SpaceX Seeks Access to 80,000 US Cell Sites for Wireless Network, Report Says

SpaceX is in talks with cellular-infrastructure companies to secure access to at least 80,000 sites across the United States, Bloomberg News reported, citing people familiar with the matter. The potential agreements would support the company’s effort to build a nationwide wireless network and could move it closer to becoming a fourth US wireless carrier.

Scale of the proposed network

The 80,000 sites would represent roughly half of the 158,500 purpose-built cell towers operating in the US last year, according to figures from the Wireless Infrastructure Association cited by Reuters. Leasing existing infrastructure could give SpaceX a faster route into terrestrial wireless than constructing a nationwide tower network from scratch.

TD Cowen estimated that a nationwide terrestrial network would cost more than $80 billion and require years of additional investment. That estimate underlines the financial and operational challenge facing any new entrant, even one with an established satellite communications business.

Tower companies have not confirmed deals

Crown Castle operates about 40,000 US cell towers, while American Tower has about 42,000 US sites. Privately held Vertical Bridge owns around 18,000. Crown Castle CEO Christian Hillabrant said the company was talking with “all parties” when asked about potential leases involving SpaceX and Amazon, but he did not identify customers.

Reuters said Crown Castle, American Tower, Vertical Bridge and SpaceX did not immediately respond to requests for comment. The reported talks therefore do not establish that leases have been signed, how many sites SpaceX would ultimately use, or when a consumer wireless service might launch.

Illustrative file photo of telecommunications infrastructure in England; not a site involved in the reported talks. Photo: Dan Stephens / Unsplash. Unsplash License; cropped to 16:9. Image source; license.

Sources

Reuters report