Full Breakdown
SpaceX Pursues Combined Satellite-and-Tower Network to Enter U.S. Cellular Market
By Drooid · · How we work
In this breakdown
01
Core Development: Satellite Authorization and Spectrum Moves
In October, the FCC proposed making an additional 482 MHz of spectrum available for satellite services that can beam directly to phones, expanding “Supplemental Coverage from Space” bands from five to thirteen. Industry group CTIA, representing AT&T, Verizon and T-Mobile, asked the FCC to exclude the 2.5 GHz and 3.45 GHz bands (290 MHz) to protect uplink coverage. SpaceX counter-proposed adding the 902-928 MHz band.
The FCC also scheduled two October actions: a decision on SpaceX’s purchase of three unused AWS-3 licenses from Tristar on Oct 21, and a clearance of its 15,000-satellite “direct-to-device” plan on Oct 6. Neither grants spectrum outright; the former opens a 60-day public comment period.
SpaceX has FCC authorization to launch up to 15,000 next-generation satellites that communicate directly with phones and expects deployment to begin in 2027, with service targeted for early 2028.
02
Ground-Network Ambitions: Negotiations for Cell Sites
SpaceX is in talks with major tower owners to secure access to at least 80,000 U.S. cell sites. Crown Castle, which operates roughly 40,000 towers, confirmed discussions about leasing arrangements.
The Wireless Infrastructure Association counted about 158,500 purpose-built towers in 2025; a single tower can host equipment from multiple networks, so the 80,000-site target would expand SpaceX’s ground footprint substantially.
SpaceX has also discussed installing small base stations at Starlink customer premises. Its existing partnership with T-Mobile—through the “T-Satellite with Starlink” service—already lets compatible phones connect to satellites where cellular coverage is lacking.
03
Financial and Competitive Landscape
TD Cowen estimates building a nationwide terrestrial network could cost more than $80 billion.
Following reports of the tower negotiations, shares of the three incumbent carriers fell on Oct 23, while shares of infrastructure firms rose on expectations of leasing revenue.
04
Official Statements & Responses
- Crown Castle CEO Chris Hillabrant said the company is discussing tower-space leasing with multiple parties, including SpaceX.
- CTIA formally requested the FCC exclude the 2.5 GHz and 3.45 GHz bands, citing uplink interference concerns.
- SpaceX stated the combined satellite and ground network aims to provide broader connectivity wherever it can operate.
05
Data & Statistics
- Targeted ground footprint: 80,000 cell sites.
- Crown Castle tower inventory: ? 40,000 towers.
- Nationwide purpose-built towers (2025): ? 158,500.
- Additional satellite-compatible spectrum: 482 MHz.
- Satellite constellation size: up to 15,000 satellites.
- Estimated network-build cost: > $80 billion.
06
Conflicting Reports & Gaps
- Deployment timeline: SpaceX’s earnings call projected satellite deployment to start in 2027, while President Shotwell referenced a service launch aimed for early 2028.
- Spectrum allocation: The FCC’s proposal expands eligible bands, but the specific frequencies to be granted to SpaceX remain pending public comment.
07
What’s Next
- The FCC’s public comment period on the 482 MHz proposal will close 60 days after the notice appears in the Federal Register.
- FCC actions on Oct 6 (satellite plan clearance) and Oct 21 (AWS-3 license purchase) will shape SpaceX’s regulatory footing.
- SpaceX plans to launch its next-generation satellites in 2027, targeting service on its own airwaves in early 2028.