SpaceX and Charter Communications have held executive-level discussions about partnering on a consumer mobile phone offering in the U.S., Bloomberg reported on Friday, citing people familiar with the matter.
A potential partnership would allow Charter to route some of SpaceX’s mobile traffic through its ground-based internet infrastructure, similar to how it supports its Spectrum Mobile wireless service, according to the report.
The arrangement would advance SpaceX’s ambitions to become a direct-to-consumer mobile service provider. The company recently completed its initial public offering and currently generates most of its profits from its Starlink satellite internet business.
SpaceX already offers its Starlink Mobile service as a $10-per-month add-on through T-Mobile US, enabling text messaging and internet-based calls in remote areas.
Charter declined to comment on the discussions, while SpaceX did not immediately respond to a request for comment.
The report follows a Financial Times story on Friday that said SpaceX plans to launch mobile services directly to consumers. Expanding the offering would require additional mobile spectrum and ground-based infrastructure alongside the company’s satellite spectrum assets.
SpaceX recently acquired AWS-3 mobile spectrum rights through a Federal Communications Commission auction, following its purchase of additional spectrum assets from EchoStar last year.
SpaceX President Gwynne Shotwell recently told CNBC that Starlink Mobile could eventually attract more users than the company’s home broadband service.
"Starlink Mobile will far exceed Starlink broadband in the home," Shotwell said. "Not everybody is going to need Starlink broadband in their homes. There’s lots of other options as well."
For Charter, a partnership could strengthen its wireless business following its agreement last year to merge with Cox Communications, which expanded its subscriber base by more than 20%.
Spectrum Mobile currently provides wireless service through infrastructure agreements with T-Mobile and Verizon Communications, while routing a significant portion of customer traffic over Charter’s Wi-Fi network.
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