SpaceX is planning to launch a direct-to-consumer mobile service in the U.S. under its Starlink brand, challenging the dominance of Verizon and AT&T, according to a Financial Times report.
The move would mark a significant expansion for SpaceX, which currently only plays a supporting role in the U.S. mobile market, and would put it in direct competition with major carriers.
SpaceX President Gwynne Shotwell has reportedly discussed the idea of a direct wireless service and building a ground-based mobile network in the U.S., which would be a departure from its current partnership with T-Mobile.
The goal is to sell mobile contracts directly to customers, removing middlemen and giving SpaceX more control over pricing and profits.
Combining satellite internet with normal wireless networks could help SpaceX capture a larger share of the mobile market and reduce its reliance on telecom partners.
SpaceX has been building its wireless power using spectrum deals, including a $19.6 billion purchase from EchoStar, and has seen strong market valuation and trading activity, with shares recently trading around $153.
However, analysts are cautious, with one predicting a 10-20% chance that SpaceX builds a full U.S. network from scratch, and a 60% chance that it becomes an MVNO or tries buying a carrier.
