Starlink Mobile vs T-Mobile: Musk’s satellite strategy faces a new challenge

Elon Musk’s plans to expand Starlink into the mobile industry are facing scepticism from one of the US’ biggest telecom operators. T-Mobile CFO Peter Osvaldik has dismissed Starlink Mobile as a serious wireless threat, while questioning whether SpaceX’s approach can realistically compete with traditional cellular networks. Musk and SpaceX president Gwynne Shotwell have said Starlink could help eliminate mobile dead zones and bring connectivity to areas where conventional cell towers are difficult to deploy.

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However, Osvaldik argues that satellite connectivity faces fundamental limitations in cities, where buildings and other structures can block signals. SpaceX is also considering another approach involving a large number of small cell stations, but T-Mobile has questioned whether that plan can work at the scale required.

T-Mobile says Starlink faces major challenges

At Citi’s 2026 Global TMT Conference on Wednesday, September 16, Osvaldik said T-Mobile does not consider Starlink Mobile a serious wireless competitor. He even criticised what he described as frequent changes to SpaceX’s strategy, arguing that repeatedly changing plans for building a wireless network would not be accepted by a conventional telecom company.

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SpaceX outlined its Starlink Mobile plans during its first earnings call in August. The company believes its satellite network can help provide connectivity in remote areas and reduce mobile dead zones. Starlink currently has around 650 direct-to-cell satellites in orbit, alongside a broadband constellation of more than 10,000 satellites.

Shotwell has also said SpaceX expects to compete for customers of major telecom operators, arguing that its service could attract some of them.

Why cities could be a problem for Starlink

Osvaldik believes Starlink’s direct-to-cell technology faces a different challenge in cities. Its low Earth orbit satellites can communicate with phones, but buildings and other structures can obstruct signals.

But SpaceX has another plan - deploying femtocells, or small cell stations, using Starlink equipment installed on buildings. Musk has described these as Starlink antennas placed on the roofs of homes and businesses to provide connectivity directly to phones on the ground.

However, Osvaldik estimates SpaceX could need around 1 billion femtocells to match the coverage of existing cellular networks. He called that scale difficult to imagine.

For users in remote locations, Starlink could still offer another connectivity option. But replacing a nationwide cellular network would require a much larger infrastructure footprint, especially if billions of small stations are needed.