SpaceX isn’t the wireless threat that investors fear — unless someone breaks this unspoken agreement
It would likely be too expensive and time-consuming for SpaceX to build a mobile network on its own. But the major wireless carriers have to hope one of their rivals doesn’t sell out.
The recent concerns about SpaceX potentially disrupting the wireless industry are likely overblown, as building a mobile network from scratch would be a costly and time-consuming endeavor for the company. This is a relief for major wireless carriers, who have been watching the situation closely, as a new player in the market could lead to increased competition and potentially lower profits. However, the fact that SpaceX has the capability to launch a large number of satellites into orbit, which could potentially be used to provide wireless connectivity, means that the company cannot be entirely ruled out as a threat.
The key factor that is currently preventing SpaceX from becoming a major player in the wireless industry is the high cost of building out a network, including the cost of obtaining the necessary spectrum licenses and building out the infrastructure to support a large number of users. Additionally, the company would need to navigate a complex regulatory environment, which would likely be a significant challenge. As a result, it is likely that SpaceX will need to partner with an existing wireless carrier if it wants to enter the market, which could potentially lead to a significant shift in the industry landscape.
What to watch next is whether any of the major wireless carriers will consider partnering with SpaceX, or if one of the smaller carriers will see an opportunity to disrupt the market by teaming up with the company. This could potentially lead to a significant increase in competition in the wireless industry, which could drive down prices and lead to better services for consumers. Additionally, investors will be watching to see if SpaceX will continue to pursue its plans to launch a large number of satellites into orbit, which could potentially be used to provide wireless connectivity, and how the company's plans will impact the overall wireless industry.
Originally reported by marketwatch.com. Expo-News adds analysis for finance & markets readers.