SpaceX Might Soon Launch a Starlink Mobile Internet Service, Competing Directly With AT&T and Verizon

Space Exploration Technologies (NASDAQ:SPCX) is much more than just a rocket-launching company. SpaceX has several businesses, and it now appears to be entering the retail mobile service market as well.

Financial Times reported that SpaceX President Gwynne Shotwell told investors at a recent IPO roadshow that SpaceX is considering launching a Starlink retail product, and could build its own wireless communications infrastructure.

Such a move would put SpaceX, which had its record-breaking IPO two weeks ago, in direct competition with T-Mobile US (NASDAQ:TMUS), Verizon Communications (NYSE:VZ), and AT&T (NYSE:T).

How would such a venture fit into SpaceX’s portfolio? Let’s take a closer look.

Starlink is SpaceX’s only profitable business right now

SpaceX has three main business units. First is the rocket-launching business, which is particularly notable because of its scope. SpaceX has completed more than 660 missions, with about 85% of them using reusable launch vehicles that reduce costs and turnaround times. SpaceX has completed missions to the International Space Station and is currently the only commercial company authorized by NASA to send human missions into orbit.

Second is artificial intelligence, which is primarily made up of xAI, the company launched by Elon Musk and absorbed by SpaceX earlier this year. The AI component includes Grok, the large language model and chatbot, and the social media platform X (formerly known as Twitter). SpaceX has put a lot of emphasis on AI, saying that it represents $26.5 trillion of the $28.5 trillion total addressable market (TAM) the company identified before filing to go public.

However, neither of those businesses was profitable in 2025. SpaceX disclosed in its prospectus that the Space segment had revenue of $4.08 billion but posted a loss of $657 million. The AI unit had $3.1 billion in sales in 2025 but incurred a $6.35 billion loss.

The Connectivity division that includes Starlink, however, is a different story. Connectivity had revenue of $11.38 billion in 2025, with income of $4.42 billion for the year. Revenue was up 49.8% from the previous year, and income from operations jumped an impressive 120%.

Management disclosed in the company’s prospectus that it saw a $870 billion market opportunity for Starlink broadband internet services, and a $740 billion opportunity for mobile services.

Where would Starlink fit in?

Currently, Starlink provides its mobile and broadband services, powered by a network of more than 9,600 satellites in low-Earth orbit. The company currently offers connectivity in 30 countries and six continents, serving 10.3 million customers. It also purchased wireless spectrum licenses from EchoStar for the Starlink satellite network, which provides direct-to-cell service using EchoStar's wireless airwaves, and offers direct-to-cell connectivity in the U.S. through T-Mobile.

However, by operating its own mobile retail business, SpaceX could reach subscribers without routing the business through carrier partners.

That would mean taking on companies with entrenched positions in the highly competitive mobile retail market. Verizon reported having 146.8 million wireless customers in its most recent earnings report; AT&T had 109.3 million mobile subscribers; and T-Mobile reported 143 million customers.

But Oppenheimer has already identified SpaceX as a threat to these companies. In a note to investors, Oppenheimer analysts predicted that SpaceX can disrupt the $1.6 trillion U.S. communications industry through Starlink. Oppenheimer projects that Starlink will increase its U.S. customer base to 15 million by 2030. Considering its global customer base is just over 10 million, the projected jump would be significant growth.

If SpaceX can use its satellite network -- bolstered by the rocket-launching business already in place to deploy Starlink’s satellite constellation -- to compete with legacy mobile companies, it will avoid the need for poles, cables, and buried fiber lines that are costly to maintain. Over time, that competition could weigh on the profit margins of Verizon, T-Mobile, and AT&T, making SpaceX an interesting investment for investors playing the communications industry.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.