SpaceX is moving from the sky to the cell tower in its bid to compete with America’s big wireless carriers.
On November 4, SpaceX and Qualcomm announced a multiyear agreement for Qualcomm to supply network technology for Starlink Mobile, the SpaceX mobile service positioned against Verizon, AT&T and T-Mobile. According to CNBC, SpaceX will use Qualcomm’s Dragonwing cellular infrastructure hardware and software in base stations to deliver high-capacity coverage, and Qualcomm called it its largest 5G initiative to date. Financial terms were not disclosed.
Terrestrial network to complement satellites
Qualcomm said the terrestrial network will “complement Starlink’s satellite capabilities,” with rollout planned to begin next year. SpaceX plans to use the technology for tens of thousands of new cell sites across the United States, but CNBC notes it has not named tower partners or said how many new towers it may need.
“Together with SpaceX, we 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,” Qualcomm executive vice president Durga Malladi said.
Part of a bigger wireless push
Starlink accounted for 36% of SpaceX’s revenue in the third quarter and 85% of its operating profit, CNBC reports. Its direct-to-device satellite service, however, cannot provide all the voice, video and data coverage that phone users expect. Last month SpaceX announced a deal to buy a nationwide 800 MHz spectrum portfolio, and the Washington Post reported this week that it is in talks to acquire EchoStar’s Boost Mobile.
For Qualcomm, best known for the modems and radios inside phones, SpaceX becomes one of its highest-profile infrastructure customers, following earlier deals with Verizon, Dish and Vodafone.
Why it matters
A well-funded new entrant building tens of thousands of US cell sites could reshape pricing and competition in American wireless, and create demand across towers, backhaul, fiber, power and field services.
For telecom equipment makers, network services firms and enterprise mobility vendors, now is the time to map where this buildout creates openings and to start conversations with the partners who will deliver it.
Source: CNBC, Axios. Written by the xRapid Media LLP team.
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