Charter and SpaceX discuss satellite mobile service; Charter shares rise 3% on deal that would extend network reach into rural areas without tower buildout.
SpaceX and Charter Communications are discussing a mobile phone partnership in the U.S., people familiar with the matter said. The deal would let Charter customers place calls and use data through SpaceX's satellite network in areas where terrestrial cell service is thin or absent.
Charter shares rose 3% on the news, which broke late Wednesday. The cable operator already sells mobile service through a wholesale agreement with Verizon. Gaining satellite coverage would give it a backup network for rural and remote zones without building its own towers. For SpaceX, a Charter deal would add a large, established customer for its direct-to-cell satellite service.
The structure remains under negotiation. One open question is whether Charter would resell SpaceX capacity under its own brand or offer it as a separate add-on. Pricing and revenue-sharing terms have not been finalized, the people said.
Charter has pushed deeper into mobile since launching its Spectrum Mobile brand in 2018. The service now has roughly 8 million lines, making it one of the larger mobile virtual network operators in the U.S. Adding satellite coverage would let Charter compete more directly with T-Mobile and Verizon on network reach, not just price.
SpaceX's Starlink unit has signed wholesale satellite-access deals with carriers globally. A Charter deal would be its first with a major U.S. cable operator. The company already has a similar arrangement with T-Mobile for text and voice services, announced in 2022. That deal has not yet launched commercially.
The talks come as the Federal Communications Commission considers rules that would let satellite operators use terrestrial spectrum for direct-to-phone services. The agency has signaled it wants to expand rural connectivity without giving satellite providers an unfair advantage over traditional carriers.
Charter's Alpha Score from AlphaScala sits at 36 out of 100, a Mixed rating in the Communication Services sector. The score reflects the company's heavy debt load and slowing broadband subscriber growth. Steady cash flow from its cable and mobile operations keeps the rating from falling further.
Charter declined to comment. SpaceX did not respond to a request for comment.
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