SpaceX's ambitions to build a comprehensive mobile service have unsettled investors in the US wireless industry, according to reports. The company has outlined plans that could eventually pit its Starlink network against industry leaders Verizon, AT&T, and T-Mobile in a competitive struggle.

Through two transactions announced last year, SpaceX acquired 65 megahertz of wireless spectrum licenses from EchoStar for $19.6 billion, covering the AWS-3, AWS-4, and H-Block bands. On May 12, the US Federal Communications Commission officially approved the deal, providing the radio wave resources needed for Starlink to expand its mobile services.

SpaceX President Gwynne Shotwell stated during a post-earnings conference call: "The spectrum we purchased from EchoStar does include a terrestrial component, so we definitely intend to build out terrestrial services." She noted that the company would construct the necessary infrastructure to make Starlink a "true mobile service" and expects to win a significant number of customers from the three major wireless carriers. This marks the clearest signal yet from SpaceX that it plans to integrate its satellite network with ground infrastructure to offer broader wireless services, going beyond its current direct-to-device service for areas without cellular coverage.

Following the news, shares of Verizon, AT&T, and T-Mobile fell between 2.2% and 4% in after-hours trading. Starlink currently operates approximately 10,354 active satellites in orbit and has surpassed 10 million home broadband subscribers. Estimates suggest that by 2026, Starlink Mobile could add 52,000 new users daily, reaching over 25 million active users by year-end. The market SpaceX is targeting is valued at a massive $1.6 trillion.

However, analysts warn that transforming Starlink into a nationwide wireless business will require years of investment and execution. Over the past three decades, the three major US wireless operators have spent hundreds of billions of dollars acquiring spectrum licenses and building and upgrading their networks. MoffettNathanson analyst Craig Moffett remarked: "Unless Starlink can secure an MVNO agreement with one of the operators to provide baseline coverage, it's hard to imagine Starlink's direct-to-consumer service competing with carrier services within the next five years."

Facing pressure from SpaceX, the three major US operators have formed a rare alliance. In May 2026, AT&T, Verizon, and T-Mobile announced the creation of a joint venture to pool spectrum resources, develop unified technical standards, and build a satellite-ground interconnection service platform. The three companies, which have long been fierce competitors, are now collaborating for the first time, with their sights set squarely on Starlink.

David Baden of New Street Research believes that SpaceX's attempt to replicate everything ground operators have built over the past 30 years is misguided. Nevertheless, some investors think the market is underestimating the potential for disruption. David Wagner, a portfolio manager at Aptus Capital Advisors, noted that traditional wireless operators face the risk of being overtaken by SpaceX's willingness to innovate. Currently, through its partnership with T-Mobile, SpaceX uses Starlink satellites to provide direct-to-cell connectivity for compatible smartphones outside traditional cellular coverage, which currently complements rather than competes with operator networks.