Competition: SpaceX's Starlink Mobile service is taking on the major telecom operators

SpaceX has launched its upcoming mobile service, Starlink Mobile, directly challenging the largest American telecommunications companies. The move marks a major shift in the industry as the company aims to capture market share from giants such as AT&T, Verizon, and T-Mobile US, which collectively generate approximately $600 billion in annual revenue. Speaking during the second-quarter earnings presentation, Gwynne Shotwell, president of SpaceX, emphasized that the new service will offer tenfold better capabilities through the deployment of satellites of the latest generation and access to frequency spectrum acquired from EchoStar. Commercial launch of the service is planned for late this year, according to the technology portal Mobile World Live. Currently, the direct connection system operates with five megahertz bandwidth via local partners, while a new agreement grants SpaceX access to 65 megahertz bandwidth. The enhanced network already successfully supports voice and video calls through apps such as Signal and WhatsApp. The approach to infrastructure setup is innovative. Instead of building traditional base stations, SpaceX plans to utilize existing satellite equipment to provide broadband internet. Shotwell explained that the company can simply install smaller cellular base stations on the equipment that holds the satellite orbit. This method allows the company to place a network of small cells throughout the country exactly where they are needed, without requiring billions of dollars in upfront investments in conventional infrastructure. Elon Musk, chief executive officer of SpaceX, further elaborated on these plans. He highlighted that Starlink antennas are mostly located on rooftops of homes and businesses, providing unobstructed views and excellent direct connectivity with mobile phones on the ground. Musk expects the service to deliver “better and higher bandwidth than what current operators currently provide.” The service will also eliminate dead zones and maintain functionality during natural disasters, as the satellite environment is significantly more stable compared to terrestrial infrastructure. SpaceX recorded $7.8 billion in revenue during the second quarter, representing a 92 percent increase compared to the same period last year. The company’s net loss decreased to $541 million. Capital expenditures surged to $18.4 billion, with $15.8 billion allocated to the artificial intelligence division. This division, which includes projects such as Grok, the X network, and cloud infrastructure, generated $2.6 billion in revenue. The connectivity segment led by Starlink contributed $4.3 billion in revenue and increased profit from operations by 79 percent to $1.7 billion. The number of customers for the Starlink service doubled to 12 million. Meanwhile, the space segment brought in $962 million in revenue, although it incurred a $542 million operating loss due to substantial investments in the development of the Starship vehicle. The company ended the quarter with $100 billion in cash and market value securities.