Qualcomm to supply network hardware for SpaceX's Starlink Mobile

SpaceX and Qualcomm reached a deal on Wednesday to build out the terrestrial network for Starlink Mobile. The agreement pairs satellite connectivity with ground-based cellular infrastructure to create a direct rival for Verizon, AT&T, and T-Mobile.

Qualcomm will provide its Dragonwing cellular infrastructure hardware and software for SpaceX base stations. The system is designed to support high-capacity coverage alongside existing satellite services. A rollout is scheduled to begin next year, though financial terms of the multiyear contract were not disclosed.

Durga Malladi, an executive vice president at Qualcomm, said the partnership builds "world-leading cellular infrastructure in the United States." She noted the arrangement advances 5G today while laying the foundation for AI-native 6G in the future.

Starlink already drives a large portion of SpaceX's financial performance. The satellite division generated 36% of company revenue and 85% of operating profit in the third quarter. However, direct-to-device mobile services have remained limited because satellites cannot yet match the voice, video, and data coverage of traditional carriers on popular smartphones.

SpaceX has moved quickly to close that gap. Last month, the company announced a purchase of a nationwide spectrum portfolio in the 800 MHz band. The news caused shares of major US carriers to drop. Earlier this week, reports indicated SpaceX is in talks to acquire EchoStar's Boost Mobile.

SpaceX went public in June in the largest IPO on record. The company is now valued at nearly $2 trillion. It plans to establish tens of thousands of new cell sites using Qualcomm's technology. SpaceX has not yet named cell tower partners or specified how many new towers will be required.

Qualcomm has focused on 5G infrastructure since 2020, moving beyond its traditional role in device modems. SpaceX joins a list of prominent infrastructure partners that includes Verizon, Dish, and Vodafone.