SpaceX has announced plans to expand the Starlink network into a full mobile carrier, buying a significant chunk of low-band spectrum that has traded among telecom companies for decades. This acquisition follows a separate deal last year to purchase close to $20 billion worth of spectrum from EchoStar, the satellite TV provider.
Adding to its momentum, the Federal Communications Commission recently approved the deployment of 15,000 next-generation Starlink satellites designed for direct-to-device connectivity. Together, these moves signal the company's intention to compete directly with AT&T, Verizon, and T-Mobile.
Walter Piecyk, a partner and analyst at LightShed Partners who covers tech, media, and telecom, has been monitoring SpaceX's spectrum acquisitions and predicted the company was heading in this direction. He said the existing telecom giants have fumbled their response to SpaceX's growing threat.
Nilay Patel, editor-in-chief of The Verge and a longtime telecom observer, noted the industry's history of failed expansion attempts. "I've always known that these companies can say they want to do something until they run into the harsh reality of how expensive it is to actually do it," Patel wrote. "The telecom graveyard of pivots, bad ideas, and failed acquisitions is vast."
SpaceX has not disclosed a timeline for launching its mobile service or which markets it will target first.