Gwynne Shotwell plans to transform SpaceX Starlink into a full-fledged mobile carrier to compete with major wireless giants.
SpaceX President Gwynne Shotwell announced plans to develop Starlink into a comprehensive mobile service capable of competing directly with major U.S. wireless carriers like AT&T, Verizon, and T-Mobile. During the company's first earnings call following its IPO, Shotwell explained that SpaceX will utilize 65 MHz of wireless spectrum acquired from EchoStar to build out terrestrial infrastructure. This strategy aims to provide a service that is 100 times better than current direct-to-cell capabilities by the end of 2027. To achieve this, SpaceX intends to deploy a large number of low-cost, small cellular base stations paired with Starlink dishes instead of traditional large cell towers. CEO Elon Musk noted that these small stations will provide higher bandwidth than current cellular providers. While analysts suggest that SpaceX will face significant challenges competing with the established 'Big Three' due to their vast spectrum holdings, Shotwell remains confident that Starlink will capture a significant portion of their market share. Shares of AT&T, T-Mobile, and Verizon fell between 2 to 4 percent following the announcement.