Elon Musk is open to the possibility of buying Verizon.
Acquisition of EchoStar spectrum may transform SpaceX into a global carrier.
SpaceX will acquire EchoStar's AWS-4 and H-block spectrum licenses, which are designated for both mobile and satellite communications. EchoStar's CEO, Hamid Akhavan, stated that this spectrum would significantly enhance SpaceX's direct-to-cell capabilities. Musk has been considering these possibilities.
Musk said on the All-In podcast that acquiring EchoStar's spectrum would enable satellites to provide high-bandwidth connectivity to phones. The frequencies acquired are not compatible with current chipsets, and it may take about two years for phones supporting the spectrum to be released.
SpaceX will also need to develop satellites capable of communicating on the specified frequencies.
Once the satellites are built and smartphone manufacturers integrate support for the new frequencies, customers should have the ability to perform data-intensive activities from nearly anywhere.
Phones compatible with the acquired spectrum are expected to begin shipping in roughly two years, with satellite construction happening concurrently.
EchoStar has international spectrum assets, allowing Starlink to potentially become a global carrier. SpaceX does not anticipate displacing other carriers, as they possess substantial spectrum holdings.
SpaceX intends to collaborate with existing telecom companies rather than replace them, due to the carriers' extensive spectrum resources.
When questioned about the possibility of acquiring Verizon to gain more spectrum, Musk indicated it was not impossible.
Although Verizon is a major US carrier with strong financials and is not currently for sale, Musk's comments suggest his ambition to increase his involvement in the smartphone market.
Currently, the company is focused on collaborating with telecom companies, with reports suggesting SpaceX might lease some spectrum rights to T-Mobile.
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