Verizon CEO Says SpaceX Faces $500 Billion Hurdles Entering Mobile Wireless Market

Verizon CEO Dan Schulman stated that SpaceX faces steep barriers entering mobile telecommunications, estimating it will require up to eight years and $500 billion to construct a competitive U.S. network. Traditional terrestrial infrastructure remains 100 to 1,000 times more efficient in urban and suburban areas that generate 98% of Verizon's revenue, Schulman noted. The pushback comes after SpaceX agreed to acquire low-band spectrum and reportedly explored access to 80,000 cell sites to develop a nationwide service. SpaceX recently posted Q3 revenue of $14.58 billion, and its mobile push triggered an approximate 10% drop across incumbent telecom shares.