SpaceX president Gwynne Shotwell claimed Starlink Mobile is positioned to compete directly with AT&T, Verizon and T-Mobile US, pointing to the trio’s roughly $600 billion in combined annual revenue as a measure of the opportunity.
Speaking on SpaceX’s Q2 earnings call, Shotwell said the service’s capability could improve roughly 100-fold once the company deploys next-generation birds and spectrum acquired from EchoStar, with commercial service targeted to begin by the end of next year.
Shotwell said the current direct-to-cell system operates using around 5MHz of bandwidth through local telco partners, but SpaceX now has access to 65MHz of bandwidth via the EchoStar spectrum deal, alongside plans to deploy roughly 10 times as many satellites.
“So, simplifying, you could look at Starlink Mobile leveraging the next-generation satellite and the EchoStar spectrum as being 100 times better, 10 times 10 better than what we’ve got right now,” she said, adding the upgraded service already supports voice and video calls over apps such as Signal and WhatsApp.
Shotwell described a terrestrial deployment approach built around Starlink’s existing broadband hardware rather than a conventional cell tower build-out.
“You could put a base station, a cellular base station on the gear that holds a Starlink broadband dish,” she said. “You can have kind of these little femtocells around the country and you deploy that as you need it. You don’t have to necessarily spend many billions of dollars in low band spectrum all upfront before you deploy your system.”
She was reluctant to give a specific capex figure for the terrestrial build-out.
“We have a lot of really kind of great and new ideas for how we’re going to do that,” she said. “And I think it will be quite capex efficient.”
CEO Elon Musk elaborated on the same point, saying it was worth emphasising given its importance to the economics of the rollout.
Rather than deploying expensive, hard-to-site large cellular base stations, he said SpaceX expects to deploy a large number of small stations which are effectively Starlink dishes also equipped to provide connectivity in mobile spectrum bands.
“The Starlink antennas are located on the roofs of houses and businesses,” he said. “So, they’ve got a sort of a clear view for providing connectivity directly to cell phones on the ground.”
Musk expects the resulting service to offer “better and higher bandwidth than what is currently available from cellular providers”.
Shotwell stated SpaceX expects strong customer uptake once the improved service launches.
“I anticipate us to be able to acquire quite a few of their customers, because I think our service will be better,” she said, citing Starlink Mobile’s ability to eliminate dead zones and maintain service during natural disasters, given the relative stability of the satellite environment compared with terrestrial infrastructure on the ground.
Q2 numbers
SpaceX reported Q2 revenue of $7.8 billion, up 92 per cent year-on-year from $4.1 billion, in the company’s first results release since going public in June.
Net loss narrowed to $541 million, an improvement of $467 million from the $1 billion loss posted a year earlier.
Capex surged to $18.4 billion for the quarter, up from $2.8 billion a year earlier, driven overwhelmingly by the AI segment where it reached $15.8 billion. Space segment capex came in at $1.2 billion and Connectivity capex at $1.4 billion.
The AI division, spanning Grok, X, cloud infrastructure and advertising, posted revenue of $2.6 billion, up 247%, driven by new Cloud Services Agreements and Grok/X subscription growth.
The business generates compute-contract revenue from customers including Anthropic, Google and Reflection AI, though some recurring revenue has yet to be recognised.
The segment narrowed its operating loss 49% quarter-on-quarter to $1.3 billion, though SpaceX cautioned the unit needs sustained investment to turn profitable. It signed $14.1 billion in contracted Cloud Services Agreements and announced a $60 billion deal to acquire coding tool Cursor.
Connectivity, the Starlink-led segment, generated $4.3 billion in revenue, up 66%, with operating income up 79% to $1.7 billion. Starlink subscribers doubled to 12 million.
The Space segment posted revenue of $962 million, up 29% with an operating loss of $542 million as the company invested heavily in Starship.
SpaceX ended the quarter with $100 billion in cash and marketable securities, and a $47.5 billion backlog.
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