Space Exploration Technologies Corp. is in discussions to lease access to at least 80,000 ground-based cell sites across the United States, Bloomberg reported, marking a major step toward building a fourth nationwide mobile network.
The company, led by Chief Executive Officer Elon Musk, is in talks with major infrastructure providers, including Crown Castle International Corp., according to financial news reports. The effort aims to pair terrestrial infrastructure with an expanding low-Earth-orbit satellite fleet to directly rival established carriers AT&T Inc., Verizon Communications Inc., and T-Mobile US Inc.
Building a Hybrid Mobile Network
During a quarterly earnings call on Wednesday, Crown Castle Chief Executive Officer Chris Hillabrant declined to discuss specific negotiations but confirmed that his firm is in active discussions across the industry with satellite-based telecommunications providers exploring ground infrastructure. Crown Castle currently operates approximately 40,000 tower sites in the U.S., while peer American Tower Corp. manages 41,764 domestic sites, according to reports. Together, the traditional carriers generate roughly 85 to 90 percent of site rental revenues for both tower operators.
The prospective leasing arrangements could run into billions of dollars, reflecting the enormous physical requirements needed to handle high data traffic in densely populated urban and suburban zones. SpaceX previously secured approval from the Federal Communications Commission to launch 15,000 specialized satellites designed to transmit cellular signals directly to off-the-shelf mobile devices. The company also acquired low-band spectrum assets, which provide the building penetration and broad range necessary to link orbital transmitters with ground operations.
SpaceX President Gwynne Shotwell told investors during a company earnings call on Tuesday that the aerospace firm plans to begin commercial operations for its second-generation Starlink Mobile service in early 2028. Shotwell described a strategy combining conventional cell towers, new satellites, and low-cost radio transmitters known as femtocells. She floated an unconventional idea to attach smaller radios to existing dish installations belonging to Starlink broadband subscribers, of which there are currently more than two million in the U.S.
Industry Skepticism and Regulatory Hurdles
Telecom industry analysts have expressed caution regarding how quickly SpaceX can overcome logistical, regulatory, and technical roadblocks. Mike Dano, lead analyst at Ookla, pointed out that established wireless carriers each rely on roughly 60,000 to 80,000 cellular towers across the country, PCMag reported. Dano noted that placing cellular gear on residential rooftops would trigger complex municipal zoning reviews and intricate radio frequency management to prevent signal interference.
Other industry experts questioned whether household antennas can deliver true mobile connectivity. Anshel Sag, an analyst at Moor Insights & Strategy, told PCMag that femtocell transmitters have very limited physical range and would not provide substantial coverage beyond private property boundaries. Sag added that sharing gateway connections could potentially degrade home broadband performance for existing Starlink customers, concluding that SpaceX will ultimately have to spend heavily on traditional urban and suburban leases.
Jeff Moore, principal at Wave7 Research, noted that previous telecom initiatives aimed at bypassing standard network investments often stumbled over unexpected capital demands. Moore also highlighted practical hurdles outside network hardware, such as establishing consumer customer support and a retail presence to enroll users, given that most American shoppers continue to buy wireless plans in brick-and-mortar storefronts.
Musk dismissed conventional skepticism in a post on social media, asserting that industry veterans fail to recognize new operating models. Financial analysts at Bernstein and Morningstar noted that if agreements materialize, SpaceX could become a lucrative tenant for domestic tower operators at a time when traditional wireless carriers are curtailing capital expenditures.
Whether tower real estate providers and regulatory authorities will finalize the proposed leasing framework ahead of the targeted 2028 launch remains to be seen.
