Elon Musk is coming for your cell phone network.
SpaceX, which is trying to fill a hole in its airwaves crucial for a full-service wireless network, has been hunting for spectrum that works well in cities and dense areas, according to people familiar with the matter. The company is considering buying competitors to acquire the spectrum or competing at a government auction set for next year, the people said.
It is the most recent sign that Musk’s Starlink plans to compete directly with AT&T, Verizon, and T-Mobile. Musk’s SpaceX has taken other steps into the conventional telecommunications business. President Gwynne Shotwell demonstrated a prototype mobile handset to some investors earlier this year, the Wall Street Journal reported. The Financial Times also reported that Shotwell had expressed interest in building their own terrestrial networks.
Shares of AT&T, T-Mobile, and Verizon fell 4% in response to Semafor’s report.
SpaceX wants to grow its Starlink mobile business, which analysts expect to hit $15 billion in revenue this year and which SpaceX, in its IPO pitch to investors, pegged at a $740 billion market. SpaceX is working on new technologies to improve Starlink’s coverage in tree-covered areas and inside buildings, and Musk has also said he’s considered building a hybrid satellite-terrestrial network to bolster the service.
Meanwhile, the big three mobile providers have spent $110 billion over the last decade hoovering up most of the US’ low-band spectrum.
Asked directly about whether he would purchase a carrier, Musk in September 2025 said on the All-In podcast: “It’s not out of the question. I suppose that may happen.” Such a transaction would be in the hundreds of billions of dollars even before tacking on a deal premium, and the incumbent carriers are generally not seen as sellers.
SpaceX’s plans are fluid, and the company could ultimately choose not to follow through, the people said. Building a network is capital intensive, requiring continuous, steady investment in both towers and spectrum —- drawing capital away from businesses that investors more richly reward, chiefly AI.
SpaceX did not return a request for comment.
That C-band spectrum is set to go up for auction next year and has both satellite and terrestrial applications. If SpaceX competes in those auctions, it could force legacy carriers to incur unsustainable amounts of debt —they already have high costs of capital and are more debt-laden than SpaceX. SpaceX could opt to issue new shares to cover the cost, structuring it similarly to when it bought Cursor in a $60 billion all-stock deal last month.
Musk also bought spectrum licenses from Charlie Ergen’s Echostar in a $17 billion deal.