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SpaceX targets US consumers with Starlink mobile service push

SpaceX has told investors it is considering launching a standalone Starlink mobile service for US consumers, according to the Financial Times. SpaceX president Gwynne Shotwell raised the possibility during the company's IPO roadshow, saying SpaceX could build its own terrestrial US mobile network and sell directly to consumers rather than through carrier partners.

SpaceX is reportedly preparing to launch a direct-to-consumer mobile service in the US using its Starlink satellite network. According to a report from the Financial Times, the Elon Musk-helmed company is looking to build its own US mobile network” to directly compete against telecommunication giants like AT&T, Verizon, and T-Mobile.

While SpaceX currently works alongside T-Mobile to provide some extra cellular connectivity in rural regions, the company is now reportedly considering its own Starlink retail product. At a recent IPO roadshow, SpaceX president Gwynne Shotwell hinted to investors that the company is exploring creating its own network infrastructure.

In a sense, the groundwork for this move has already been quietly laid out. Over the course of late 2023 and last year, SpaceX bought close to $20 billion worth of wireless spectrum licenses from EchoStar. Those airwaves give Starlink the ability to build an affordable, strong direct-to-cell service without having to rely completely on other telecom companies. Oppenheimer analysts believe that as Starlink branches off into more direct-to-consumer products, it could seriously shake up the $1.6 trillion US comms industry.

SpaceX has told investors it plans to launch a Starlink mobile service for U.S. ‌consumers, the Financial Times reported on Friday, in ‌a move that could allow the Elon Musk-led company to compete directly with ​Verizon, AT&T and T-Mobile.

Here are some details:

• SpaceX already offers direct-to-cell connectivity with T-Mobile in the U.S., providing supplemental coverage from space to extend internet access to remote areas.

• SpaceX is ‌now considering launching ⁠a Starlink retail product and could build its own terrestrial U.S. mobile network, President Gwynne Shotwell ⁠told investors during a recent IPO roadshow, the FT report said, citing sources.

• Reuters could not immediately verify the report. ​SpaceX did ​not immediately respond to ​a Reuters request for comment ‌outside regular business hours.

• In September last year, SpaceX bought wireless spectrum licenses from EchoStar for its Starlink satellite network for about $17 billion and then again for $2.6 billion in November, giving it the ability to quickly create a strong ‌and affordable direct-to-cell service by ​using EchoStar's wireless airwaves.

• SpaceX will ​disrupt the $1.6 trillion U.S. ​communications industry as its satellite broadband unit ‌Starlink expands, brokerage firm Oppenheimer said ​in a ​note earlier this month.

• SpaceX's record valuation is grounded in Starlink, which has over 10 million subscribers, and ​a launch business ‌that analysts and investors say has transformed access to ​orbit.

This aggressive expansion into the mobile sector fits well with SpaceX’s overall push to squeeze every last drop of revenue out of their Starlink satellite internet service while satisfying new shareholders after its recent public offering pushed its valuation past the $2 trillion mark. As we recently reported, Starlink ended its free dish perks to shift to a new hardware rental model. Rather than offer the Standard dish as a free rental on Residential plans, the company now charges a $10 monthly kit fee.

The complementary Mini dish perk for the $130/month Residential Max plan was also retired. Those hardware monetization moves pave the way for the launch of a new, highly portable Starlink Standard Gen 4 kit and an upgraded Mini dish with a built-in battery.

Though its new terrestrial mobile network is focused on everyday consumers, SpaceX’s ambitions stretch further into heavy enterprise computing. SpaceX has been quietly working on building out a separate AI Orbital Data Center satellite constellation called Starmind. Designed to launch as a prototype in early 2027, the Starmind project will consist of up to a million AI-powered satellites intended to offload heavy computing workloads into orbit. By relying on limitless solar power and natural vacuum cooling, SpaceX aims to avoid the space, power, and water limits that are choking down Earth-bound AI data centers.