SpaceX Lobbying for Phone Unlocking Rules Amid Ambitious Network Expansion Plans

SpaceX has begun making lobbying filings in support of phone unlocking rules making it easier to switch your phone between wireless providers. This development comes as the company is “considering” launching a Starlink retail product and could eventually build its own terrestrial US mobile network.

What Is SpaceX’s Current Stance on Phone Unlocking?

SpaceX’s lobbying efforts align with broader industry calls to simplify phone unlocking processes. The Biden FCC was on the cusp of installing such rules before the Trump administration, hand in hand with giant telecoms, dismantled them. The current FCC will have to decide whether they love Verizon/AT&T/T-Mobile or Elon Musk more.

How Does SpaceX’s Network Expansion Fit Into Its Broader Strategy?

SpaceX’s interest in wireless infrastructure aligns with its long-term vision for Starlink, the company’s satellite-based internet service. The company’s president and chief operating officer, Gwynne Shotwell, told investors during a recent IPO roadshow that the group was considering launching a Starlink retail product and could build its own terrestrial US mobile network, according to four people familiar with the matter.

However, technical and regulatory hurdles remain. They’re already struggling under the load of 10 million low-Earth orbit (LEO) satellite users; the idea, as proposed in their IPO prospectus, that they’ll very quickly surge to more than 300 million subscribers was already the stuff of fantasy.

What Are the Challenges of Building a Terrestrial Network?

Building a terrestrial wireless network requires significant spectrum licenses, which are tightly controlled by the FCC. New Street Research estimates that the three US mobile network operators have a total of about 1,020MHz of spectrum, while SpaceX has just 65MHz.

Regulatory approval for a new network would also face political resistance. Directly threatening AT&T and Verizon — some of the most politically powerful companies in the country — wouldn’t be a cake walk, even for Musk. And while Musk clearly has influence at the FCC, turning Starlink into a full wireless/cellular/satellite carrier would be very slow and very expensive.

Why Is This Important for the Telecommunications Industry?

SpaceX’s involvement could disrupt the existing telecom landscape by introducing a new competitor with a unique mix of satellite and ground-based infrastructure. However, analysts caution that the company’s current resources may not support a full-scale rollout.

The company currently offers an “out of range” option via T-Mobile. So while a Starlink jump into wireless is certainly possible, it’s more likely that this is just putting a toe in the water in a way that might help them extract more favorable terms from their existing cellular partners. It’s also likely more IPO fluffing by people who know U.S. journalists and investors no longer truly inhabit operational reality.

What’s Next for SpaceX’s Wireless Ambitions?

While SpaceX has not provided a clear timeline for potential network expansion, its lobbying activities suggest the company is preparing for long-term regulatory engagement. The outcome could depend on FCC policies, market demand, and technological advancements in satellite-terrestrial integration.

For now, industry observers remain skeptical about the feasibility of SpaceX’s ambitions. The technical and financial barriers are enormous. Unless SpaceX secures major partnerships or breakthroughs, its wireless plans may remain theoretical.