- Qualcomm will provide cellular infrastructure technology for Starlink Mobile's planned ground-based 5G network.
- SpaceX plans to deploy the technology across tens of thousands of sites, with the rollout expected to begin in 2027.
- The network will combine traditional cell sites with Starlink satellites as the company takes aim at Verizon, AT&T and T-Mobile.
SpaceX has joined hands with chipmaker Qualcomm to build the ground-based network behind its Starlink Mobile service, taking another step towards challenging major US wireless carriers such as Verizon, AT&T and T-Mobile.
Under a multiyear agreement announced Wednesday (4), Qualcomm will supply cellular infrastructure hardware and software for Starlink Mobile's planned nationwide 5G network. The companies expect deployment to begin in 2027, with tens of thousands of sites planned across the country.
The financial terms were not disclosed. Qualcomm described the agreement as its largest 5G deal to date, according to Reuters.
The partnership marks a significant expansion of Qualcomm's role in the telecommunications industry. While the company is best known for supplying chips, modems and radio technology used in smartphones, it will now also provide equipment and software for the infrastructure that powers mobile networks.
The technology will come from Qualcomm's Dragonwing cellular infrastructure portfolio. It will be used in base stations to support radio and baseband processing, helping SpaceX build a network capable of handling large volumes of mobile traffic.
“Together with SpaceX, we are building world-leading cellular infrastructure in the United States, advancing 5G today, with an opportunity to lay the foundation for AI-native 6G in the years ahead,” Durga Malladi, an executive vice president at Qualcomm, said in the company's announcement.
Why does Starlink need a ground-based network?
Starlink has built its business around a large constellation of satellites in low Earth orbit, providing internet connectivity in areas where traditional broadband infrastructure is limited.
However, satellite connectivity alone cannot yet offer the same level of mobile coverage, capacity and performance as established cellular networks. Direct-to-device services have limitations, particularly when it comes to handling the full range of voice, video and data requirements of everyday smartphone users.
SpaceX plans to address this by combining its satellite capabilities with conventional ground-based mobile infrastructure. The Qualcomm partnership will help provide the cell sites needed to deliver 5G connectivity, while satellites can extend coverage beyond the reach of traditional networks.
The planned network will use Qualcomm's Massive MIMO technology, which employs multiple antennas to transmit and receive signals simultaneously. This is designed to improve coverage and network capacity, allowing more users and devices to connect efficiently.
The rollout will involve tens of thousands of sites over several years. SpaceX has not yet disclosed how many new cell towers it will need or identified any partnerships with major cell tower operators.
How serious is SpaceX's challenge to US wireless carriers?
The Qualcomm agreement is part of a wider effort by SpaceX to establish a stronger presence in the US mobile market.
In October, the company announced an agreement to acquire a nationwide portfolio of wireless spectrum in the 800 MHz band. Spectrum refers to the radio frequencies used to transmit wireless signals, and securing these licenses gives SpaceX additional resources to build its own mobile network.
The company has also been reported to be in discussions about acquiring EchoStar's Boost Mobile business, although no deal has been announced.
For Verizon, AT&T and T-Mobile, the prospect of a new competitor backed by SpaceX's satellite infrastructure and spectrum holdings presents a potential challenge. However, building a nationwide mobile network is an expensive and complicated undertaking. The established operators already have extensive infrastructure, large customer bases and years of experience managing wireless services.
SpaceX will need to build out its network and demonstrate that it can deliver reliable coverage before it can compete on a similar scale.
Starlink is already an important part of SpaceX's business, contributing a substantial share of its revenue and operating profit. Expanding into mobile services could give the company another source of growth while bringing its satellite and terrestrial connectivity operations closer together.
For Qualcomm, meanwhile, the deal offers an opportunity to expand its infrastructure business beyond its traditional strength in smartphone technology.
The partnership does not mean Starlink is ready to replace existing mobile carriers. But with spectrum acquisitions, new infrastructure and a major technology partner in place, SpaceX is making a more direct attempt to enter a market long dominated by established telecom companies.
