- SpaceX reportedly interested in a Starlink mobile network
- The company could try to build its own infrastructure.
- Analysts believe that an agreement with the carrier will be more likely
SpaceX is reportedly planning to launch a Starlink-branded mobile network to compete with Verizon Wireless, AT&T and T-Mobile in the US, although not everyone is convinced the company can carve out a niche in the market.
According to the Financial Times, SpaceX has recently shared its ambitions with investors and intends to offer contracts to individual consumers. It already partners with T-Mobile in the US to provide emergency satellite messaging services.
However, this would not be a satellite-based network: it could not offer enough capacity on its own. The idea is that SpaceX plans to build its own ground infrastructure and, in fact, has already paid $17 billion to EchoStar for a share of wireless spectrum licenses.
And the big three operators have so far refused to close Mobile Virtual Network Operator (MVNO) deals with SpaceX, although some analysts believe that agreements could eventually be reached, possibly with the EchoStar spectrum as leverage.
Satellites and broadband
Setting up a Starlink Mobile MVNO, purchasing an existing MVNO, or even acquiring an existing carrier are all options on the table for SpaceX, according to current speculation. All of those paths would seem to be easier than building new cell towers and base stations.
Analyst David Barden of New Street Research told the Financial Times that it would be “incredibly difficult” for SpaceX to build its own networks in a “saturated” market like the United States. However, he also agrees that this could be a negotiation tactic SpaceX is using to get existing networks to come to an agreement.
SpaceX and Starlink are clearly interested in expanding their communications offerings, with next-generation satellites in the works, and all high-end smartphones available to buy can now connect to these satellites without any additional hardware.
Add in Starlink’s growing broadband business and also reported terrestrial network capacity, and we could be looking at a very comprehensive offering from Starlink in the not-too-distant future.
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