Starlink Mobile vs AT&T: SpaceX outlines a terrestrial network plan
SpaceX says Starlink Mobile could take customers from major US carriers, but its spectrum and network build-out remain unproven.
By Renata Fuchs · Policy Reporter
· 3 min read
Starlink Mobile vs AT&T is moving from a satellite coverage partnership question to a proposed full-service wireless challenge. SpaceX President Gwynne Shotwell said the company plans to add a terrestrial network to Starlink’s satellite connectivity and expects it can win customers from AT&T, T-Mobile and Verizon, although it has not disclosed the cost of that build-out or demonstrated the claimed performance.
On SpaceX’s earnings call, Shotwell said spectrum the company is acquiring from EchoStar includes terrestrial rights and will support the equipment and systems required for a mobile service. She said SpaceX believes satellite coverage will remove dead zones and provide more reliable service during natural disasters. Elon Musk separately projected that the network could provide better and higher bandwidth than current cellular services. Those are executive forecasts, not comparative test results.
How would Starlink Mobile compete with AT&T, T-Mobile and Verizon?
SpaceX’s proposed model combines direct-to-device satellites with a distributed ground network. Rather than construct conventional large cell towers, Shotwell and Musk described deploying small cellular base stations, or femtocells, on equipment used to support Starlink broadband dishes at homes and businesses. The company’s view is that a large base of rooftop antennas with clear sky visibility could serve phones using mobile spectrum bands.
That approach would mark a shift for Starlink, which has partnered with existing carriers to extend coverage into areas beyond tower networks. T-Mobile is already a SpaceX partner. AT&T and Verizon have agreements with AST SpaceMobile, while all three carriers have announced a joint venture intended to pool spectrum and help satellite providers reach customers through a unified platform, according to Ars Technica.
SpaceX currently operates its direct-to-cell service using about 5 MHz of spectrum through telecom partners, Shotwell said. The EchoStar transaction covers 65 MHz of nationwide licenses in bands between 1.695 GHz and 2.2 GHz, Ars Technica reported. Shotwell said added spectrum and next-generation satellites could make the service about 100 times better than its current system.
The spectrum deal is not yet fully complete. The Federal Communications Commission approved it, but Ars Technica reported that approvals outside the US are still required and closing is scheduled by November 30, 2027. SpaceX has said the licenses would be temporarily moved to a trust for its benefit before closing.
When could the upgraded Starlink Mobile service launch?
Shotwell said SpaceX expects to begin flying next-generation mobile satellites in 2027 and start service near the end of that year. A SpaceX filing reported by Ars Technica similarly said service could begin by late 2027, with thousands of upgraded direct-to-device satellites planned by the end of 2028. SpaceX has deployed about 650 direct-to-cell satellites under existing authorizations and is seeking FCC approval for as many as 15,000 next-generation mobile satellites.
The competitive gap remains substantial. AT&T, T-Mobile and Verizon have nationwide tower systems and more spectrum. Telecom analyst Craig Moffett told Reuters that without an MVNO agreement from a carrier to provide baseline coverage, a competitive direct-to-consumer Starlink service within five years is extraordinarily difficult to envision. New Street Research analyst David Barden questioned whether 65 MHz could replicate networks developed over decades with roughly 1,000 MHz of spectrum.
SpaceX has outlined an ambition to become a carrier. It has not yet shown the financing, deployment scale, capacity or regulatory path needed to establish that it can match the incumbents.
This story draws on original reporting from Ars Technica.
