Reports claim to develop a "Starlink phone" Elon Musk: SpaceX has not developed a phone

Elon Musk says SpaceX is not developing a phone.

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It is reported that SpaceX is planning to create a “Starlink phone” to enter the trillion-dollar communication market through terminal devices.

Sources close to the matter reveal that as SpaceX prepares to launch an IPO this year, the company plans to expand its Starlink business into more new markets, including launching the Starlink phone, direct internet connections to devices, and space-based tracking services.

Three insiders disclosed that the related plan includes developing a mobile device that can connect directly to the Starlink satellite constellation, and this potential device could even compete with smartphones. However, the specific design details of the device and when Musk will start development are not yet clear.

If SpaceX actually launches a phone, it will be a major expansion of its Starlink product line. In just six years, Starlink has grown into an internet network composed of 9,500 satellites, continuously opening new markets.

Currently, about 650 Starlink satellites in orbit are dedicated to “direct-to-device” services. Musk wrote on SpaceX’s blog Monday that the ultimate goal is: “to provide complete cellular network coverage anywhere on Earth.”

Similar to the concept of a “space data center,” Starlink’s ability to expand into cellular network form heavily depends on SpaceX’s “Starship” rocket. Starship can launch more and higher-performance next-generation Starlink satellites at once, enabling stronger internet signals directly to phones.

At present, SpaceX is rapidly expanding through the fast production line of Starlink and reusable rockets. These two advantages will also help Musk realize a more aggressive plan—building data centers orbiting the Earth—which is one of the reasons SpaceX recently announced the merger with xAI.

Although the market is still in its early stages, analysts expect the direct-to-device market could reach several billion dollars in the coming years.

In October last year, SpaceX applied for the “Starlink Mobile” trademark; this year, it also filed multiple patents to enhance Starlink’s connection capabilities with ground-based small mobile devices (not limited to official terminals).

Previously, Starlink partnered with T-Mobile to connect its satellite network directly to the latter’s mobile network, but this is a different path from SpaceX manufacturing its own phones.

Sources say that SpaceX has been working on a phone plan for many years. Last week, Musk responded to a social media user’s idea of a “Starlink phone” by saying: “It’s not impossible in the future.”

Musk also stated: “It will be a device completely different from existing phones, optimized for the maximum performance/power ratio of neural networks.”

SpaceX’s biggest investment in entering the cellular communication field was last year’s $19.6 billion acquisition of satellite spectrum resources from EchoStar. While some believe this could threaten mobile operators like Verizon and AT&T, SpaceX positions itself as a supplement rather than a competitor to these networks.

Armand Musey, president of Summit Ridge Group, said: “If Starlink makes its own phones and competes with carriers, it could be difficult—other carriers might refuse to cooperate. It’s like General Motors making its own tires and selling them to other car companies.”

Currently, SpaceX is the world’s largest satellite operator, with over 9 million broadband users, and has signed government contracts related to Starlink and military-grade satellite networks “Starshield.”

Two individuals familiar with the company’s finances said that last year, SpaceX’s revenue was between $15 billion and $16 billion, with profits around $8 billion, with Starlink being the main source of income, accounting for 50% to 80% of total revenue.

Last week, SpaceX also announced the launch of a new product called Stargaze. This service will use small mobile cameras installed on satellites to monitor the increasingly crowded satellite traffic in low Earth orbit. Currently, there is no unified orbital traffic management standard internationally.

Although SpaceX has stated it will provide some data free of charge to satellite operators, this business may be more attractive to governments. The Pentagon and the U.S. Department of Commerce’s Office of Space Commerce are collaborating with several space tracking startups to enhance orbital monitoring capabilities through ground-based radar and SpaceX systems.

However, SpaceX’s expansion in low Earth orbit tracking has also raised concerns within the industry, with worries that the U.S. government might become overly dependent on a single company.

Richard DalBello, former head of the U.S. Office of Space Commerce, said: “Stargaze can provide rapid space tracking services for low Earth orbit systems, but the government should not rely on it entirely.”

(Article source: Caixin)