Key facts
- SpaceX's Starlink needs an estimated $500 billion to compete in US wireless.
- Building a competitive US terrestrial network would require up to 80,000 cell towers.
- Starlink's satellite-based service is 100 to 1000 times less efficient than terrestrial networks in urban and suburban areas.
- The build-out for a competitive network is estimated to take four to six years.
Verizon CEO Dan Schulman believes that SpaceX's Starlink faces substantial technical and financial challenges to become a significant player in the US wireless market. He stated that building a terrestrial network comparable to existing ones would require an investment of up to half a trillion dollars over six to eight years, involving the construction of approximately 80,000 cell towers. Schulman highlighted that Starlink's satellite-based service is significantly less efficient than terrestrial networks in populated areas, where Verizon generates most of its revenue. His remarks follow news of Starlink acquiring mobile-friendly spectrum, which had briefly impacted carrier stock prices.