SpaceX mulls Starlink consumer mobile play

SpaceX is reportedly weighing a push into the US consumer mobile market through its Starlink business, in a move that would pit the satellite operator directly against Verizon, AT&T and T-Mobile US.

According to the Financial Times (FT), the Elon Musk-owned company outlined the plans during a recent IPO roadshow, with president and COO Gwynne Shotwell telling investors it is considering a Starlink retail mobile service and could eventually build its own terrestrial mobile network in the US.

In a bond prospectus seen by the FT, SpaceX noted Starlink Mobile is expected initially “to be most impactful for customers in remote areas uncovered by terrestrial mobile networks”. In the long term, it aims to “compete to be the preferred connectivity experience to our customers no matter where they are located, whether in rural, suburban or urban areas”.

While SpaceX has not publicly confirmed plans for a consumer mobile offering, speculation has intensified since the company acquired wireless spectrum licences through a $17 billion deal with rival EchoStar last year.

The reported plans also follow SpaceX’s record-breaking $75 billion IPO earlier this month, which valued the company at $1.78 trillion. The satellite player plans to use proceeds from the raise to expand its Starlink constellation, invest in space-based AI data centres and reduce debt

Previously, SpaceX has provided limited direct-to-consumer offerings in the US in partnership with T-Mobile. Last year, the company gave T-Mobile US access to Starlink birds to launch a direct-to-device (D2D) satellite service aimed at expanding connectivity in remote and rural areas. Meanwhile in April, T-Mobile US launched SuperBroadband, a managed business internet service combining SpaceX’s Starlink low-Earth orbit satellite network with its nationwide 5G-Advanced infrastructure.