Verizon CEO Dan Schulman has estimated that SpaceX would require up to $500 billion, around 80,000 cell towers, and as many as eight years to build a nationwide mobile network comparable to Verizon’s. Elon Musk responded by saying it could be done within two to three years, underscoring the ongoing rivalry in the US wireless industry.
- Verizon CEO calls for $500B investment and 80,000 towers for SpaceX network
- SpaceX aims to sell phone plans directly using low-band spectrum bought for $8B
- Elon Musk says SpaceX can build a comparable network in 2 to 3 years
What happened
Verizon CEO Dan Schulman stated that SpaceX would need up to $500 billion in investment plus roughly 80,000 cell towers to create a US mobile network matching Verizon’s scale and coverage. The project would also require a build-out of stores, customer service, and operational systems, taking up to eight years according to his estimate.
Elon Musk countered this publicly on X, asserting that SpaceX could accomplish the build-out within two to three years. This exchange occurred shortly after SpaceX announced plans to enter the US wireless market by selling phone plans directly to consumers, supported by its recent acquisition of low-band spectrum for about $8 billion.
Why it matters
The comments underscore the scale of challenge faced by non-traditional telecom entrants like SpaceX attempting to compete with established wireless carriers. Verizon emphasizes that satellite connectivity alone cannot provide the density and efficiency needed in urban and suburban areas, which generate nearly all of Verizon’s revenue.
SpaceX’s move into the US wireless market has already caused market ripples, with Verizon’s shares dropping notably after the spectrum deal. The contest between a space-based internet provider and legacy telecom networks signals the potential for disruption in how wireless services are delivered and priced nationwide.
What to watch next
Observers will be paying close attention to SpaceX’s progress in cell site deployment and network rollout, alongside how it manages the complex logistics of retail and customer service operations. The timeline to commercial launch and actual coverage will determine if Musk’s optimistic estimates hold true.
Meanwhile, US wireless incumbents like Verizon and AT&T will likely adjust their competitive strategies and investment plans in response to SpaceX’s moves. Regulators may also watch for spectrum usage and market concentration effects as this new rivalry unfolds.