SpaceX Starlink Mobile plans have shaken the US wireless market. Shares of major phone companies fell sharply on Friday. The losses wiped out more than $50 billion in market value before midday.
Elon Musk wants SpaceX to become a major mobile carrier in the United States. His plan could bring a new rival to firms that serve millions of phone users. Investors reacted with concern as the company revealed more details about its plans.
SpaceX announced the move late Thursday. It said Starlink Mobile would use satellites and ground-based networks to connect devices. The company aims to offer broad coverage across the country. However, the full service still needs final approval from the Federal Communications Commission (FCC).
The company also said the FCC had approved the launch of 15,000 new satellites for Starlink Mobile. These satellites could help SpaceX expand its reach and support its plans for phone services.
The announcement marks another major step in Musk’s effort to grow his technology business. It also raises questions about how established wireless firms will respond to a new source of competition.
Wireless Stocks Take a Hit
The market response was swift. AT&T shares fell 9.8% on Friday. Verizon lost 8.7%, while T-Mobile US suffered a 13.3% drop.
The falls marked key trading events for the two companies. Verizon recorded its largest one-day share price decline since 2002. T-Mobile saw its biggest daily fall since 2011.
The pressure spread beyond the three major carriers. Shares of Charter and Comcast also fell during the session. Both companies offer mobile services under their own brands but rely on Verizon’s network.
The sharp declines suggest that investors are worried about the possible effect of SpaceX’s entry into the market. A new satellite-based service could change how some customers access mobile networks.
Still, the scale of the threat remains unclear. SpaceX must secure final approval and show that its service can meet customer needs. Pricing, signal quality, phone support, and network reach may all shape its success.
Starlink Drives SpaceX Growth
Starlink Mobile is part of a wider effort by Musk to expand his business empire. His companies include Tesla, which makes electric vehicles, and X, the social media platform. He also leads xAI, which develops artificial intelligence tools and data centers.
SpaceX has several business units. Starlink provides high-speed internet to homes and businesses around the world. Starshield offers similar types of services for government users.
Starlink has become the main source of income for SpaceX. It has more than 12 million paying subscribers, according to the figures in the report. The company’s latest earnings report also showed that Starlink was its only profitable business unit.
The report placed Starlink’s value at $2.2 trillion on Friday. That figure shows the scale of the satellite internet business and its role in SpaceX’s wider plans.
Musk said the spectrum deal was the final key piece needed for SpaceX to provide full phone coverage across America. Spectrum refers to radio waves that carry wireless signals between devices and networks.
Access to this resource could help SpaceX build its mobile service. It could also give the company more ways to compete with current phone providers.
Government Decisions Matter
SpaceX has a major role in the US space sector. It builds and launches rockets for NASA and several national security agencies. These contracts make government work an important part of its business.
Regulatory decisions and new public contracts could affect SpaceX’s future growth. The planned mobile service also depends on approval from US officials.
The company must now turn its plans into a working service. It will need to show that its network can offer reliable connections and compete with existing providers. The response from customers will also help determine how much pressure it puts on the market.
Musk’s Political Ties Draw Attention
Musk also has close ties to President Donald Trump. He supported Trump’s 2024 election effort and often attends events at the White House.
At a recent state dinner for Chinese President Xi Jinping, Musk sat next to First Lady Melania Trump. Earlier in the week, Trump presented him with an award for his work in science.
Musk has also resumed large donations to support Republican candidates ahead of the November midterm elections. By Friday, his America PAC had spent more than $36 million to support Republicans in key races, based on figures cited in the report.
His political role adds another layer to his growing business influence. SpaceX depends in part on government contracts, while Starlink Mobile faces a key regulatory test.
For now, the steep fall in wireless stocks shows that investors are taking the plan seriously. The next stage will depend on final approval, service quality, and SpaceX’s ability to attract mobile customers across the United States.
