It's increasingly looking like SpaceX's Starlink unit has set its sights on the telecom industry. Whether the company will strike a Mobile Virtual Network Operator (MVNO) deal with a facilities-based provider or just build out its own standalone network remains to be seen. While Starlink's broad entry into wireless poses a threat to AT&T and T-Mobile as well, Verizon could emerge as the biggest loser.
SpaceX wants to reach more mobile users
SpaceX has been growing Starlink subscribers at an impressive pace. | Image by SpaceX
Starlink, which uses satellites to provide internet connectivity, is SpaceX's most profitable unit. The company has already teamed up with T-Mobile to enable satellite connectivity on smartphones, ensuring users remain connected even in dead zones.
Now that it's the owner of its own spectrum and planning the launch of more capable V3 satellites, SpaceX seems to be nurturing mobile network ambitions. Whether that ultimately manifests as an independent network or an MVNO partnership with AT&T, T-Mobile, and Verizon is still anyone's guess.
Either way, SpaceX's branching out into mobile territory is bound to rattle the Big Three, and it could prove particularly lethal to Verizon.
Which carrier does SpaceX pose the biggest threat to?
AT&T, because it's the weakest of the three.
7.97%
T-Mobile, because it has lost its way.
11.21%
Verizon, because it's already struggling.
23.28%
All of them.
48.92%
None.
8.62%
464 Votes
Verizon's misplaced priorities
While Verizon's broadband business has been growing, the wireless segment is comparatively stagnant. That's despite the presence of only two real competitors.
Verizon is lugging around a massive debt load and pays a large dividend to shareholders. To cope, the company is discussing cutting capital expenditure (capex) to $16 billion this year.
In contrast, SpaceX spent $4.2 billion on connectivity last year, and its capital expenditure is growing.
In short, Verizon is already in danger of losing its grip on the wireless crown, and by pulling back on investment, it's making it easier for a relentless SpaceX to lure away its customers.
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The key investor takeaway is that Verizon is again stuck, focused on producing free cash flow and maintenance costs on the massive wireless network, while a new competitor will slowly buy off customers.
Stone Fox Capital, Registered Investment Advisor, June 2026
So many ifs
A standalone Starlink mobile network is a long way off. SpaceX doesn't currently have enough spectrum to go it alone, and an MVNO doesn't seem likely in the near future. Carriers have also established relationships with smartphone manufacturers, which could be a hurdle for SpaceX.
Besides, even if SpaceX enters the mobile space, there's no telling how well it will do, though one analysis sees it gaining 20 million subscribers in its first five years.
For reference, Verizon boasts 146.9 million customers, followed by T-Mobile at 142.4 million, and AT&T at 120.1 million.
A win for customers
While a fourth major carrier would mean slimmer profit margins for shareholders, it might finally restore some true competition in the industry. With T-Mobile and Verizon both pursuing efficiency, the giants have become risk-averse and would rather play nice with each other than let real market forces play out. SpaceX could give the industry the jolt it needs and consumers the relief they deserve.
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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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