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SpaceX aims to challenge AT&T, Verizon, T-Mobile with upgraded Starlink Mobile

Created at 5 Aug · 1:06 AM1 source↑ Market-relevant
IN SHORT

SpaceX President Gwynne Shotwell announced plans to launch next-generation Starlink Mobile satellites in 2027, aiming to offer a service "100 times better" than current offerings and attract customers from major US wireless carriers.

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Key Numbers

2027year for next-gen Starlink Mobile launch
65 megahertzspectrum to be acquired from EchoStar
100 times betterexpected improvement over current Starlink Mobile service

Who's Involved

Gwynne Shotwell
President of SpaceX, announced Starlink Mobile upgrade plans
SpaceX
company planning satellite and terrestrial mobile network expansion
AT&T
US wireless carrier targeted by SpaceX
Verizon
US wireless carrier targeted by SpaceX
T-Mobile
US wireless carrier partnering with SpaceX for satellite connectivity
EchoStar
company from which SpaceX is acquiring spectrum
Elon Musk
CEO of SpaceX, commented on network capabilities
Federal Communications Commission
US agency that approved spectrum transfer
SpaceX aims to challenge AT&T, Verizon, T-Mobile with upgraded Starlink Mobile

↳ Why This Matters

SpaceX's ambition to compete directly with established wireless carriers could disrupt the telecommunications market, potentially offering new options for consumers, particularly in areas with poor existing coverage, and signaling a significant shift in satellite-based communication services.

Key facts

  • SpaceX plans to launch upgraded Starlink Mobile satellites in 2027.
  • The company aims to acquire customers from AT&T, Verizon, and T-Mobile.
  • The upgraded service will leverage 65 megahertz of spectrum acquired from EchoStar.
  • SpaceX intends to build a terrestrial network alongside its satellite system.
  • The FCC approved the transfer of EchoStar spectrum to SpaceX in May.

SpaceX aims to significantly upgrade its Starlink Mobile service, with plans to launch next-generation satellites in 2027 that are expected to offer a vastly improved user experience. SpaceX President Gwynne Shotwell stated the company anticipates attracting a substantial number of customers from major US wireless carriers AT&T, Verizon, and T-Mobile, believing their service will be superior.

The enhanced Starlink Mobile network will utilize 65 megahertz of spectrum acquired from EchoStar. Shotwell described the upcoming service as potentially "100 times better" than the current iteration. In addition to satellite capabilities, SpaceX also intends to deploy a terrestrial network, utilizing smaller, lower-cost cellular base stations integrated with Starlink dishes. SpaceX CEO Elon Musk suggested this hybrid approach would provide superior connectivity and higher bandwidth compared to existing cellular providers.

Currently, Starlink Mobile primarily functions as a backup service, connecting phones via satellites when ground-based service is unavailable, such as in remote or emergency situations. T-Mobile currently partners with SpaceX for its satellite-to-cellular service, branded as T-Satellite, which is not a full replacement for standard mobile plans. A T-Mobile spokesperson noted that satellite-to-cell service is complementary and represents a minimal portion of their network usage.

The Federal Communications Commission approved the transfer of EchoStar's spectrum to SpaceX in May, clearing the path for these hybrid satellite and terrestrial applications. Shotwell did not disclose the capital costs associated with this expansion. Representatives for Verizon and AT&T did not immediately respond to requests for comment.

Frequently asked questions

Starlink Mobile is a service by SpaceX that uses satellites to provide phone connectivity, primarily acting as a backup for areas with no ground service.

SpaceX plans to launch upgraded satellites in 2027, acquire spectrum from EchoStar, and build a hybrid satellite-terrestrial network to offer a superior mobile service.

SpaceX explicitly named AT&T, Verizon, and T-Mobile as carriers they aim to attract customers from.

T-Mobile partners with SpaceX for its T-Satellite service, which provides basic satellite-to-cellular connectivity.

What Happens Next

01SpaceX plans to launch next-generation Starlink Mobile satellites in 2027.
02The company will begin providing upgraded service by the end of 2027.

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Cadence

How It Developed

SpaceX plans to launch upgraded Starlink Mobile satellites in 2027.
The upgraded service will utilize spectrum acquired from EchoStar.
SpaceX expects the new service to be significantly better than current offerings.
SpaceX aims to attract customers from AT&T, Verizon, and T-Mobile.
SpaceX also plans to build a terrestrial network with small cellular base stations.
The FCC approved the transfer of EchoStar spectrum to SpaceX in May.

Sources

T1
SpaceX says it’s coming for AT&T, Verizon, and T-Mobile customersBusiness Insider

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