SpaceX wants to take on Verizon and T-Mobile with its own Starlink mobile service

The cozy relationship between satellite internet and traditional cell carriers is about to face a significant challenge. SpaceX is reportedly preparing for a massive strategy shift that will put it in competition with AT&T, Verizon, and T-Mobile.

Financial Times reports that SpaceX President Gwynne Shotwell told investors during an IPO roadshow that the company is actively considering a Starlink-branded retail mobile service for consumers in the US. Even crazier? SpaceX could build out its own wireless network on the ground to support it.

That aspiration didn’t just pop up overnight. Last month, the US Federal Communications Commission approved SpaceX’s purchase of 65 MHz of wireless spectrum from EchoStar for $17 billion. The company gains exclusive spectrum that can underpin its next-generation direct-to-device services and hybrid satellite-cellular network. Additionally, late last year, Starlink filed trademarks, including “Starlink Mobile” and “Powered by Starlink.”

A consumer mobile service would also fit well with the rapid growth of Starlink. It was originally designed as a satellite broadband service for rural communities but has evolved into a broader communications platform. SpaceX has already been offering direct-to-cell capabilities with telecom partners, enabling compatible mobile phones to connect directly to satellites when there’s no terrestrial coverage. That technology is expected to play a growing role in emergency communications and rural connectivity.

But it won’t be easy to launch a nationwide mobile carrier. All told, SpaceX has far less spectrum than US wireless operators do, and a competitive terrestrial network would require huge infrastructure investments.

Still, SpaceX has one edge that few competitors can match: its vertically integrated business. The company makes its own satellites, uses its rockets to launch them, and already has one of the biggest low-Earth orbit satellite constellations in the world. That level of control could make it easier to blend satellite and cellular connectivity into a seamless experience if it decides to go after consumers directly.