SpaceX Partners with Qualcomm on Network Technology, Formalizes Challenge to Mobile Market

[Financial News]  

SpaceX agreed on the 4th (local time) to a multiyear technology partnership with mobile semiconductor maker Qualcomm. It revealed its ambition to use Qualcomm’s technology to turn its ‘Starlink Mobile’ service into a major mobile carrier on a par with the three major U.S. carriers, including Verizon Communications Inc., AT&T and T-Mobile US.
In a statement, Qualcomm said it had agreed to help SpaceX build its terrestrial network and that SpaceX could complement its satellite network and begin full-scale service next year.
Qualcomm Vice President Durga Malladi said, “Together with SpaceX, we are building world-leading mobile communications infrastructure in the United States,” adding, “For now, we’ll start with advanced 5G (fifth-generation) and, in a few years, lay the groundwork for AI-based 6G (sixth-generation).”
Starlink is a core business division of SpaceX. In the third quarter, it accounted for 36% of SpaceX’s total revenue—not a particularly large share—but generated 85% of its operating profit, serving as a ‘cash cow.’ However, it continues to show limitations. The satellite network cannot fully support all voice, video and data services on smartphones offered by competitors.
Work to address this blind spot is ongoing. Last month, SpaceX agreed to acquire an 800 MHz (megahertz) spectrum portfolio covering the entire United States. Reports at the time also sent U.S. mobile carriers’ stock prices tumbling.
Under the agreement, SpaceX will be able to use Qualcomm’s Dragonwing base-station hardware and software for mobile communications infrastructure. This will allow it to expand Starlink Mobile’s coverage area.
Qualcomm is known for its mobile chips, but is also well known as a maker of the modems and wireless communications equipment needed for mobile devices.
Meanwhile, SpaceX was down more than 3% that day after Democrats scored a landslide victory in the midterm elections the previous day. The decline is seen as fallout from CEO Elon Musk’s extensive support for Republicans in the election.

[email protected] Song Kyung-jae Reporter