SpaceX has signed a multiyear deal with Qualcomm to build the ground-based cellular network behind Starlink Mobile, the company’s planned challenge to Verizon, AT&T and T-Mobile, the companies announced Wednesday. Financial terms were not disclosed.
Under the agreement, Qualcomm will supply its Dragonwing cellular infrastructure hardware and software for Starlink Mobile’s terrestrial base stations. SpaceX plans to begin a nationwide U.S. rollout in 2027, with tens of thousands of cell sites deployed over the life of the multiyear agreement. The companies did not say how many of those sites will be newly built towers, and no tower partners were announced.
Starlink flat-panel dishes mounted on a mast (Ka23 13 / CC BY 4.0).
Qualcomm said the terrestrial network will complement Starlink’s satellites, which today beam broadband internet to millions of U.S. subscribers from low-earth orbit but cannot match the voice, video and data coverage that the big carriers deliver to ordinary smartphones. CNBC reported that Qualcomm described the project as its largest 5G initiative to date – notable for a company best known for the modems inside phones, not the equipment that runs a network.
“We shouldn’t live in a time where phone calls are still dropping whether you’re at home or on-the-go,” said Michael Nicolls, Starlink’s senior vice president. “Starlink is building the first fully-integrated nationwide satellite and terrestrial network that will keep people connected no matter where they are.”
The deal is the latest step in an aggressive push into wireless. Last month SpaceX agreed to buy a nationwide spectrum portfolio in the 800 MHz band, a move that sent carrier shares sliding, and the Washington Post reported this week that SpaceX is in talks to acquire EchoStar’s Boost Mobile. Starlink now accounts for 36% of SpaceX’s revenue and 85% of its operating profit, according to CNBC. SpaceX, which went public in June in the largest IPO on record, is valued at close to $2 trillion.
What it means: Americans could eventually get a fourth national cell phone carrier, backed by the world’s most valuable aerospace company and built with one of its biggest chipmakers. But nothing is on sale yet – the rollout is only planned to start in 2027, and SpaceX has not confirmed when, or whether, consumers will be able to sign up.
JBizNews Desk | San Diego
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