This article first appeared on GuruFocus .
Space Exploration Technologies Corp. ( SPCX , Financials ) has secured a multi-year deal with Qualcomm to provide network technology for Starlink Mobile as it looks to challenge major U.S. wireless carriers.The businesses stated base stations enabling high-capacity mobile coverage will employ Qualcomm's Dragonwing cellular infrastructure hardware and software.The terrestrial network will complement Starlink's satellite system, which is already delivering broadband service to millions of subscribers.SpaceX is attempting to rival Verizon, AT&T and T-Mobile by merging satellite communication with traditional cellular infrastructure.Financial specifics were not given, but the planned implementation is slated to begin in 2027.The deal comes after SpaceX recently acquired countrywide 800 MHz spectrum rights and reportedly talked about buying EchoStar's Boost Mobile division.Starlink has been a key driver of SpaceX's profitability, representing 36% of sales and 85% of operating profit in the third quarter.SpaceX aims to build tens of thousands of cell sites with Qualcomm technology but has not revealed tower partners or how many additional towers are needed.The deal gives investors a better way into the U.S. cellular industry, but also exposes them to big infrastructure expenditures and competition dangers.SpaceX will be announcing tower agreements and other rollout specifics as the launch is scheduled for 2027, so this will be another catalyst.
