SpaceX Targets Access to 80,000 Cell Sites to Build a Fourth Wireless Carrier

Key Facts

SpaceX is seeking access to at least 80,000 cell sites in the United States and is in talks with infrastructure companies ahead of building a wireless network that could allow it to enter the market as a fourth nationwide carrier, according to a Reuters report published via StreetInsider on October 22. The effort puts ground-based sites at the heart of the company’s plan to expand from satellite services into mobile connectivity. The Business Times, citing Bloomberg, reported that Crown Castle is among the entities SpaceX is negotiating with. No completed agreement has been announced, so the talks remain a potential step toward securing infrastructure, not an announcement of a ready-to-launch network. Elon Musk said the company would build ground networks to provide broadband connectivity, according to Reuters.

The available figures reflect a difference between share moves after the report and the regular-session close. Shares of AT&T, Verizon and T-Mobile fell between 4.2% and 5% in extended trading on October 22, according to Reuters. But EL7 data show Verizon closed at $45.20 that day, up from $43.56 on October 21. AT&T closed at $22.74, compared with $21.91 in the previous session. The reported decline was therefore in extended trading, while the two stocks’ regular-session closes showed daily gains. The moves came as investors weighed the prospect of a new competitor, while talks over the sites remain without an announced agreement.

The talks could represent a business opportunity for tower companies if they lead to contracts, with site deals with SpaceX potentially worth billions of dollars, The Business Times reported, citing Bloomberg. Crown Castle owns, operates and leases about 40,000 cell towers in the United States, according to its 2026 earnings announcement. That scale offers an indication of the assets managed by one of the companies cited in the talks. For SpaceX, access to existing sites could support the construction of a broad ground network; for tower operators, it could add a potential major tenant. The projected multibillion-dollar value of the deals, however, remains a possibility reported in the article, not the value of a contract already signed.

TD Cowen estimates that building a nationwide ground network could cost more than $80 billion and take many years, with billions of dollars in additional spending, according to Reuters. The cost highlights the scale of investment required to establish infrastructure capable of competing with incumbent carriers’ networks. Spectrum ownership alone is also not enough to provide nationwide coverage; Verizon has said that buying spectrum does not provide the network or infrastructure needed for true nationwide coverage. AT&T Chief Executive John Stankey said putting small cell sites next to home Starlink dishes “would not be enough to become a serious competitor.” The challenge, according to these remarks, depends on combining spectrum with the sites and facilities needed to operate the service.

SpaceX’s potential expansion rests on two connectivity channels: satellites and ground infrastructure. The Business Times, citing Bloomberg, reported that the Federal Communications Commission approved the launch of 15,000 satellites designed to provide mobile service directly to phones. SpaceX said it would build ground networks to provide broadband connectivity in areas where it and Starlink are permitted to operate. The cell-site plan shows the company seeking to add ground components to its space-based presence, potentially drawing on infrastructure operators. A T-Mobile executive said more than 70% of mobile data traffic takes place indoors, citing the importance of ground networks. Building those networks, according to estimates, remains a project requiring substantial spending and a long timeline.

The sector’s stocks had already come under pressure after the announcement of the spectrum deal SpaceX bought on October 9. In the first trading session after the announcement, AT&T shares fell 9.8%, Verizon fell 8.8% and T-Mobile fell 13.3%, according to Axios. A T-Mobile official said at the time that more than 70% of mobile data traffic takes place indoors, while Verizon stressed that spectrum alone does not provide nationwide coverage. The report on cell sites adds the infrastructure dimension to the discussion sparked by the spectrum deal. SpaceX officials said they plan to launch the mobile service business in late 2027, according to Axios. That remains a planned launch date for the service, while no completed site agreements have yet been announced.