Elon Musk’s SpaceX wants to become a major mobile carrier in the United States. The plan could bring new pressure on firms that now lead the phone market. Investors reacted fast to the news, raising fresh questions about future growth and competition.
SpaceX said late Thursday that its Starlink Mobile service would link phones through both satellites and ground-based networks. The company said the plan aims to keep devices connected across the country. The launch still needs final approval from the Federal Communications Commission, known as the FCC.
The company also said the FCC had approved the launch of 15,000 new satellites for Starlink Mobile. The move could help SpaceX build a wider network for phone services. It also marks a new step in Musk’s effort to expand his reach in the global tech market.
US Wireless Stocks Fall
Shares of AT&T fell 9.8% on Friday. Verizon shares dropped 8.7%, while T-Mobile US fell 13.3%. The losses marked a major setback for all three firms.
Verizon saw its biggest one-day share price drop since 2002. T-Mobile had its worst trading day since 2011. The sharp falls show how much concern the SpaceX plan has raised among investors.
Other firms with ties to wireless services also lost value. Shares of Charter and Comcast fell during Friday’s trading. Both companies sell mobile plans under their own brands while using Verizon’s network.
SpaceX could become a new rival in a market that has long been led by large phone firms. A satellite-based service may offer new ways to reach users in areas where ground networks are weak. But the final impact will depend on the service, its cost, its reach, and the rules set by US regulators.
SpaceX Builds Its Tech Empire
The Starlink Mobile plan is part of Musk’s wider push to grow his tech businesses. His companies include Tesla, the electric car maker, X, the social media platform, and xAI, which works on artificial intelligence and data centers.
SpaceX also runs several lines of business. Starlink provides high-speed internet to homes and firms around the world. Starshield offers related services for government clients.
Starlink has become the main source of income for SpaceX. The service has more than 12 million paying users, based on the figures cited in the report. The company’s latest earnings report also showed that Starlink was the only profitable part of its business.
The reported value of Starlink stood at $2.2 trillion on Friday. That figure highlights the scale of the business and the role it may play in SpaceX’s next phase of growth.
Musk said the new spectrum deal was the final key piece needed for SpaceX to offer full phone coverage across America. Spectrum refers to radio waves used to carry signals for mobile and other wireless services.
The deal could give SpaceX more tools to compete with current phone providers. Yet the company must still secure final FCC approval before it can launch the full service.
Regulators Play a Key Role
SpaceX is also a major US government contractor. It builds and launches rockets for NASA and several national security agencies. Its public contracts form an important part of its business.
Government decisions may affect how fast SpaceX can grow. Regulatory approval and new contracts could also shape investor views of the company. The planned mobile service adds another area where official decisions may affect its future.
SpaceX must now show that its new service can work at scale and attract users. It will also face questions about prices, network quality, and how well its system works with existing phones.
Musk Remains Close to Trump
Musk also remains active in US politics. He is a close ally of President Donald Trump and gave major support to Trump’s 2024 election effort.
Musk attended a recent White House state dinner for Chinese President Xi Jinping. He sat next to First Lady Melania Trump at the event. Earlier in the week, Trump gave Musk an award for his work in science.
Musk has also renewed his support for Republican candidates ahead of the November midterm elections. His America PAC had spent more than $36 million by Friday to support Republicans in key races, based on figures cited in the report.
The timing adds a political dimension to the growth of Musk’s business empire. SpaceX relies on public agencies for some of its work, while its new mobile plan faces a key regulatory step.
For now, the market reaction shows that investors see Starlink Mobile as a possible threat to established phone firms. The next steps will depend on regulatory approval and SpaceX’s ability to turn its satellite network into a major US mobile service.
