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Full circle: EchoStar could be the reason SpaceX Starlink becomes the fourth carrier

SpaceX should rise to the occasion and compete with AT&T, T-Mobile, and Verizon.

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Anam Hamid
By · Senior News and Deals Writer
This article may contain personal views and opinion from the author.
spacex fourth carrier
Why buy a carrier when you can build one?
With EchoStar bowing out of the facilities-based carrier race, AT&T, T-Mobile, and Verizon have only grown more powerful. From longer store wait times to forceful app mandates, customers are already feeling the effects of the emboldened oligopoly. Launching a fourth carrier would be a staggering financial endeavor, but perhaps not for a trillionaire.

Putting spectrum to good use



Ever since SpaceX secured spectrum licenses from EchoStar and signaled a desire to acquire even more airwaves, there has only been one question on everyone's mind: Is its Starlink subsidiary gunning to enter the cellular space?

After all, the company already beams connectivity through satellites, so it might as well seize greater control of the network equation.

Granted, SpaceX doesn't currently hold enough spectrum to build a standalone carrier. However, it can aggressively participate in the ongoing AWS-3 auction and may soon eye upper C-band licenses.

We need a fourth carrier


Regulators originally envisioned Boost Mobile stepping up as the fourth facilities-based carrier, but EchoStar wasn't up for the task.

In the absence of a true fourth player, the Big Three have grown complacent. A clear example of that is the collective reluctance to engage in the kind of price wars that define a healthy market.

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Compounding these issues, many of the Mobile Virtual Network Operators (MVNOs) that budget-conscious customers rely on are also owned by these same three giants.

They aren't just controlling the terrestrial trajectory either. Despite not being space companies, the titans are trying to dictate how the satellite industry grows.

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Your enemy's enemy is your friend


SpaceX CEO Elon Musk has likely received more internet hate than congratulations for being the world's first trillionaire. Whether you like Musk or not, he is currently the only person who can make a fourth carrier happen.

It helps that AT&T, T-Mobile, and Verizon have declined to do an MVNO with Starlink, leaving Musk with few options but to build or buy his way in.

Interestingly, some analysts argue he should buy one of the Big Three to maintain the current three-company structure. Otherwise, if a fourth company enters the fray, the market could become too competitive, resulting in lower prices and, consequently, lower profits for telecom companies.

That might be a loss for shareholders, but it would be a win for wireless consumers.

Why should SpaceX pull the trigger?


While I wouldn't put it past Musk to launch a network out of pure spite (which would be the best reason, imo), Starlink could actually benefit from a Mobile Network Operator (MNO). For starters, Starlink is already SpaceX's most profitable unit, and adding a terrestrial network to the equation would deepen its influence.

And while this might be looking too far into the future, telecom companies are poised to play an instrumental role in the AI era. As AI shifts from basic chatbots to real-world infrastructure, SpaceX's xAI unit would heavily benefit from an intelligent network. With Starlink also covering oceans, deserts, and other remote areas the Big Three don't reach, the company could be the default choice for autonomous machines in far-flung areas.

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