SpaceX has picked Qualcomm to help build its own phone network in the United States. Work on the towers is set to start in 2027.
The deal was shared on Wednesday, 4 November. Qualcomm will supply radio equipment, chips and software for a network called Starlink Mobile. Neither company said how much the deal is worth. But Qualcomm told Reuters that it is its biggest 5G deal yet.
Towers on the ground, satellites in the sky
When you make a call, your phone talks to a nearby cell site. That is a tower or box with radios on it. Inside sits a base station, the brain that passes your call along. 5G is the newest kind of mobile network.
SpaceX is best known for rockets and Starlink satellites. Satellites already help phones in other ways. Our story on how GPS finds you shows one of them.
Now SpaceX wants towers too. It plans to put up tens of thousands of these sites across the US, over several years. Qualcomm said the towers will work alongside Starlink's satellites, not replace them, CNBC reported.
From phone chips to phone towers
Qualcomm is famous for the chips inside smartphones. This deal pushes it deeper into the other end of the call: the towers.
It is not starting from zero. It has done tower deals before, with Verizon, Dish and Vodafone.
Its tower chips aim signals toward each phone. That is called beamforming. Qualcomm says it helps SpaceX use its airwaves better.
Three giants and a newcomer
In the US, three big companies run most phone networks: AT&T, Verizon and T-Mobile. SpaceX wants to become a fourth.
To do that, a network needs airwaves, called spectrum. SpaceX has been buying the right to use more of them. It has also talked to companies that own cell towers.
Not everyone is sure it will work. Building a national network costs a huge amount of money. Reuters noted that questions remain about how SpaceX will pay to take on the big three.
Why phone users far from America may care
Qualcomm chips sit inside phones all over the world. Now the company wants a bigger role in the towers those phones talk to. It has been trying to grow beyond phones for a while.
Its tower gear already helps run 5G in Japan and Vietnam. In this business, it competes with chipmakers such as Marvell, Broadcom and Intel. A deal this size puts it on a much bigger stage.
The network will also be built in steps, Qualcomm says. The first step is towers on the ground.
Dates to circle
- 2027: the first towers are due to go up in the US.
- The next few years: SpaceX aims to reach tens of thousands of sites.
- The money question: watch whether SpaceX shares how it will pay for the build.
