29 October 2026
Will SpaceX really roll out a terrestrial network in the US?
SpaceX is assembling spectrum that could enable it to turn Starlink Mobile into a terrestrial US operator, but building a competitive network will require yet more spectrum and potentially over a hundred billion dollars in investment. Dish’s stranded network could offer a shortcut; but the question remains whether SpaceX genuinely intends to build a nationwide mobile network, or whether its recent manoeuvrings are intended to strengthen its hand in negotiations over an MVNO agreement or acquisition.
SpaceX’s spectrum acquisitions suggest terrestrial ambitions
SpaceX announced two major spectrum deals with EchoStar in late 2025, covering AWS-4, AWS-3 and H Block spectrum. More recently, it agreed to acquire up to 2×7MHz of 800MHz spectrum from Grain Management. In its announcement, SpaceX reconfirmed its intention to combine its satellite-to-mobile constellation with an “advanced terrestrial deployment”1.
Despite these acquisitions, SpaceX’s spectrum holdings are still significantly smaller than the three major carriers, and it will need to close this gap if it’s serious about Starlink Mobile competing as a nationwide fourth operator. It may be eyeing Auction 115, scheduled for mid-2027 and offering 160MHz of upper C-band spectrum, as an opportunity to expand its mid-band holdings.
SpaceX’s plan for a terrestrial Starlink network
SpaceX briefly discussed its terrestrial deployment plans in its recent earnings calls, but details remain scarce. In Q2, it described plans to deploy femtocells, which are small low-power base stations, alongside Starlink user terminals2.
This strategy aims to leverage Starlink’s existing customer base to establish a terrestrial footprint. However, there is considerable scepticism over whether a network reliant on femtocells would be viable3. Indoor units would generally cover little beyond the host premises, while outdoor cells capable of serving surrounding areas would require more powerful equipment, suitable antennas, reliable power and potentially local permitting. Starlink terminals are also concentrated in rural areas, while mobile traffic is disproportionately generated in urban areas.
SpaceX is reportedly aiming to secure at least 80 000 cell sites and is in discussions with major tower companies, including Crown Castle. This suggests that SpaceX recognises that a more conventional macro network will be required alongside any femtocell deployment.
Could DISH’s network offer a deployment shortcut?
Acquiring some of DISH Wireless’s network assets is one potential route through which SpaceX could accelerate Starlink’s terrestrial rollout. DISH attempted to establish itself as a fourth major US carrier following the T-Mobile–Sprint merger in 2020, using spectrum and subscribers divested as part of the merger. However, it struggled to meet deployment targets and grow its customer base.
In late 2025, DISH and its parent company, EchoStar, sold the bulk of their spectrum holdings to AT&T and SpaceX. DISH subsequently filed for bankruptcy in June 2026, having deployed over 144 000 radios deployed on more than 24 000 sites. Much of this equipment remains installed, and radios compatible with SpaceX’s 800MHz, AWS and H block spectrum holdings were widely deployed across the network. Crown Castle chief executive Christian Hillabrant described DISH’s network as a potential “cheat code” 4 for SpaceX during the tower company’s Q3 earnings call, with sites already having gone through zoning and permitting processes.
However, DISH’s network is currently at the centre of disputes with towercos, complicating any attempt to acquire or reuse its assets. DISH argues that its spectrum sales constituted a force majeure event required by the FCC, relieving it of its obligations to infrastructure providers. The towercos strongly contest this position, and the resulting legal disputes could determine the extent of DISH’s outstanding lease liabilities.
If DISH believes it will ultimately be exposed to these obligations, a deal with SpaceX could benefit both sides. DISH could reduce its liabilities, while SpaceX could obtain tower access on favourable terms. However, consent and cooperation from the towercos may be required for a change of control. If the towercos expect to recover the money they believe DISH owes them, they may prefer to pursue their claims and negotiate separate leases with SpaceX. If they are less confident of recovery, they may be more receptive to SpaceX taking over some of DISH’s obligations.
It is not yet fully clear how SpaceX could acquire or obtain access to DISH’s radio equipment. American Tower has stated that it now owns the equipment remaining on its sites under an abandonment order in DISH’s bankruptcy, whilst Crown Castle left this as a question for its lawyers in its recent earnings call.
Network or negotiating tactic?
Behind SpaceX’s manoeuvrings remain questions over its true intentions. Will SpaceX build a nationwide terrestrial network for Starlink Mobile, or is it posturing to strengthen its hand in negotiations over an MVNO deal with an existing carrier, or even an acquisition?
The strategic rationale for adding a terrestrial layer to Starlink Mobile likely centres on seamless switching between satellite and terrestrial coverage. However, the extent to which this differentiates its position is unclear. Even if Starlink were to stop offering a D2D product to other US carriers, its satellite-to-mobile service is unlikely to remain unchallenged, with likely competitors including Amazon Leo and AST SpaceMobile. AST recently formed a JV with AT&T, T-Mobile and Verizon and continues to affirm that its network is designed “alongside existing mobile network operators, not as a replacement of them”5.
The major US carriers have so far resisted offering SpaceX an MVNO agreement. Such a deal may become more attractive if they believe SpaceX is serious about entering the market independently, and SpaceX may be working to establish a credible threat. A more ambitious possibility is that SpaceX could seek to acquire one of the existing carriers outright, although there is no public evidence that it is pursuing this strategy.
SpaceX’s spectrum acquisitions and reported discussions with towercos add credence to its announced plans for a terrestrial deployment, but uncertainty remains over exactly how it would execute a nationwide rollout, including the role that Starlink-hosted femtocells and DISH’s stranded network assets could play.
[1] https://www.spacex.com/updates#starlink-mobile-spectrum
[3] https://www.lightreading.com/5g/small-cells-big-mess-why-musk-s-spacex-telecom-plan-won-t-work
[5] https://finance.yahoo.com/quote/ASTS/earnings/ASTS-Q2-2026-earnings_call-665997.html
