Why Verizon, AT&T, and T-Mobile Should Be Terrified of Elon Musk’s Next Move Rich Duprey Sun, June 28, 2026 at 1:30 PM PDT 4 min read SPCX VZ T TMUS A close-up of a SpaceX sign by Sundry Photography via Adobe Stock The telecommunications industry has spent decades building towers, laying fiber, and battling for every wireless subscriber. Now the next competitive threat may not come from another carrier at all. It could arrive from orbit. According to a Financial Times report, SpaceX (SPCX) plans to launch a direct-to-consumer Starlink mobile service in the U.S., marking a shift from partnering with wireless companies to competing with them. For investors, the move isn't just about mobile phones. It highlights how SpaceX is transforming Starlink from a satellite broadband provider into a full consumer connectivity platform and one that already generates the company's profits. More News from Barchart Billionaire Mark Cuban Asks If AI 'Collapses' And Data Centers Turn Into 'Chuck E Cheeses,' Would That 'Create A Revival Of Jobs?' As Trump Doubles Down on Quantum Computing, This Is the Top-Performing Stock to Buy YTD Middle East Tensions, Tesla Deliveries and Other Can't Miss Items this Week Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. www.barchart.com Starlink Is SpaceX's Financial Engine Starlink's growth has been extraordinary by telecom standards. SpaceX disclosed during its IPO process that the satellite internet service serves about 10.3 million subscribers across 164 countries as of March, while Elon Musk recently said the network has surpassed 12 million active customers worldwide. The business generated approximately $11.4 billion in 2025 revenue and $4.4 billion in operating profit, making it SpaceX's largest earnings contributor. That's important because profitable businesses can afford to play offense. Until now, Starlink largely relied on carrier partnerships, including arrangements that let customers connect to satellites when outside traditional cellular coverage. The Financial Times reports SpaceX now wants to sell mobile service directly to consumers, potentially building its own terrestrial wireless network over time. That means SpaceX would no longer be helping carriers fill coverage gaps. It would be asking customers to switch providers. Can Starlink Realistically Steal Market Share? The U.S. wireless market remains dominated by three companies. Company Approximate wireless subscribers Competitive strength T-Mobile (TMUS) 130+ million Value pricing, 5G leadership Verizon (VZ) 145+ million Network quality, premium customers AT&T (T) 120+ million Bundled wireless and fiber Even capturing 2% to 5% of that market over several years would translate into 8 million to 20 million U.S. mobile subscribers. For a company that already operates one of the world's largest satellite networks, that's an ambitious but not impossible target. Story Continues Granted, replacing nationwide terrestrial networks won't happen overnight. The established carriers own far more licensed spectrum, extensive retail operations, and decades of customer relationships. Reuters notes, however, that last September, SpaceX acquired wireless spectrum licenses from EchoStar (ECHO) for its Starlink satellite network for about $17 billion. It bought...
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