SpaceX is moving closer to challenging major US mobile carriers after securing two significant developments for its Starlink satellite network.
Earlier this week, the Federal Communications Commission (FCC) approved SpaceX's plan to deploy 15,000 Starlink satellites capable of connecting directly to mobile devices. The agency also waived a requirement for SpaceX to partner with traditional wireless carriers, allowing the company to use its own spectrum.
On Thursday, SpaceX announced plans to acquire low-frequency cellular spectrum that could improve Starlink's coverage inside buildings, addressing one of the biggest limitations of satellite-based mobile connectivity.
Elon Musk described the announcement as a major breakthrough, while SpaceX said the additional spectrum could help transform Starlink Mobile into a serious competitor to Verizon, AT&T, and T-Mobile.
The news rattled investors, sending T-Mobile shares down more than 11% in after-hours trading, while Verizon and AT&T each dropped approximately 6.6%.
However, traditional carriers remain skeptical. Verizon CEO Dan Schulman recently argued that satellite networks have had no noticeable impact on the company's broadband growth and are unlikely to become serious competitors anytime soon.
Despite its progress, SpaceX still faces major challenges. Building a reliable mobile network in densely populated cities would require additional infrastructure, including cell towers and fiber connections.
Still, the latest regulatory approval and spectrum acquisition represent significant steps toward Starlink becoming a nationwide mobile service rather than primarily a connectivity solution for remote locations.