SpaceX’s Starlink expansion is a bold gamble on the future

SpaceX confirmed on 8 October it will build a full mobile network to compete with incumbents, and T-Mobile, AT&T and Verizon shares fell. Starlink has more than 12m subscribers. The plan combines FCC approval for up to 15,000 direct-to-phone satellites, ground infrastructure (femtocells in dishes plus masts) and spectrum: $19.6bn paid to EchoStar in 2025 and low-frequency spectrum from Grain Management, rumoured at $8bn. The article says SpaceX raised $86bn in a June IPO and issued $25bn of debt weeks later. Gwynne Shotwell argues robots and autonomous vehicles will drive connectivity demand. Counterweights: analyst Tim Farrar says customers aren’t yet willing to pay much, T-Mobile’s CEO put satellite at 0.0002% of usage in May, and the carriers have formed a joint venture as a hedge. The Economist judges the near-term threat modest and the bet risky because Starlink funds losses elsewhere.