Abstract:
SpaceX is negotiating with major communication base station operators in the United States and plans to obtain the right to use at least 80,000 ground base stations in the United States to establish a nationwide mobile communication network and directly challenge the three major traditional operators AT&T, Verizon and T-Mobile. According to information disclosed on October 22, SpaceX is negotiating base station leasing agreements with communications infrastructure companies such as Crown Castle, and the potential transaction value may reach billions of dollars.
Combining the previously acquired low-frequency radio spectrum and the deployment of 15,000 direct-connect mobile phone satellites approved by the U.S. Federal Communications Commission (FCC), SpaceX is trying to expand Starlink from satellite Internet services to an independent nationwide mobile communications network.
Negotiating the lease of 80,000 ground base stations, with potential contract value reaching billions of dollars
According to disclosures, SpaceX is negotiating with major U.S. communication base station operators, including Crown Castle, hoping to obtain the right to use at least 80,000 ground base stations. These facilities will be combined with SpaceX's existing satellite network to form a hybrid communications infrastructure covering urban, suburban and remote areas.
Crown Castle CEO Chris Hillabrant did not directly respond to specific negotiations with SpaceX during an earnings call on Wednesday, but confirmed that the company is in contact with all major satellite communications service providers exploring ground communications deployment.
Traditional mobile operators usually build wireless networks by leasing space for communication towers and related equipment to reduce the cost of building independent infrastructure. SpaceX plans to adopt a similar model by leasing existing ground base stations to combine satellite networks with traditional cellular communication systems without having to build a nationwide ground station network from scratch.
Considering that there are more than 80,000 potential rental sites, the total amount of relevant agreements may reach billions of dollars. However, the two parties have not yet announced a formal contract, and the specific lease period, number of sites and funding arrangements have yet to be determined.
FCC approved the deployment of 15,000 direct-connect satellites for mobile phones, providing the basis for low-frequency spectrum acquisition
SpaceX has previously received approval from the U.S. Federal Communications Commission to deploy 15,000 satellites dedicated to direct mobile phone communications, allowing ordinary smartphones to directly access satellite networks without relying on traditional ground base stations.
At the same time, SpaceX has recently acquired low-frequency radio spectrum assets to provide necessary spectrum resources for the establishment of independent mobile communication networks. Compared with high-frequency spectrum, low-frequency signals usually have wider coverage and stronger building penetration capabilities, and are suitable for providing wide-area mobile communication services.
However, there are differences between satellite direct-connection mobile phone technology and traditional terrestrial cellular networks in terms of communication capacity, signal density and urban coverage capabilities. Especially in areas with high population density, a large number of users use mobile networks at the same time, placing higher requirements on communication capacity and connection stability.
Therefore, SpaceX plans to combine satellite communications with ground base stations. The ground facilities will bear the high-density communication needs of cities and suburbs, while the satellite systems will be responsible for supplementing remote areas and areas that are difficult to cover with traditional networks. This hybrid architecture is expected to allow SpaceX to improve the stability and capacity of mobile broadband services while providing wide-area network coverage.
Directly challenging the three major U.S. carriers, Crown Castle’s stock price surged nearly 10% after hours
SpaceX CEO Elon Musk has previously listed entering the traditional mobile communications market as the company's new business direction. With the acquisition of low-frequency spectrum, the deployment of direct-connect mobile phone satellites and ground base station leasing negotiations, SpaceX is establishing the infrastructure required to independently provide mobile communication services.
If the relevant plans are successfully implemented, SpaceX will have the opportunity to become the fourth major mobile operator in the United States with nationwide network coverage after AT&T, Verizon and T-Mobile. Unlike existing operators that mainly rely on terrestrial cellular networks, SpaceX will be able to use the Starlink satellite constellation to expand coverage in remote areas and enhance network capacity in cities and densely populated areas through ground base stations.
The capital market responded quickly to relevant news. On October 22, Crown Castle's stock price rose 0.23% to close at US$78.83 during regular trading hours. It rose sharply by approximately 8.7% to US$85.67 after the market closed, reflecting investors' positive expectations for potential large-scale base station leasing contracts.
In contrast, SpaceX's stock price rose only slightly by about 1% after hours, after falling 9.13% during the regular trading session.
For communications infrastructure operators such as Crown Castle, SpaceX’s large-scale leasing of existing base stations will bring new long-term leasing needs. For SpaceX, obtaining the right to use 80,000 ground base stations will mean that the company has taken an important step from a satellite broadband operator to a comprehensive mobile communications operator. However, the plan is still in the negotiation stage, and whether it can eventually form a nationwide commercial network depends on base station leasing agreements, spectrum deployment, and the progress of integration of satellite and terrestrial networks.
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