SpaceX Pursues US Tower Footprint for Nationwide Mobile

Key Moments

SpaceX is seeking access to at least 80,000 cell sites across the U.S. as part of its wireless expansion strategy.
Talks with Crown Castle Inc. (NYSE:CCI) coincided with CCI shares jumping as much as 10% in late trading, while major mobile carriers’ shares fell around 5%.
Elon Musk highlighted spectrum acquisitions and FCC approval for 15,000 satellites as key steps toward establishing Starlink Mobile as a major U.S. carrier.

SpaceX Targets Tower Leases to Build a New Wireless Network

SpaceX is pursuing agreements for at least 80,000 cellular sites across the United States and is negotiating with at least one large tower operator to reach that goal, according to people familiar with the discussions.

The arrangements under consideration would support the company’s ambition to become a fourth nationwide wireless carrier, these people said, requesting anonymity because the talks are confidential. One party in active discussions is Crown Castle Inc. (NYSE:CCI), a major U.S. tower landlord. Crown Castle, along with American Tower Corp. (NYSE:AMT) and Vertical Bridge Holdings, ranks among the country’s largest owners of cellular tower infrastructure.

Crown Castle Comments and Market Reaction

On an earnings conference call held Wednesday, Crown Castle Chief Executive Officer Chris Hillabrant was asked whether the company is working on lease discussions with SpaceX, Amazon.com Inc. (NASDAQ:AMZN), or other satellite-focused telecommunications players. “You can assume that we’re talking to all parties,” Hillabrant said, while declining to give details about specific customers.

Following a Bloomberg News report on the negotiations, Crown Castle’s stock climbed as much as 10% in late trading. In contrast, shares of AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), and T-Mobile US Inc. (NASDAQ:TMUS) each declined by around 5%.

American Tower declined to comment on the situation. SpaceX and Vertical Bridge did not immediately respond to requests for comment.

Company	Exchange / Ticker	Reported Market Reaction
Crown Castle Inc.	NYSE:CCI	Shares rose as much as 10% in late trading
AT&T Inc.	NYSE:T	Shares fell around 5%
Verizon Communications Inc.	NYSE:VZ	Shares fell around 5%
T-Mobile US Inc.	NASDAQ:TMUS	Shares fell around 5%

Tower Infrastructure at the Center of Strategy

Cellular networks operate by placing antennas on towers distributed throughout the country to carry wireless signals. Mobile carriers generally rent space on these towers rather than owning them outright, as leasing is more economical than building and maintaining dedicated sites, particularly because multiple carriers can share the same facilities.

The potential value of SpaceX’s contemplated tower agreements is described as reaching into the billions.

SpaceX Advances Toward Direct-to-Phone Connectivity

SpaceX Chief Executive Officer Elon Musk has publicly outlined his intention to establish an independent mobile carrier. The company has recently obtained low-band spectrum rights and received Federal Communications Commission authorization to deploy 15,000 satellites designed to connect directly to mobile phones.

“We will be building out our terrestrial networks so there’s broad-based connectivity anywhere that SpaceX and Starlink are allowed to operate,” Musk said during SpaceX’s earnings call this week. Satellite launches plus spectrum acquisition “will pave the way for Starlink Mobile to become a major mobile carrier in the US,” he said.

Hillabrant of Crown Castle described SpaceX’s purchase of low-band spectrum as a “huge milestone” in enabling broad mobile coverage.

Blending Satellite and Terrestrial Coverage

SpaceX has already indicated that it plans to use its home Internet hardware to broadcast mobile signals in the vicinity of customer installations, extending the reach of its service around deployed equipment.