SpaceX is in negotiations with major U.S. communications tower operators to secure usage rights for at least 80,000 ground-based towers across the country, aiming to build a nationwide mobile communications network and directly challenge the three traditional carriers AT&T, Verizon, and T-Mobile.
According to information disclosed on October 22, SpaceX is discussing tower lease agreements with communications infrastructure companies including Crown Castle, with the potential transaction value reaching billions of dollars. Combined with previously acquired low-band radio spectrum and the 15,000 direct-to-cell satellites approved for deployment by the Federal Communications Commission (FCC), SpaceX is attempting to expand Starlink from a satellite internet service into an independent nationwide mobile communications network.
Negotiating to Lease 80,000 Ground Towers, Potential Contract Value in the Billions
According to disclosures, SpaceX is in talks with major U.S. communications tower operators including Crown Castle, seeking usage rights for at least 80,000 ground-based towers. These facilities would be combined with SpaceX's existing satellite network to form hybrid communications infrastructure covering urban, suburban, and remote areas.
Crown Castle CEO Chris Hillabrant, during the company's earnings call on Wednesday, did not directly address the specific negotiations with SpaceX but confirmed that the company is in contact with all major satellite communications service providers exploring terrestrial communications deployments.
Traditional mobile operators typically lease tower and related equipment space to build wireless networks, reducing the cost of independently constructing infrastructure. SpaceX plans to adopt a similar model, leasing existing ground towers to integrate its satellite network with traditional cellular communications systems, without having to build a nationwide ground station network entirely from scratch.
Considering the potential number of leased sites exceeds 80,000, the total value of the related agreements could reach billions of dollars. However, no formal contract has been announced by either party yet, and specific lease terms, site counts, and funding arrangements remain to be determined.
FCC Approves Deployment of 15,000 Direct-to-Cell Satellites, Low-Band Spectrum Acquisition Provides Foundation
SpaceX has previously received approval from the Federal Communications Commission to deploy 15,000 satellites specifically designed for direct-to-cell communications, enabling ordinary smartphones to connect directly to the satellite network without relying on traditional ground-based towers.
At the same time, SpaceX has recently acquired low-band radio spectrum assets, providing the necessary spectrum resources for building an independent mobile communications network. Compared to high-band spectrum, low-band signals typically have broader coverage and stronger building penetration capabilities, making them suitable for providing wide-area mobile communications services.
However, satellite direct-to-cell technology differs from traditional ground-based cellular networks in terms of communications capacity, signal density, and urban coverage capability. Particularly in high-population-density areas, large numbers of users simultaneously using mobile networks place higher demands on communications capacity and connection stability.
Therefore, SpaceX plans to combine satellite communications with ground-based towers, with ground facilities handling high-density communications needs in urban and suburban areas, while the satellite system supplements remote areas and regions that traditional networks struggle to cover. This hybrid architecture is expected to enable SpaceX to provide wide-area network coverage while improving the stability and capacity of mobile broadband services.
Directly Challenging the Big Three U.S. Carriers, Crown Castle Shares Surge Nearly 10% After Hours
SpaceX CEO Elon Musk has previously identified entry into the traditional mobile communications market as a new business direction for the company. With the low-band spectrum acquisition, direct-to-cell satellite deployment, and ground tower lease negotiations all advancing, SpaceX is building the infrastructure needed to independently provide mobile communications services.
If the related plans are successfully implemented, SpaceX will have the opportunity to become the fourth major mobile carrier with nationwide network coverage capability in the United States, after AT&T, Verizon, and T-Mobile.
Unlike existing carriers that primarily rely on ground-based cellular networks, SpaceX will be able to leverage the Starlink satellite constellation to expand coverage in remote areas and enhance network capacity in urban and densely populated areas through ground-based towers.
Capital markets quickly reacted to the related news. On October 22, Crown Castle shares rose 0.23% during regular trading hours, closing at $78.83, then surged approximately 8.7% after hours to $85.67, reflecting investors' positive expectations for a potential large-scale tower lease contract. In comparison, SpaceX shares rose only about 1% after hours, following a 9.13% decline during regular trading hours.
For communications infrastructure operators like Crown Castle, large-scale leasing of existing towers by SpaceX would bring new long-term lease demand. For SpaceX, obtaining usage rights to 80,000 ground-based towers would mean the company taking an important step from being a satellite broadband operator to becoming an integrated mobile communications operator. However, the plan is still in the negotiation stage, and whether it can ultimately form a nationwide commercial network depends on tower lease agreements, spectrum deployment, and the progress of integrating satellite and ground networks.
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