Qualcomm to Supply 5G Network Gear for SpaceX's Starlink Mobile in What It Calls Its Biggest 5G Deal

QCOM signed a multiyear deal to provide key network technology for Starlink Mobile, the U.S. mobile service of SPCX, supplying the Dragonwing cellular infrastructure hardware and software that will run in its base stations. The equipment includes radios, baseband units and Layer 1 software for a nationwide terrestrial 5G network, with deployment across tens of thousands of U.S. cell sites starting in 2027, and Qualcomm described it as its biggest 5G deal yet. Financial terms were not disclosed.

The terrestrial layer is meant to "complement Starlink's satellite capabilities," filling voice, video and data gaps that the satellite network cannot cover on popular smartphones. It is the latest step in SpaceX's push to take on the major carriers: last month it agreed to buy a nationwide spectrum portfolio in the 800 MHz band, and the Washington Post reported this week that it is in talks to acquire EchoStar's Boost Mobile. Starlink accounted for 36% of SpaceX's third-quarter revenue and 85% of its operating profit.

For Qualcomm, the deal is a high-profile win in network infrastructure, a market it has targeted since a bigger 5G push in 2020 and where it previously worked with Verizon, Dish and Vodafone. Durga Malladi, an executive vice president, said the partnership is "advancing 5G today, with an opportunity to lay the foundation for AI-native 6G in the years ahead". Qualcomm is best known for the modems and radios inside devices rather than base stations, so the contract also tests its ability to scale a newer business line.

QCOM shares were up 1.8% by late morning, per SentiSense market data, ahead of the company's fiscal fourth-quarter results after the close, where the consensus EPS estimate is about $2.17. Open questions include the deal's value, which tower companies such as AMT will host the new sites, and how many new towers the build-out may require, which SpaceX has not disclosed.