Home
News
You are here

SpaceX pokes holes in AT&T, T-Mobile, and Verizon's narrative

SpaceX can bypass T-Mobile if Elon Musk decides to do so.

By Anam Hamid

Updated: May 21, 2026, 10:59 AM

SpaceX notes that terrestrial networks aren't without their flaws. | Image by PhoneArena

SpaceX, the company behind the Starlink satellite constellation powering T-Mobile's T-Satellite service, dropped the filing for its initial public offering on Wednesday. The disclosure revealed several previously unknown details that show the Big Three may have miscalculated its true trajectory.

What's glaringly obvious is that AT&T, T-Mobile, and Verizon will need to do a lot more than form an alliance or downplay satellite tech if they want to keep SpaceX from eating their lunch.

SpaceX has 9,600 Starlink broadband and mobile satellites in low-Earth orbit (LEO)

SpaceX has already partnered with 30 global network operators to conquer dead zones. Its satellite-to-mobile constellation is a world-first, but it's not stopping there.

The company currently relies on V1 Mobile satellites to support messaging, over-the-top voice services like WhatsApp and FaceTime, and light data. There are 650 V1 satellites in orbit right now, serving 7.4 million devices monthly across 30 countries.

The real game-changer drops in 2027 when SpaceX starts deploying next-generation V2 satellites capable of handling broadband data and IoT connectivity.

The next-gen Starlink satellites are more powerful. | Image by SpaceX

Starlink Mobile depends on spectrum, and the company recently purchased AWS-4 and H-block spectrum licenses from EchoStar. The deal wraps up in late 2027, perfectly timing the launch of V2 services.

Bypassing carriers

SpaceX will have to stick with carriers a little longer. | Image by SpaceX

While SpaceX acknowledges that the success of Starlink Mobile depends in part on carrier partnerships, it didn't rule out using its own spectrum holdings to offer 5G-like connectivity.

However, existing smartphones do not fully support the NR-NTN (New Radio Non-Terrestrial Network) cellular standard needed for satellite-native 5G. Because SpaceX lacks direct deals with smartphone manufacturers, it still needs network partners to drive consumer adoption.

Regardless, the company's eventual goal is to provide satellite-to-mobile service that doesn't rely on traditional networks at all.

SpaceX points out that terrestrial networks are plagued by the same limitations they have faced since their inception. Land-based infrastructure only covers 20% of the Earth's surface, leaving remote, difficult, and economically unviable areas stranded.

Even in well-connected zones, US wireless customers experience issues in one out of every 11 mobile interactions, per a J.D. Power U.S. Wireless Network Quality Performance Study.

According to SpaceX, LEO constellations represent "a paradigm shift" that reduces dependence on land-based networks. That shift is becoming vital as telecom companies slash network deployment spending amid slowing financial growth.

Would SpaceX flying solo be beneficial for the market?

The core message

SpaceX is under no illusion that satellite-to-mobile offerings will completely replace land-based networks. However, it does assert that the service has evolved from a backup option to a meaningful complement to terrestrial networks.

For now, the company will continue its partnership with network operators instead of flying solo.

SpaceX can leave T-Mobile out

AT&T, T-Mobile, and Verizon have been dismissing direct-to-device (D2D) tech as a low-utility service. Yet, ironically, they have teamed up to back struggling entrants like AST SpaceMobile to try and counter SpaceX's dominance.

As Investing.com points out, even though the Big Three claim to reach 99% of the US population, their coverage is highly concentrated. They have essentially abandoned 500,000 square miles of US land to dead zones. Thus, satellite connectivity isn't quite the ancillary service they are making it out to be.

They are right to be intimidated, considering SpaceX controls 90% of the commercial satellite broadband market.

While Elon Musk may have no near-term ambitions of cutting T-Mobile out of the loop, the SpaceX filing makes it clear that there is no stopping him from doing so.

$20 /mo

$25

$5 off (20%)

Offer Ends 6.1.2026 at 11.59pm ET. New members get $5/mo off the $25/mg Visible plan, $35/mo Visible+ plan, or $45/mo Visible+ Pro plan for the first 12 months. Promo code FRESHSTART required at checkout.

Buy at Visible

View Full Bio

Anam Hamid is a computer scientist turned tech journalist who has a keen interest in the tech world, with a particular focus on smartphones and tablets. She has previously written for Android Headlines and has also been a ghostwriter for several tech and car publications. Anam is not a tech hoarder and believes in using her gadgets for as long as possible. She is concerned about smartphone addiction and its impact on future generations, but she also appreciates the convenience that phones have brought into our lives. Anam is excited about technological advancements like folding screens and under-display sensors, and she often wonders about the future of technology. She values the overall experience of a device more than its individual specs and admires companies that deliver durable, high-quality products. In her free time, Anam enjoys reading, scrolling through Reddit and Instagram, and occasionally refreshing her programming skills through tutorials.

Read the latest from Anam Hamid