SpaceX turns to Qualcomm for 5G hardware in mobile push

SpaceX has spent the last year expanding its mobile ambitions beyond its satellite constellation, and it now has a major hardware partner for the terrestrial side of that plan. The company announced a multiyear agreement with Qualcomm to supply the network technology required for Starlink Mobile, a service designed to compete directly with Verizon, AT&T, and T-Mobile.

Qualcomm stated on Wednesday that the terrestrial network it will help construct will complement Starlink's existing satellite capabilities. The rollout is scheduled to begin next year, though neither company disclosed the financial terms of the deal. Durga Malladi, an executive vice president at Qualcomm, said the collaboration focuses on building cellular infrastructure in the United States. She noted that the work advances 5G today while laying a foundation for AI-native 6G in the future.

Starlink currently drives a large portion of SpaceX's financial performance. The division accounted for 36% of the company's revenue in the third quarter and generated 85% of its operating profit. Until now, SpaceX's consumer mobile offerings have faced technical limitations. Its satellite network cannot yet provide the full range of voice, video, and data coverage that standard smartphones require for reliable use in dense urban areas.

To close that gap, SpaceX has been acquiring spectrum and forming strategic alliances. Last month, the company agreed to purchase a nationwide spectrum portfolio in the 800 MHz band, a move that caused a drop 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 brand. SpaceX went public in June in what became the largest initial public offering on record, establishing a valuation near $2 trillion.

Under the new agreement, SpaceX will utilize Qualcomm's Dragonwing cellular infrastructure hardware and software in its base stations. This technology is intended to enable high-capacity coverage for Starlink Mobile. While Qualcomm is widely known for the modems and radios inside consumer devices, it has been pushing into the 5G infrastructure market since 2020. It has previously secured infrastructure deals with Verizon, Dish, and Vodafone.

SpaceX plans to use Qualcomm's technology to establish tens of thousands of new cell sites. The company has not yet named partners among tower companies or specified the total number of new towers required. Mobile carriers typically lease space from firms like American Tower and Crown Castle, which host multiple operators on a single site. SpaceX did not respond to requests for additional details on the operational specifics of the network buildout.