SpaceX Targets 80,000 US Cell Sites, Intensifying Mobile Carrier Battle

SpaceX, Elon Musk's ambitious aerospace company, is reportedly in advanced talks to secure access to a staggering 80,000 cell sites across the United States. This aggressive manoeuvre, as detailed by Bloomberg News on October 22, 2026, marks a significant escalation in SpaceX's strategy to become a full-fledged national mobile carrier, directly challenging established players like Verizon, T-Mobile, and AT&T.

The report indicates that SpaceX is negotiating with major telecom infrastructure companies, including Crown Castle Inc., American Tower, and Vertical Bridge, for these critical ground-based assets. While Crown Castle CEO Chris Hillabrant, during an October 21 earnings call, confirmed his company is in discussions with "all relevant parties" regarding lease agreements, he declined to comment on specific customers like SpaceX. News of these discussions sent ripples through the market, with shares of Crown Castle, American Tower, and Vertical Bridge reportedly rising, while those of traditional carriers like AT&T, Verizon, and T-Mobile experienced a dip. Elon Musk Pledges 1 Share of SpaceX to Every US Child Next Year.

A Hybrid Connectivity Strategy Takes Shape

This reported pursuit of terrestrial cell sites underscores a burgeoning hybrid approach from SpaceX, aiming to combine its formidable Starlink satellite constellation with ground infrastructure. SpaceX President Gwynne Shotwell explicitly stated on October 21, 2026, that the company "definitely intend[s] to build out terrestrial components," including antennas on towers and rooftops. This ground network is crucial for enhancing indoor coverage and addressing connectivity challenges in dense urban environments where satellite-only solutions may face limitations. Elon Musk, during SpaceX's recent earnings call, echoed this sentiment, stating the company "will be building out our terrestrial networks so there's broad-based connectivity anywhere that SpaceX and Starlink are allowed to operate."

Starlink Direct to Cell: The Satellite Backbone

The terrestrial cell site initiative runs parallel to SpaceX's already advancing Starlink Direct to Cell (D2C) service. Launched commercially in the United States in partnership with T-Mobile (branded as "T-Satellite") in July 2025, and also available in New Zealand with One NZ since late 2024, this service enables standard, unmodified mobile phones to connect directly to Starlink satellites. Initially, the D2C service provides text messaging and voice call capabilities, with modest data speeds of around 2-4 Mbps per user, primarily serving as a vital lifeline in cellular dead zones.

However, SpaceX has far more ambitious plans for D2C. At the ITU Space Connect conference on February 24, 2026, SpaceX's satellite policy lead, Udrivolf Pica, unveiled a target of up to 150 Mbps user speeds for its next-generation D2C service. This significant upgrade is slated for initial testing in late 2027, with broader mass adoption anticipated by 2028. Achieving these speeds relies on a new 15,000-satellite constellation operating in Very Low Earth Orbit (VLEO) and substantial spectrum acquisitions, including a reported $17 billion agreement with EchoStar in late 2025 for AWS-4 and H-Block licenses.

Strategic Spectrum Acquisitions and Regulatory Milestones

SpaceX has been aggressively acquiring crucial spectrum holdings. On October 8, 2026, the company announced an agreement to acquire a nationwide portfolio of low-band 800 MHz spectrum licenses from Grain Management for approximately $8 billion, pending FCC approval. Low-band spectrum is particularly valuable for its ability to travel farther and penetrate buildings, addressing a key challenge for satellite-only connectivity. Further underscoring its dual strategy, the FCC also approved SpaceX's acquisition of three spectrum licenses in the 1695–1710 MHz band from Tristar, with the order released on October 21, 2026, granting waivers for their use in satellite communications.

The Federal Communications Commission has also given SpaceX a crucial green light to deploy 15,000 direct-to-device satellites, a separate constellation from its existing Starlink network, with the authorization granted on October 7, 2026. Importantly, the FCC waived a rule that previously required satellite companies to lease spectrum from a terrestrial partner, empowering SpaceX to use its own spectrum and position itself as a direct competitor.

Market Impact and Future Outlook

The reported talks for 80,000 cell sites, combined with the advancements in Starlink Direct to Cell and recent spectrum acquisitions, suggest a comprehensive strategy by SpaceX to carve out a significant share in the US mobile market. Experts like Ram Chandra Sachan, a network and security architect in Bengaluru, India, view the FCC's approval for deploying 15,000 satellites for a D2D network as a significant move that gives SpaceX the scale to become a credible nationwide full-service telecom provider. While building a nationwide terrestrial network could cost over $80 billion, according to TD Cowen estimates, the potential for SpaceX to become a "fourth wireless carrier" represents a seismic shift for the telecommunications industry globally. SpaceX Is No Longer Just a Rocket Company; Elon Musk’s AI Business Overtakes Starlink.

As of now, the talks regarding cell site access are ongoing, and no definitive agreements, pricing, or product launch dates have been officially confirmed. However, the clear intent from SpaceX points towards a future where hybrid satellite-terrestrial networks redefine ubiquitous mobile connectivity.

Disclaimer: AI tools assisted in compiling the foundational data and research for this report. The final content was reviewed, edited and verified by human editors at LatestLY.

(The above story first appeared on LatestLY on Oct 23, 2026 09:07 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).