Gwynne Shotwell said the company plans a hybrid satellite and terrestrial mobile network using 65 MHz of EchoStar spectrum, while analysts cautioned a nationwide carrier buildout would take years.
SpaceX has laid out plans to turn Starlink Mobile from a satellite coverage extension into a full consumer wireless service aimed at competing directly with AT&T, Verizon and T-Mobile in the roughly $600 billion U.S. market. President and COO Gwynne Shotwell said the company expects to win customers from the established carriers, while Elon Musk said the planned network could offer better connectivity and higher bandwidth than existing cellular providers. The strategy centers on combining Starlink's direct-to-cell system with a terrestrial network of cell towers, core equipment and backhaul, creating a hybrid architecture that uses both satellites and ground infrastructure. SpaceX said the effort is supported by 65 megahertz of spectrum acquired from EchoStar in two deals worth $19.6 billion, with the Federal Communications Commission (U.S. communications regulator) approving the transfer in May. Next-generation Starlink Mobile satellites are planned for 2027, and upgraded service is expected by the end of that year. Investors immediately marked down the major carriers, with AT&T falling 2.2%, Verizon dropping 2.8% and T-Mobile sliding 4% in extended trading. Analysts were more skeptical, arguing that matching nationwide carrier networks would require years of spending and execution, especially without an MVNO (mobile virtual network operator) agreement that would let SpaceX use an incumbent's network for baseline coverage. SpaceX's earnings helped show both the scale of its ambitions and the cost of pursuing them. Second-quarter revenue rose 92% to $7.8 billion, above the $6.93 billion consensus estimate, while the Starlink-led connectivity segment generated $4.3 billion, up 66%, and operating profit rose 79%. Starlink subscribers doubled to 12 million. Even so, SpaceX posted a net loss of $541 million and capital expenditures climbed to about $18.4 billion, largely for AI compute infrastructure, sending its shares about 8% lower after hours to $115.19. The shift also reshaped sentiment around AST SpaceMobile, whose carrier-partnership model differs from SpaceX's direct-to-consumer push. AST SpaceMobile shares rose for a fourth straight session as some traders argued carriers may prefer an independent satellite partner over relying on a company that is also trying to take their subscribers. T-Mobile's existing SpaceX arrangement, branded T-Satellite, is still positioned as a supplemental safety-net service rather than a replacement for conventional 4G or 5G plans, but SpaceX's broader ambitions suggest that balance could become more competitive over time.