SpaceX and Charter Communications are in talks to partner on mobile phone services in the US, combining Starlink's direct-to-cell satellite technology with Charter's cable infrastructure. The deal could disrupt the US telecom market by creating a new competitor to T-Mobile, AT&T, and Verizon. Charter shares could benefit from expanded mobile capabilities while SpaceX gains a distribution partner for its satellite-to-phone service.
SpaceX is in discussions with Charter Communications to offer mobile phone services in the US, a partnership that would combine Starlink's direct-to-cell satellite technology with Charter's existing cable and mobile infrastructure to challenge the dominance of T-Mobile, AT&T and Verizon.
"SpaceX and Charter are exploring a commercial arrangement that would let Charter resell Starlink's direct-to-cell capacity to its mobile subscribers," a person familiar with the matter said. The talks are ongoing and no final agreement has been reached, the person added.
The partnership would leverage Starlink's growing satellite constellation — more than 6,000 satellites in low-Earth orbit — to provide cellular coverage in areas where traditional towers don't reach. Charter, the second-largest cable operator in the US with about 30 million broadband customers, has been expanding its mobile business through its Spectrum Mobile service, which currently relies on Verizon's network under a mobile virtual network operator agreement.
For SpaceX, a deal with Charter would provide a distribution channel for its direct-to-cell service, which the company has been testing since early 2024. The service uses Starlink satellites equipped with custom modems that function as cell towers in space, connecting to standard smartphones without hardware modifications. SpaceX President Gwynne Shotwell has told investors the company plans to launch a terrestrial Starlink service that would sell mobile contracts directly to consumers, according to people briefed on the discussions.
The potential partnership comes as SpaceX weighs whether to compete directly with the three dominant US wireless carriers or partner with them. Analysts have speculated that an acquisition of T-Mobile could accelerate SpaceX's mobile ambitions and solve what they describe as a spectrum deficit issue — Starlink's direct-to-cell service currently operates on licensed spectrum from T-Mobile under a prior agreement.
Charter's Spectrum Mobile has amassed about 7 million lines since its 2018 launch, making it one of the faster-growing mobile operators in the US. Adding satellite coverage would let Charter offer service in rural and remote areas where it currently has no wireless footprint, potentially closing a competitive gap with T-Mobile and AT&T, which have broader native coverage.
The talks also highlight the shifting dynamics in US telecom, where cable operators, satellite providers and traditional wireless carriers are increasingly competing for the same customers. Comcast, Charter's primary cable rival, has its own mobile service with about 6 million lines and has not announced a satellite partnership.
SpaceX's Starlink business generated an estimated $8.2 billion in revenue in 2024, according to industry estimates, and the direct-to-cell service represents a new revenue stream beyond its core broadband offering. Charter reported $54 billion in revenue in 2024, with its mobile segment growing at double-digit rates.
Any deal would require regulatory approvals, including from the Federal Communications Commission, which has been reviewing SpaceX's applications to operate direct-to-cell services. The FCC granted SpaceX a temporary license in March 2024 to test the service with T-Mobile.
This article is for informational purposes only and does not constitute investment advice.
