SpaceX has said it intends to build Starlink Mobile into a direct competitor to AT&T, T-Mobile and Verizon, rather than simply supplementing their networks from space. President Gwynne Shotwell told investors on an earnings call that spectrum bought from EchoStar includes terrestrial rights, which SpaceX plans to use to build out ground infrastructure alongside its satellite capacity, creating what she called "a true mobile service". The move matters because it would put SpaceX in direct competition with the established carriers rather than as a partner filling coverage gaps, a significant strategic shift given the scale of the US wireless market.

Shotwell noted that the three big carriers generate roughly $600 billion a year combined and said she expects Starlink to win over a meaningful share of their customers by eliminating dead zones and performing better during natural disasters. Next-generation mobile satellites are due to launch next year, with service starting by the end of 2027. Rather than large cell towers, SpaceX plans small "femtocell" base stations, with Elon Musk suggesting existing Starlink dishes on homes and businesses could double as cellular base stations. Analysts, including Craig Moffett, have cast doubt on the plan, noting SpaceX lacks the spectrum and infrastructure of major carriers, while T-Mobile already partners with SpaceX and AT&T and Verizon have deals with rival satellite firm AST SpaceMobile.