SpaceX’s ambitious, expensive gamble to replace AT&T, T-Mobile, and Verizon
News Source
•2026-10-17T10:00:00-04:00
📰 What Happened
SpaceX wants to become a fourth big US mobile carrier. Last week it agreed to buy a large block of low-band spectrum, the old Nextel 800 MHz airwaves, to expand Starlink's phone service. It has already spent close to $20 billion on EchoStar spectrum, and the FCC approved 15,000 next-gen Starlink satellites.
On The Verge's Decoder podcast, analyst Walter Piecyk says the plan is serious, not a stunt. He also says it will be very expensive to pull off.
🔍 The Backstory
Satellites alone struggle to reach phones indoors or in cities, so SpaceX needs ground towers too. Piecyk says the conditions attached to its FCC approval made that clear. Low-band airwaves matter because they travel farther and cover more ground.
He argues the big carriers have badly mishandled the threat. Telecom history is full of companies that announced bold plans and then ran out of money before the network was built.
🎯 Why It Matters
A fourth carrier could mean more choice and better coverage in rural areas. But building a network costs billions, so any real change to your phone bill is years away.
SpaceX wants to become a fourth big US mobile carrier. Last week it agreed to buy a large block of low-band spectrum, the old Nextel 800 MHz airwaves, to expand Starlink's phone service. It has already spent close to $20 billion on EchoStar spectrum, and the FCC approved 15,000 next-gen Starlink satellites.
On The Verge's Decoder podcast, analyst Walter Piecyk says the plan is serious, not a stunt. He also says it will be very expensive to pull off.
Satellites alone struggle to reach phones indoors or in cities, so SpaceX needs ground towers too. Piecyk says the conditions attached to its FCC approval made that clear. Low-band airwaves matter because they travel farther and cover more ground.
He argues the big carriers have badly mishandled the threat. Telecom history is full of companies that announced bold plans and then ran out of money before the network was built.
A fourth carrier could mean more choice and better coverage in rural areas. But building a network costs billions, so any real change to your phone bill is years away.