space x announced an agreement with a chip manufacturer From Qualcomm Provides key network technology for Elon Musk’s Starlink mobile service, verizon, AT&T and T-Mobile.
Qualcomm announced Wednesday that the ground network it is helping SpaceX build will “complement Starlink’s satellite capabilities,” with deployment expected to begin next year. Financial terms of the multi-year deal were not disclosed.
“Together with SpaceX, we are building world-leading cellular infrastructure in the U.S., advancing 5G now, and have the opportunity to lay the foundation for AI-native 6G in the coming years,” Qualcomm executive vice president Durga Maradi said in a statement.
Starlink is a key part of SpaceX’s business, accounting for 36% of the company’s revenue and 85% of its operating profit in the third quarter. But so far, the company’s consumer business has been limited when it comes to mobile direct device services because its satellite network can’t offer the full range of voice, video and data that competitors offer on popular smartphones.
Now, SpaceX is securing spectrum and forging partnerships to take on major carriers. Last month, the company announced a deal to buy a nationwide spectrum portfolio in the 800MHz band. Shares of US telecommunications companies were shaken by the news. Earlier this week, the Washington Post reported that SpaceX is in talks to acquire EchoStar’s Boost Mobile.
SpaceX went public in June in the largest IPO in history and is now valued at nearly $2 trillion.
SpaceX plans to work with Qualcomm to use the chipmaker’s Dragonwing cellular infrastructure hardware and software in its base stations to enable Starlink Mobile’s high-capacity coverage.
Qualcomm has a long history of making chips for cellular networks, but is best known for making the modems and radios that go into devices rather than the base stations that run wireless networks. The company further stepped up its push into the 5G infrastructure market in 2020 and has since targeted carriers and other infrastructure companies.
SpaceX represents one of Qualcomm’s highest-profile customers or partners in 5G infrastructure, following previous agreements with Verizon, Dish, and Europe’s Vodafone.
SpaceX plans to build tens of thousands of new base stations using Qualcomm’s technology, but has not disclosed its base station company partners or the number of new base stations.
Mobile phone companies typically lease space from companies such as: american tower and crown castletypically hosting multiple carriers from one site.
SpaceX did not respond to CNBC’s request for additional information.
–CNBC’s Kif Leswing contributed reporting.
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