SpaceX Taps Qualcomm to Build the Terrestrial Backbone for Starlink Mobile

SpaceX has signed a multiyear deal with Qualcomm to supply the core network technology for Starlink Mobile, the satellite giant's push to become a real mobile carrier in the United States. Qualcomm announced the agreement Wednesday, saying the terrestrial network it helps build will "complement Starlink's satellite capabilities." The rollout is slated to begin next year, and neither side disclosed the money involved.

The hardware in question is Qualcomm's Dragonwing cellular infrastructure, the base-station gear that handles high-capacity coverage. It's an unusual starring role for a chipmaker best known for the modems and radios sitting inside phones rather than the towers beaming signals to them. Qualcomm has been courting carriers and infrastructure players since it dove deeper into 5G infrastructure in 2020, and SpaceX now ranks among its biggest wins on that front, after earlier deals with Verizon, Dish and Vodafone.

"Together with SpaceX, we are building world-leading cellular infrastructure in the United States, advancing 5G today, with an opportunity to lay the foundation for AI-native 6G in the years ahead," Qualcomm EVP Durga Malladi said in a statement.

The stakes are enormous for SpaceX. Starlink generated 36% of company revenue in the third quarter and a whopping 85% of operating profit, but its consumer business has stumbled on direct-to-device service, since satellites alone can't deliver the voice, video and data that rival carriers push to everyday smartphones. SpaceX went public in June in the largest IPO ever recorded and now carries a valuation near $2 trillion.

So Musk's company is buying its way onto the ground. Last month it announced a deal to acquire a nationwide spectrum portfolio in the 800 MHz band, a move that sent US carrier stocks reeling. Earlier this week, the Washington Post reported SpaceX is in talks to snap up EchoStar's Boost Mobile.

One big piece is still missing: towers. SpaceX plans to stand up tens of thousands of new cell sites using Qualcomm's tech, but it hasn't named tower partners or said how many structures it will need. Carriers typically lease space from outfits like American Tower and Crown Castle, which host several networks from a single site. SpaceX didn't respond to CNBC's request for more details.