SpaceX’s plan to take on AT&T, Verizon, and T-Mobile now has a major backer. Qualcomm has signed a multiyear deal to supply the radio equipment and software for Starlink Mobile’s nationwide 5G network, which starts rolling out across tens of thousands of U.S. cell towers in 2027.
The chipmaker calls it its biggest 5G deal yet. In the long term, it could mean a fourth major choice for the country's phone plans. The market has had three big carriers since T-Mobile merged with Sprint, and more competition usually puts pressure on prices and perks.
A fourth carrier option is taking shape
Your typical phone network in the U.S. comes from one of three companies. Your options are AT&T, Verizon, or T-Mobile, unless you pick a cheaper prepaid brand that rents space on their networks.
But those brands keep getting absorbed by the same three giants. Verizon bought TracFone in 2021, and T-Mobile took over Mint Mobile and Ultra Mobile in 2024. Even Mint recently celebrated its 10th anniversary with a $10-a-month deal, and every dollar of it still runs through T-Mobile’s network.
Recently, Qualcomm announced that it has signed a multiyear agreement to supply radio equipment, baseband units, and software for Starlink Mobile’s planned nationwide 5G network. Radio equipment sends and receives signals from your phone, while baseband units process that traffic at each tower.
The gear will go up across tens of thousands of large cell towers in the U.S. starting in 2027. Qualcomm didn’t share the value of the deal, but called it “our biggest 5G deal yet.”
SpaceX’s plan is to pair the ground towers with its Starlink satellites. Towers would handle most traffic in towns and cities, while satellites could fill in where towers don’t reach. The company has already been buying spectrum, the radio frequencies carriers need to operate, and exploring deals with cell tower companies to build out its network.
Qualcomm says its equipment will support several frequency bands and can be rolled out in stages, starting with ground-based 5G. Its radio tech uses beamforming, which aims signals directly at your phone instead of broadcasting in every direction.
It should help SpaceX squeeze more data out of the spectrum it owns, which is important for a newcomer with less of it than the big three.
A $50 billion wall stands in SpaceX’s way
This deal is a big step for Qualcomm, just as much as it is for SpaceX. Qualcomm is best known for the Snapdragon chips inside your favorite flagship phones, although it’s been trying to grow beyond phones.
It already helps power 5G networks in Japan and Vietnam, and this deal pits it against Marvell, Broadcom, and Intel in the market for cell tower chips.
Reuters notes that competing with AT&T, Verizon, and T-Mobile takes enormous investment, and those carriers have spent decades building their networks.
AT&T alone plans to spend $23 billion to $24 billion on its network this year, Verizon expects to spend around $16 billion to $16.5 billion, and T-Mobile plans about $10 billion. Together, the big three put roughly $50 billion a year into networks.
