SpaceX will begin building ground-based mobile communications infrastructure in the U.S. in 2027

Elon Musk’s space company, SpaceX, plans to begin rolling out its own ground-based 5G mobile network in the U.S. in 2027, according to a Qualcomm press release. The chipmaker has signed a contract with SpaceX to supply equipment for ground-based cell towers and states that, as part of a multi-year agreement, SpaceX intends to install the equipment at tens of thousands of base stations across the country. The project is expected to help Starlink Mobile become a full-fledged competitor to the three largest U.S. mobile carriers—AT&T, Verizon, and T-Mobile.

SpaceX has selected Qualcomm’s Dragonwing Cellular Infrastructure platforms to build a nationwide 5G terrestrial network. The platform is designed to process radio signals and manage data transmission. The companies did not disclose the financial terms of the multi-year agreement. Qualcomm called it the largest contract for 5G network equipment in its history, according to Reuters.

“Our agreement with SpaceX is structured in such a way that, once we begin deploying the network next year, the pace of work will pick up quite quickly,” said Durgha Malladi, executive vice president and general manager of technology planning, edge computing, and data center solutions at Qualcomm. According to him, the agreement is set to last several years, during which the network will gradually expand to a nationwide scale. Qualcomm also expects that the infrastructure being built will lay the foundation for a future transition to 6G networks.

“Starlink is building the first fully integrated nationwide network that combines satellite and ground-based infrastructure, which will allow people to stay connected no matter where they are,” — Qualcomm quotes Michael Nichols, senior vice president of Starlink (a division of SpaceX), in a press release. He added that the partnership with Qualcomm will enable the company to accelerate the development of its own comprehensive base station architecture.

The companies have not yet disclosed whose cell towers the operator Starlink Mobile will use. Shares of the three major cell tower owners in the U.S. rose following the news on November 4: American Tower by 4%, Crown Castle by 5.3%, and SBA Communications by 7.6%. SpaceX’s own stock plummeted by more than 4% amid the Democrats’ victory in the midterm elections. Qualcomm’s stock rose by 0.7%.

SpaceX intends to make Starlink Mobile the fourth-largest mobile carrier in the U.S. In October, the company announced an agreement to acquire licenses to use the 800 MHz low-frequency spectrum. Previously, SpaceX also reached an agreement to acquire radio frequencies from EchoStar. Overall, building its own radio frequency portfolio should enable the company to combine satellite coverage with a terrestrial mobile network.

However, building such infrastructure will require significant investment. According to a TD Cowen estimate cited by Reuters, building its own network could cost SpaceX more than $80 billion. The company is considering the possibility of accelerating its market entry by acquiring an existing mobile carrier. In October, SpaceX CEO Elon Musk personally discussed with EchoStar Chairman Charlie Ergen the possible purchase of the virtual mobile operator Boost Mobile or gaining access to its network, The Washington Post reported, citing sources.

Boost Mobile uses AT&T and T-Mobile’s infrastructure. According to the publication, all three of the largest U.S. carriers had previously denied SpaceX access to their networks. The acquisition of Boost Mobile will allow SpaceX to take advantage of the company’s existing agreements, although this may require the consent of the carriers providing it with access to their networks.

This article was AI-translated and verified by a human editor