Why Verizon, AT&T, and T-Mobile Should Be Terrified of Elon Musk’s Next Move

The telecommunications industry has spent decades building towers, laying fiber, and battling for every wireless subscriber. Now the next competitive threat may not come from another carrier at all. It could arrive from orbit. 

According to a Financial Times report, SpaceX (SPCX) plans to launch a direct-to-consumer Starlink mobile service in the U.S., marking a shift from partnering with wireless companies to competing with them. For investors, the move isn't just about mobile phones. It highlights how SpaceX is transforming Starlink from a satellite broadband provider into a full consumer connectivity platform—and one that already generates the company's profits.

Starlink Is SpaceX's Financial Engine

Starlink's growth has been extraordinary by telecom standards. SpaceX disclosed during its IPO process that the satellite internet service serves about 10.3 million subscribers across 164 countries as of March, while Elon Musk recently said the network has surpassed 12 million active customers worldwide. The business generated approximately $11.4 billion in 2025 revenue and $4.4 billion in operating profit, making it SpaceX's largest earnings contributor.

That's important because profitable businesses can afford to play offense.

Until now, Starlink largely relied on carrier partnerships, including arrangements that let customers connect to satellites when outside traditional cellular coverage. The Financial Times reports SpaceX now wants to sell mobile service directly to consumers, potentially building its own terrestrial wireless network over time.

That means SpaceX would no longer be helping carriers fill coverage gaps. It would be asking customers to switch providers.

Can Starlink Realistically Steal Market Share?

The U.S. wireless market remains dominated by three companies.

Even capturing 2% to 5% of that market over several years would translate into 8 million to 20 million U.S. mobile subscribers. For a company that already operates one of the world's largest satellite networks, that's an ambitious—but not impossible—target.

Granted, replacing nationwide terrestrial networks won't happen overnight. The established carriers own far more licensed spectrum, extensive retail operations, and decades of customer relationships. Reuters notes, however, that last September, SpaceX acquired wireless spectrum licenses from EchoStar (ECHO) for its Starlink satellite network for about $17 billion. It bought a second tranche for $2.6 billion in November. That could give it the ability to ​quickly create an effective and ⁠affordable mobile service using EchoStar's airwaves.

Cheap Connectivity Changes the Competitive Equation

Internet access has steadily become a lower-margin business as competition has increased. If SpaceX packages Starlink broadband with an inexpensive mobile plan, pricing could become its biggest weapon.

That also raises questions about existing partnerships. Carriers currently benefit from working with Starlink to extend coverage into remote areas. If SpaceX becomes a direct retail competitor, those relationships could become more complicated. Some operators may continue partnering where satellite coverage adds value, while others could seek alternative satellite providers or invest more aggressively in their own networks.

In the end, this isn't just another telecom product launch. It's another step toward making Starlink the default connectivity platform—whether customers are at home, on the road, or beyond the reach of traditional cell towers.

Key Takeaway

In short, SpaceX doesn't need to dominate the wireless market to reshape it. Starlink already has more than 10 million subscribers, generates billions in annual profit, and continues expanding its satellite network.

That said, investors in T-Mobile, Verizon, and AT&T shouldn't expect an immediate wave of customer defections. Building a nationwide mobile business requires spectrum—perhaps a lot more than it currently has access to—retail distribution, customer support, and years of execution.

Regardless, SpaceX has demonstrated an ability to disrupt industries once thought untouchable. If it pairs low-cost mobile service with its rapidly expanding Starlink ecosystem, the competitive landscape for wireless carriers could look very different by the end of the decade.