Elon Musk's Starlink could be your next cellphone carrier

SpaceX is reportedly negotiating with major cellular infrastructure companies to secure access to at least 80,000 sites nationwide. One company involved is Crown Castle, which owns and operates roughly 40,000 cell towers across the country. During an Oct. 21 earnings call, Crown Castle CEO Chris Hillabrant was asked about potential leasing discussions with SpaceX and other satellite providers. "You can assume that we're talking to all parties," he said, although he declined to discuss specific customers.

Satellite meets ground networks

While Starlink already has satellites orbiting Earth, SpaceX needs thousands of cell towers to provide comprehensive coverage. Satellites can provide connectivity in remote areas where traditional cell towers are scarce, but signals from space can struggle to reach phones inside buildings or in places with an obstructed view of the sky. That's where ground-based cellular networks come in.

SpaceX has also discussed adding small cellular base stations to equipment installed at Starlink customers' homes and businesses. Those stations could help provide mobile coverage without requiring the company to rely entirely on traditional cell towers. However, Starlink customers install their equipment where they need home internet, which may not align with where a nationwide cellphone network needs additional coverage.

Spectrum and satellite expansion

SpaceX has made several investments supporting its wireless ambitions. On October 8, Grain Management announced an agreement to sell its nationwide portfolio of 800 MHz wireless spectrum to SpaceX, subject to FCC approval. Lower-frequency signals travel farther and penetrate buildings more effectively, which could help Starlink Mobile deliver coverage in challenging areas.

SpaceX also received FCC authorization in October to deploy a new constellation of up to 15,000 direct-to-device satellites designed to communicate with compatible phones and support a broader range of mobile services. During SpaceX's October earnings call, Musk said the company would expand its terrestrial networks to provide broader connectivity wherever permitted.

Market challenges and timeline

Analysts at TD Cowen reportedly estimated that building a nationwide terrestrial network could cost more than $80 billion and take years to complete. SpaceX would face established competitors with decades of experience, though it already works with T-Mobile through its T-Satellite with Starlink service.

SpaceX expects to begin deploying its next-generation Starlink Mobile satellites in 2027, but building a terrestrial cellular network presents separate challenges. The company still needs access to suitable tower locations and equipment, plus faces additional regulatory requirements. Its nationwide spectrum agreement with Grain Management still needs FCC approval.