On Verizon's third-quarter earnings call on October 26, CEO Dan Schulman said SpaceX would have to spend up to half a trillion dollars, over six to eight years, to build a phone network that competes with Verizon's. Less than a week earlier, AT&T's CEO brushed off the same threat.
What Verizon's CEO said
Schulman said he takes SpaceX seriously: "I also operate under the assumption that everything SpaceX says they will do, they will do, and that they will execute flawlessly."
His point was cost. Satellites alone can't keep up in cities and suburbs, he said, where about 98% of Verizon's revenue comes from. To match Verizon, SpaceX would need up to 80,000 large cell towers on the ground, linked by satellites and fiber.
He put that at up to $500 billion over six to eight years, with at least four to six years just to build the network. Then SpaceX would still need customer service, stores and billing systems. "If they build a terrestrial network, it will basically look and feel like every other network," he said.
What Elon Musk said back
After the call, Musk replied on X: "Will take 2 or 3 years." SpaceX hasn't said what a Starlink Mobile plan would cost or when it would sign up customers.
Why carriers are watching SpaceX
Earlier this month, SpaceX bought a batch of low-band spectrum that works well with phones. Shares of AT&T, T-Mobile and Verizon fell about 10% on the news. Verizon is the only one of the three whose shares have partly recovered.
AT&T CEO John Stankey played it down last week: "I wouldn't over-rotate on what I would call one carrier of low band spectrum."
What it means for your phone plan
Nothing changes for now. Starlink's phone service today is satellite texting and basic data in dead zones, through T-Mobile. A full SpaceX phone network is years away even on Musk's timeline, so there's no reason to wait for it before picking a plan.
If you want Verizon's coverage for less, prepaid brands on Verizon's network start at $25 a month with taxes included.
Frequently asked questions
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Jean Gilles has researched personal finance, consumer technology, and wireless pricing for over a decade. He founded ShopCellPlans in 2019 and writes every review on the site.