80,000 Cell Sites in SpaceX Talks to Build U.S. Wireless Network
Key Facts
SpaceX is in talks with cellular infrastructure companies to secure at least 80,000 sites across the United States, according to a Bloomberg report cited by Reuters, which quoted people familiar with the matter. The goal puts the company on a potential path to building a fourth national wireless carrier, the report said. The sites are still under discussion, and the announcement does not mean a new network has been built or agreements have been reached. The scale of the request suggests the company’s plans extend beyond satellite connectivity to exploring the creation of a broad terrestrial infrastructure. The talks come as attention turns to the impact a new competitor could have on telecom companies and tower operators.
TD Cowen analysts estimated that building a terrestrial network covering the United States would require more than $80 billion, along with billions of dollars in additional spending over several years. The estimate puts infrastructure costs at the heart of the expansion plan’s challenge, even as SpaceX seeks to negotiate access to existing sites. It reflects the difference between leasing or using telecom sites and building a fully operational nationwide network. The report did not specify a timeline for building the network or the potential cost of agreements for the sites. TD Cowen described the required investment as "more than $80 billion."
The number of purpose-built, operating communications towers in the United States stood at 158,500 in the previous year, according to data Reuters attributed to the Wireless Infrastructure Association. SpaceX’s target of 80,000 sites is about half that total, illustrating the scale of the company’s effort to secure access to sites. But the comparison does not mean every site under discussion corresponds to an operating tower or that all the sites will become part of SpaceX’s network. Crown Castle’s chief executive said the company talks with "all parties," without discussing any specific customers. His comment leaves the door open to negotiations but does not confirm an agreement with SpaceX.
The report also affected U.S. telecom stocks, with shares of AT&T, Verizon and T-Mobile falling between 4.2% and 5% in extended trading on October 22. The move coincided with publication of the report on SpaceX’s site talks, making incumbent companies the focus of the market reaction. In the October 21 session, SpaceX shares had risen 7.8% after the company reported quarterly earnings that exceeded analysts’ expectations, according to the Associated Press. That move preceded the report on the site talks and was not a reaction to the news itself. The moves in the two sessions show that SpaceX and telecom stocks traded amid different news events.
SpaceX’s reported third-quarter results provide context on the scale of its business and its stated financial capacity: revenue was $14.6 billion, up 161% year over year. The company also reported net income of $4.4 billion, compared with a net loss of $1.1 billion in the same period a year earlier. Connectivity revenue was $5.248 billion in the third quarter, versus $3.097 billion a year earlier. The figures come as the company seeks, according to the report, to expand its connectivity business through a terrestrial wireless network. They do not specify how much funding would be allocated to the sites or new infrastructure.
SpaceX had disclosed an agreement to acquire a portfolio of low-band spectrum licenses covering the United States, with a combined bandwidth of up to 14 megahertz in the 800-megahertz band. Completion remains subject to regulatory approvals and other customary closing conditions, according to the company’s disclosure. SpaceX expects to complete the transaction in the first half of 2027. The agreement adds context to the site talks, combining the pursuit of spectrum licenses with access to terrestrial cellular infrastructure. The Federal Open Market Committee meeting is scheduled for October 27 and 28, 2026, with the press conference to be held on October 28.