Editorials · Readers Voice
SpaceX's biggest win against AT&T, T-Mobile, and Verizon won't be a hybrid network
The wireless industry needs a jolt.
This article may contain personal views and opinion from the author.
SpaceX has spurred hope that competition will be revived. | Image by PhoneArena
As SpaceX cobbles together the pieces to build a next-generation telecom network, rivals are scrambling to keep their edge. The incumbents have formed a joint venture to back SpaceX's competitors and continue touting their long-held advantages. T-Mobile is revamping its brand strategy as it looks to branch out beyond wireless.
SpaceX's biggest challenge will be making its network more appealing to everyday customers. We asked our readers how they perceive the threat, and the responses were telling.
Bringing back competition
Of the 1,107 participants, 50% expect SpaceX to revive competition, while 28% believe it will end the Big Three's monopoly. Only 22% think it doesn't stand a chance against terrestrial providers.
SpaceX has since updated its plans and is now pursuing a widespread terrestrial buildout.
Poll
1107 Votes
How big a threat would SpaceX be to AT&T, T-Mobile, and Verizon?
It will end their monopoly
27.64%
It will revive competition
50.23%
It won't be comparable to terrestrial providers
22.13%
Shaking things up again
With razor-thin margins across the industry, AT&T, T-Mobile, and Verizon rarely engage in price wars. The most action we see from them is during the holiday season. For the rest of the year, they avoid stepping on each other's toes.
As a new entrant, SpaceX will likely offer aggressive introductory prices to lure customers away from the incumbents. Once subscribers start leaving in droves, the major providers have no choice but to revive their competitive spirit.
Everything is aligning
The Federal Communications Commission is moving ahead with regulations to support direct-to-device providers like SpaceX and AST SpaceMobile, much to the chagrin of legacy carriers. This regulatory backing is central to competitiveness in the industry.
Meanwhile, AST SpaceMobile is trying to catch up with SpaceX, though, to be clear, it isn't pursuing a standalone cellular network. Regardless, the connectivity landscape is shifting, and that alone is enough to put pressure on the Big Three.
SpaceX isn't backing down
Even now, some critics believe that SpaceX is making a play for an MVNO agreement. However, with the company allegedly in talks with tower companies, scooping up spectrum, and partnering with Qualcomm to procure network infrastructure, this argument is losing steam.
A fourth major player seems inevitable, and the industry will be better for it. AT&T, T-Mobile, and Verizon already cover most of the country. Satellites remain largely limited to edge use cases and sparsely populated, far-flung areas.
SpaceX's biggest win won't be its novel approach to building a network. It will be bringing real competition back to wireless.
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