SpaceX and Qualcomm Partner to Build Ground Network for Starlink Mobile

SpaceX has entered into a multiyear agreement with Qualcomm to build the ground-based network required for its Starlink Mobile service.

Qualcomm announced the partnership on Wednesday, stating that its terrestrial infrastructure will complement the satellite capabilities of Starlink. The company said the rollout is scheduled to begin next year, though it did not disclose the financial terms of the deal.

Durga Malladi, an executive vice president at Qualcomm, said the collaboration aims to build cellular infrastructure in the United States. She noted that the project advances 5G technology while laying the foundation for AI-native 6G in the coming years.

Starlink is a major component of SpaceX's financial results. It accounted for 36% of the company's revenue and 85% of its operating profit in the third quarter. However, SpaceX's direct-to-device mobile service has faced limitations because its satellite network cannot always match the voice, video, and data coverage provided by traditional carriers on popular smartphones.

SpaceX has recently moved to secure the resources needed to compete with Verizon, AT&T, and T-Mobile. Last month, the company announced a plan to purchase a nationwide spectrum portfolio in the 800 MHz band. That news caused a decline in the stock prices of major U.S. carriers. Earlier this week, the Washington Post reported that SpaceX is in talks to acquire EchoStar's Boost Mobile.

SpaceX went public in June in the largest initial public offering on record and is now valued at close to $2 trillion. Under the new agreement, SpaceX will utilize Qualcomm's Dragonwing cellular infrastructure hardware and software in its base stations. This technology is designed to enable high-capacity coverage for Starlink Mobile.

Qualcomm has a long history of manufacturing chips for cellular networks and devices. The company expanded into the 5G infrastructure market in 2020, targeting carriers and infrastructure firms. SpaceX joins a list of recent infrastructure partners that includes Verizon, Dish, and Vodafone. The company plans to establish tens of thousands of new cell sites, although it has not yet announced partners among cell tower companies or specified the number of towers required.