SpaceX is reportedly in talks with tower companies to secure access to at least 80,000 US sites, as it presses ahead with plans to build a nationwide mobile network to rival incumbents AT&T, Verizon and T-Mobile US.
According to Bloomberg, major US tower operator Crown Castle is among the companies discussing leases with SpaceX, with potential deals worth billions of dollars.
On an earnings call earlier this week, Crown Castle CEO Chris Hillabrant said the company was holding talks across the satellite telecommunications sector but declined to discuss specific customers, noting: “You can assume that we’re talking to all parties.”
The tower agreements would form a key part of SpaceX’s plan to combine satellite connectivity with ground-based infrastructure to establish a nationwide mobile network.
It is targeting early 2028 for a launch for its own direct-to-device (D2D) service, following the deployment of its second generation Starlink Mobile constellation expected next year.
Earlier this month, the company agreed to acquire up to 14MHz of paired spectrum in the 800MHz band from Grain Management, in a move chief Elon Musk said was “the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America”.
It also secured Federal Communications Commission (FCC) approval to launch 15,000 next-generation satellites for D2D services.
SpaceX president Gwynne Shotwell said on the company’s Q3 earnings call the spectrum deal and satellite approval “pave the way for Starlink Mobile to become a major mobile carrier in the US”.
Rivals SpaceX’s approach has drawn scepticism from some parties over whether it can match the coverage and performance of established networks.
AT&T CEO John Stankey argued earlier this week building a network capable of matching incumbent performance would take time. “I think it takes a lot of years and a huge level of investment to get to the kind of performance levels that customers have become accustomed to in scaled networks,” he said.
Stankey also highlighted AT&T’s extensive low-band spectrum holdings and existing infrastructure, arguing the operator already serves customers across established coverage areas.
Meanwhile, T-Mobile CEO Srini Gopalan told the Financial Times in August that the threat from satellite providers had been exaggerated, questioning what consumer problems a new service would solve.
Mobile World Live (MWL) brings you our top three picks of the week, as Microsoft backed out of its UK data centre deal with Nscale, four European telco heavyweights confirmed plans to explore a joint satellite spectrum bid and SpaceX targeted a launch in 2028 for its direct-to-device (D2D) service.
Microsoft pulls out of Nscale UK data centre deal
What happened: Microsoft reportedly pulled out of an agreement to lease capacity at Nscale’s planned AI data centre in Loughton, Essex, after delays to its electricity connection pushed expected supply into the 2030s.
Why it matters: The 50MW facility was announced in 2025 as part of Nscale’s £2.5 billion UK investment commitment. Microsoft planned to occupy the entire site and deploy a supercomputer containing around 23,000 Nvidia GB300 chips. According to Reuters, Nscale said it remained “committed to both the Loughton project and the UK” and was exploring alternative power sources. It added its wider relationship with Microsoft remained strong, with the companies continuing to work together in Norway, Portugal and the US.
In February, an investigation by The Guardian found the Loughton site was still operating as a scaffolding yard, exposing a widening gap between the UK’s AI investment announcements and its ability to deliver the infrastructure required. Roderick Beck, a subsea and network capacity specialist, and VP of business development at UCC Hudson Bore, said “the big and growing order backlogs in the AI data centre sector reflect not just strong demand, but the difficulty of building these data centres and equipping them”. He added: “The construction, power, and GPU supply chains are extremely stressed.” Meanwhile, David Johnson, CEO of Greater London Industrial, noted “this is not an isolated case”, pointing to research from Roadnight Taylor which found half of UK data centre developers expected grid connections within one to two years, while many faced waits of three to eight years. He concluded: “Grid capacity is now as important to growth as planning consent. We need to treat it that way.”
European operators confirm satellite spectrum move
What happened: Deutsche Telekom, Orange, Telefonica and Vodafone Group signed a letter of intent to explore a joint bid for spectrum earmarked for Mobile Satellite Services (MSS), as operators look to expand D2D connectivity.
Why it matters: The quartet stated a joint approach would support open, non-discriminatory access to satellite connectivity, while reducing market fragmentation and boosting consumer choice. They plan to establish ground infrastructure, coordination and monitoring functions without investing directly in a satellite constellation. A satellite partner has yet to be selected.
Counterpoint Research senior analyst Subhadip Roy noted the move comes ahead of the expiry of existing 2GHz spectrum authorisations held by Viasat and EchoStar in May 2027, with a new allocation framework being developed by the European Commission. He added the move takes D2D beyond satellite partnerships to the question of “who controls spectrum and how satellite connectivity becomes part of mobile networks”. Meanwhile, PP Foresight’s Paolo Pescatore said success depends on making satellite coverage “a seamless extension of mobile connectivity”. He added execution, device compatibility and pricing must give customers “a compelling reason to pay, along with reassurance they can stay connected in more places”.
SpaceX targets early 2028 for own D2D service launch
What happened: SpaceX revealed plans to launch its own D2D service in early 2028, following deployment of its second-generation Starlink Mobile satellites in 2027 and integration of additional spectrum.
Why it matters: On the company’s Q3 earnings call, president Gwynne Shotwell said its spectrum acquisition and the Federal Communications Commission’s approval to launch 15,000 next-generation V2 satellites would “pave the way for Starlink Mobile to become a major mobile carrier in the US”. Earlier this month, SpaceX agreed to buy up to 14MHz of paired spectrum in the 800MHz band from Grain Management. The company also plans to use ground-based femtocells to complement satellite coverage.
Ananth Theivendrapoopathy, global head of pricing, product and commercial strategy at Lycamobile Group, said SpaceX could compete “without having to replicate the entire physical infrastructure of traditional mobile operators”, adding this could provide “a significant advantage through a different network cost structure”, although urban capacity and indoor coverage challenges remain. He argued the move also raises regulatory questions over whether satellite providers competing directly with mobile operators should face comparable regulatory obligations. He noted Deutsche Telekom, Orange, Telefonica and Vodafone Group’s joint approach to satellite connectivity, alongside mounting calls for European sovereignty, become “important considerations”.
Separately this week, Elon Musk revealed plans to explore a potential merger between SpaceX and Tesla in a combination that could bring satellite connectivity, vehicles and AI infrastructure under one umbrella.
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