Elon Musk's space company SpaceX is partnering with Qualcomm to build its own nationwide terrestrial 5G mobile network in the United States. The strategy is to complement the weaknesses of its existing low Earth orbit satellite communications network, particularly coverage gaps in densely populated urban areas and indoors, with terrestrial base stations and fully commercialize its independent mobile service, Starlink Mobile.
Qualcomm announced on Nov. 4 (local time) that it had signed a multiyear equipment supply agreement with SpaceX and would begin gradually installing tens of thousands of 5G base stations across the United States next year. Qualcomm will supply its Dragonwing platform chipsets, designed for low-power, high-efficiency processing of large volumes of data at base stations, along with telecommunications software.
The partnership with Qualcomm came after SpaceX shifted toward building its own network following rejections from major U.S. mobile carriers, including Verizon, AT&T and T-Mobile, when it sought access to their terrestrial networks through arrangements such as mobile virtual network operator (MVNO) agreements and roaming partnerships.
In preparation, SpaceX recently agreed to acquire low-band 800 MHz spectrum, which offers strong building penetration, for $8 billion (approximately KRW10.7 trillion). The company has also been negotiating network access and a potential acquisition involving Boost Mobile, the mobile virtual network operator subsidiary of EchoStar.
SpaceX's decision to undertake large-scale terrestrial network infrastructure construction is aimed at overcoming the physical limitations of satellite communications. While low Earth orbit satellites offer advantages in connecting remote islands, mountainous regions and maritime areas, they face limitations in penetrating thick concrete walls and handling surging data traffic in densely populated areas.
“We will build the first-ever nationwide unified communications network that fully integrates satellite and terrestrial networks, ensuring uninterrupted connectivity wherever users are,” said Michael Nicolls, senior vice president of Starlink at SpaceX.
“Together with SpaceX, we will build world-class 5G wireless infrastructure and lay the foundation for the transition to AI-powered 6G communications in the future,” said Durga Malladi, vice president of Qualcomm.
Starlink is currently a core revenue driver for SpaceX, accounting for more than one-third of the company's total revenue and generating 85% of its operating profit.
