Under the agreement, SpaceX will use Qualcomm's Dragonwing cellular infrastructure hardware and software in base stations to enable high-capacity coverage for Starlink Mobile. Qualcomm executive vice president Durga Malladi said the companies are "building world-leading cellular infrastructure in the United States, advancing 5G today, with an opportunity to lay the foundation for AI-native 6G in the years ahead."
Starlink is a critical piece of SpaceX's business, accounting for 36% of the company's revenue in the third quarter and 85% of its operating profit. But SpaceX's consumer business has been limited when it comes to mobile direct-to-device services because its satellite network cannot provide all the voice, video and data coverage that competitors offer on popular smartphones.
SpaceX is one of Qualcomm's highest-profile customers or partners in 5G infrastructure, following earlier agreements with Verizon, Dish and Vodafone. Qualcomm is best known for making the modems and radios that go inside devices rather than base stations, but it has targeted carriers and infrastructure companies since pushing into the 5G infrastructure market in 2020.
SpaceX plans to use Qualcomm's technology to establish tens of thousands of new cell sites, though it has not announced partners among cell tower companies or said how many towers may be required. Mobile carriers generally lease space from companies such as American Tower and Crown Castle, which commonly host multiple carriers from one site.
SpaceX is snapping up spectrum and forging partnerships to take on the major mobile carriers. Last month the company announced an agreement to purchase a nationwide spectrum portfolio in the 800 MHz band, a move that sent shares of U.S. carriers lower. The Washington Post reported this week that SpaceX is in talks to acquire EchoStar's Boost Mobile. SpaceX went public in June in the largest IPO on record and is now valued at close to $2 trillion.
SpaceX did not respond to CNBC's request for additional information.