SpaceX CEO Elon Musk hinted that Starlink could evolve into a full-fledged mobile carrier following a $17 billion agreement to acquire radio spectrum from EchoStar, parent company of Boost Mobile.
Musk Raises Possibility of Starlink as a Carrier
During an appearance on the All-In Podcast, Musk was asked whether Starlink might eventually replace regional carriers and become a global provider of cellular service. “That would be one of the options,” he replied.
The comment comes as SpaceX continues its partnership with T-Mobile to deliver satellite-powered text messaging and limited data services using T-Mobile’s existing spectrum. With EchoStar’s 1.9GHz and 2GHz bands now in hand, SpaceX could expand Starlink’s cellular offering and begin to match traditional LTE services.
Musk stressed that existing networks will remain competitive, joking about the idea of buying Verizon. He emphasized that carriers own significant spectrum holdings, but Starlink could emerge as an additional option alongside AT&T, T-Mobile, and Verizon.
Starlink would eventually integrate home broadband with satellite-to-cell service, creating a “comprehensive solution” for users. However, Musk noted that current smartphones will need hardware changes to support the newly acquired frequencies, which could take two years. SpaceX is also preparing next-generation satellites to utilize the spectrum.
Industry Reaction and Skepticism
Analysts remain cautious about Musk’s vision. Tim Farrar of TMF Associates suggested that partnering with phone manufacturers or reselling through mobile operators is more realistic than creating a Starlink phone. Lluc Palerm Serra of Analysys Mason added that the service may not compete in dense urban areas due to capacity limits, and is more likely to succeed in rural or remote markets.
AT&T CEO John Stankey also weighed in, saying that while 40MHz of spectrum is not enough to replace terrestrial carriers, SpaceX could pressure networks in underserved areas. Still, he downplayed the likelihood of Starlink directly rivaling AT&T’s core business.
Author’s Opinion
The EchoStar deal gives Musk leverage, but it doesn’t automatically turn Starlink into the next Verizon. Spectrum and satellites alone can’t match the capacity of terrestrial networks in cities. Where Starlink can shine is rural and remote coverage, where traditional carriers struggle and demand remains high. If Musk positions Starlink as the go-to solution for connectivity in hard-to-reach areas, it could carve out a profitable niche without overpromising on global dominance.
Featured image credit: Heute
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