SpaceX intends to develop terrestrial components for its Starlink service to establish a mobile offering, according to company President Gwynne Shotwell.
Shotwell stated that the spectrum acquired from EchoStar includes terrestrial capabilities, which the company plans to utilize for building out its ground-based infrastructure.
We definitely intend to build out terrestrial.
The expansion aims to provide the necessary infrastructure to transform Starlink into a mobile service, Shotwell added.
Analyst perspectives on market competition
David Barden of New Street Research noted the disparity in available spectrum between the companies.
The spectrum available to SpaceX compared to 1,000 MHz held by terrestrial players
It makes no sense for SpaceX to replicate terrestrial players' 30-year builds
However, some market observers believe the potential of this business segment is being overlooked. David Wagner, a portfolio manager at Aptus Capital Advisors, agreed with comments suggesting that investors may be undervaluing this side of the SpaceX business.
