Reuters
[Photo Credit: Reuters]
SpaceX (SPCX.O), opens new tab has told investors it plans to launch a Starlink mobile service for U.S. consumers, the Financial Times reported on Friday, in a move that could allow the Elon Musk-led company to compete directly with Verizon (VZ.N), opens new tab, AT&T (T.N), opens new tab and T-Mobile (TMUS.O), opens new tab.
SpaceX already offers direct-to-cell connectivity with T-Mobile in the U.S., providing supplemental coverage from space to extend internet access to remote areas.
SpaceX is now considering launching a Starlink retail product and could build its own terrestrial U.S. mobile network, President Gwynne Shotwell told investors during a recent IPO roadshow, the FT report said, citing sources.
Reuters could not immediately verify the report.
SpaceX did not immediately respond to a Reuters request for comment outside regular business hours.
In September last year, SpaceX bought wireless spectrum licenses from EchoStar for its Starlink satellite network for about $17 billion and then again for $2.6 billion in November, giving it the ability to quickly create a strong and affordable direct-to-cell service by using EchoStar’s wireless airwaves.
SpaceX will disrupt the $1.6 trillion U.S. communications industry as its satellite broadband unit Starlink expands, brokerage firm Oppenheimer said in a note earlier this month.
SpaceX’s record valuation is grounded in Starlink, which has over 10 million subscribers, and a launch business that analysts and investors say has transformed access to orbit.
