News Summary
- SpaceX plans a Starlink phone and direct-to-device internet service.
- Starlink is a major source of revenue for SpaceX.
- In addition to internet services, Stargaze will monitor satellite traffic in low Earth orbit, further expanding SpaceX’s operational reach.
With a SpaceX IPO expected this year, the company is planning to expand its Starlink business into new markets. These plans include a Starlink phone, direct-to-device internet, and a space tracking device service, according to sources familiar with the matter.
SpaceX, the leading company in Elon Musk’s business ventures, is growing thanks to its fast satellite production for Starlink and its reusable rockets. These strengths support Musk’s goal of building data centers in orbit around Earth, a major investment behind SpaceX’s recent merger with xAI.
The company is considering making a mobile device specifically designed to connect to Starlink, according to three people familiar with the plans.
Details about the mobile devices’ features, specifications, or the expected development timeline have not been disclosed in the past few years. Starlink has partnered with T-Mobile to provide its satellite internet directly to T-Mobile phones a strategy distinct from SpaceX’s. SpaceX is manufacturing its own device.
SpaceX did not reply to a request for comment.
According to these sources, SpaceX has been considering mobile phone plans for years. This interest was highlighted last week when an ex-user speculated about a possible Starlink phone, and Musk replied, “Not out of the question at some point.”
Elon Musk further clarified that such a device would be very different from current phones, optimized purely for running max-performance-per-watt neural nets, referring to the computing hardware used in artificial intelligence.
However, when a user on X shared the writer’s report, Musk replied, “We are not developing a phone,” underscoring ongoing uncertainty around these plans.
Starlink Drives SpaceX Revenue
Starlink is a key source of profit for SpaceX. Last year, the company made about $8B in profit from $15B to $16B in revenue, according to two people familiar with the company’s results. Starlink was the main revenue driver, accounting for about 50% to 80% of total revenue.
Last year, SpaceX made its largest investment in cellular communications by buying satellite spectrum from EchoStar for $19.6B. Some people see this as a threat to mobile network operators like Verizon and AT&T, but so far, SpaceX has set itself up as a partner to those networks.
Despite these efforts, it will likely be hard for Starlink to make a phone and compete with the MNOs. The other MNOs would avoid using it, said Armand Muzi, president of Summit Ridge Group. “It would be like GM making car tires and trying to sell them to the other auto manufacturers,” he explained, illustrating the potential challenge SpaceX faces if it transitions from partner to direct competitor.
SpaceX, the largest satellite operator, has over 9 million Starlink broadband users and government contracts for Starlink and Starshield.
If SpaceX moves forward and makes a mobile device, it would be a major addition to its Starlink product lineup. This potential development comes as Starlink has grown in just six years into a network of 9,500 satellites, helping the company enter new markets.
Currently, about 650 of the Starlink satellites in orbit were made for SpaceX’s new direct-to-device business. Musk wrote in a SpaceX blog post on Monday that the goal is to eventually deliver full cellular coverage everywhere on Earth, further underscoring the company’s ambitions in direct-device connectivity.
Source: Starlink fuels SpaceX growth with potential phone, more internet services
