SpaceX is playing the long game. | Image by SpaceX
SpaceX wants a piece of the terrestrial telecom market, but AT&T, T-Mobile, and Verizon are deploying every weapon in their arsenal to block that from happening. From flat-out refusing Mobile Virtual Network Operator (MVNO) deals to forming a satellite alliance to prop up SpaceX's fledgling competition, the Big Three are desperate to curb SpaceX's ambitions. The rocket company is playing its cards carefully, laying the groundwork to get the legacy providers to acquiesce to its demands.
AT&T, T-Mobile, and Verizon can shrug off SpaceX... for now
SpaceX's grand ambitions. | Image by SpaceX
As reported by Light Reading, research company MoffettNathanson has been keeping a close watch on SpaceX and might have figured out what it's up to.
MoffettNathanson says that pinning down what exactly Starlink is planning is tricky.
While SpaceX said it bought EchoStar's spectrum for its next-gen direct-to-device (D2D) service, MoffettNathanson isn't buying that. Most of that spectrum covers metropolitan markets, which is wasteful if the company only wants to provide service in rural deadzones.
The spectrum isn't enough to build a nationwide terrestrial network, which would be a costly undertaking anyway.
SpaceX may bid in the upper C-band auction, but it won't be able to snap up all of the airwaves. Besides, the upper C-band isn't that valuable due to its propagation restrictions. In any case, the licenses won't be usable until December 2030 at the earliest.
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Purchasing a Big Three carrier would invite regulatory scrutiny and could hurt SpaceX's valuation.
There is no back door route to the MVNO.
MoffettNathanson analysts, July 2026
The long game
An MVNO deal is the only plausible path, but AT&T, T-Mobile, and Verizon aren't open to one. Even the rumored deal with Charter would require SpaceX to persuade Verizon to keep the MVNO deal intact.
In every scenario, SpaceX is at the mercy of the major carriers, who don't want to let it in.
SpaceX seems to be hoarding spectrum to use as a bargaining chip to win an MVNO deal. Comcast and Charter took the same route to lease capacity from Verizon.
Absent the option of acquiring its way into an MVNO agreement that already exists, the most likely path for SpaceX to pry that door open for an MVNO is for Starlink to assemble a collection of tradeable assets that it can use to negotiate for an MVNO deal. That most likely means… spectrum.
MoffettNathanson analysts, July 2026
What should SpaceX do?
A stabilizing force
While SpaceX may not emerge as the fourth carrier anytime soon, its entry into the wireless space could put much-needed pressure on the major providers. AT&T, T-Mobile, and Verizon all raised prices this year. They have also faced accusations of prioritizing their in-house prepaid brands over independent operators.
The Big Three are calling all the shots, and for consumers, that doesn't have a nice ring to it.
Uncertainty
SpaceX stayed mostly on the sidelines in the recent AWS-3 auction, while T-Mobile and Verizon walked away as winners. This indicates the company is not that enthusiastic about collecting spectrum licenses, suggesting once again that it isn't exactly interested in having its own network.
It will build up its collection over time, but most likely to use as leverage.
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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.
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