Tdorsey1776
Oct 16, 5:25 PM
$VZ Analysis-SpaceX's spectrum deal still leaves it far from rivaling telecom giants Reuters
By Harshita Mary Varghese
Oct 16 (Reuters) - SpaceX called its recent multibillion-dollar purchase of US airwaves a critical step towards building a mobile network, but constructing a true rival to major American carriers will require a terrestrial network and likely years of work and billions more.
The rocket and satellite company will likely need to invest heavily in ground infrastructure, customer service, handset subsidies and promotions - costly parts of the wireless business in which AT&T (T.NaE), Verizon and T-Mobile already have extensive operations.
Building a network would cost more than
$80 billion, according to TD Cowen, and add to SpaceX's capital demands as it pours money into its Starship rocket program, AI infrastructure, and Terafab chip factory.
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