The Federal Communications Commission (FCC) has authorized SpaceX to build a 15,000-satellite constellation offering internet and voice services directly to standard mobile phones. The order lets SpaceX use its own spectrum instead of leasing airwaves from traditional carriers, positioning it to compete directly with AT&T, Verizon and T-Mobile. The move is seen as a significant step toward eliminating mobile dead zones around the world.
The authorization could disrupt the telecommunications industry. Just days before the FCC decision was reported, AT&T, Verizon and T-Mobile announced a joint venture to develop their own satellite-to-phone services.
SpaceX’s full commercial service is not expected before 2035. The FCC approval is a pivotal regulatory milestone, and the news had a mixed impact on related stocks. AST SpaceMobile, which also operates in the satellite-to-phone market and relies on carrier partnerships, fell nearly 4% after the report. Verizon shares also declined slightly.