Starlink direct-to-device is moving from a coverage add-on to a broader platform play. New reporting says SpaceX is exploring a Starlink-branded phone, plus wider direct-to-device internet and other services.
What SpaceX is exploring
Reuters reported on February 5, 2026, that SpaceX is weighing new Starlink lines. The list includes a possible “Starlink phone,” expanded Starlink direct-to-device internet, and a space-tracking service. Sources told Reuters the handset idea has been discussed for years.
Elon Musk also signaled the idea is plausible in a recent reply on X. Reuters quoted Musk saying a phone is “not out of the question,” and he described a device built for high performance per watt neural nets. That framing links hardware to SpaceX’s AI narrative.
The timing matters because Starlink direct-to-device is no longer a small experiment. Reuters noted roughly 650 Starlink satellites in orbit were built for the early direct-to-device effort. Musk has also written a goal of “full cellular coverage everywhere on Earth.”
Why Starlink matters to the IPO story
Starlink direct-to-device is part of a wider business shift. Reuters reported on January 30, 2026, that SpaceX generated about $8 billion in EBITDA last year on roughly $15–$16 billion of revenue. Sources told Reuters Starlink was the main revenue driver, at about 50% to 80% of total revenue.
That cash flow helps fund Starship and larger next-generation satellites. It also helps explain why investors focus on Starlink direct-to-device optionality. A handset brand could widen distribution, reduce reliance on partners, and deepen customer lock-in.
The IPO timeline remains unconfirmed, but Reuters separately reported that SpaceX is weighing a mid-June 2026 IPO at about a $1.5 trillion valuation, based on a Financial Times report.
Spectrum and regulation: the real bottleneck
Starlink direct-to-device relies on spectrum access and policy frameworks. In the U.S., the FCC has been building a “Supplemental Coverage from Space” (SCS) model that lets satellites work with terrestrial licensees to extend coverage in dead zones. The FCC adopted the framework in March 2024.
SpaceX has also been buying spectrum to support Starlink direct-to-device ambitions. Reuters reported that SpaceX agreed in September 2025 to buy EchoStar spectrum for about $17 billion, a deal framed as crucial to expanding Starlink’s 5G connectivity business. The deal also included a commercial agreement for Boost Mobile subscribers to access Starlink direct-to-cell services.
On January 9, 2026, Reuters reported the FCC approved SpaceX’s plan to deploy an additional 7,500 Gen2 Starlink satellites, bringing the authorized total to 15,000. Reuters said the approval supports higher speeds and direct-to-cell connectivity outside the U.S., while setting deployment milestones through 2031.
These steps raise pressure on carriers. If Starlink direct-to-device improves, the “no coverage” areas that once justified premium roaming or niche plans shrink. Carriers may still benefit as partners, but their bargaining power can weaken.
Competitive impact: telcos, OEMs, and “space connectivity” peers
A Starlink phone would blur lines between satellite broadband and the mobile ecosystem. Today, Starlink direct-to-device has leaned on partnerships, including T-Mobile in the U.S. and international carrier deals. Reuters has reported multiple Starlink direct-to-device tie-ups, including a major agreement with Veon, and planned launches by Kyivstar in Ukraine.
For handset makers, a Starlink phone introduces a new branded endpoint that could compete for distribution and services revenue. For mobile rivals, the risk is less about urban substitution today and more about coverage economics, emergency services, and premium “always connected” add-ons.
Public-market peers feel the narrative shift fast. MarketWatch recently pointed to a space-stock selloff that hit names like AST SpaceMobile and Rocket Lab, underscoring how investor risk appetite moves with competitive headlines and partnerships.
What to watch next
1) Product scope
Starlink direct-to-device can mean texting first, then data, and later voice. Watch for concrete timelines, supported devices, and roaming terms. Reuters has described phased rollouts in partner programs, which will shape adoption patterns.
2) Interference and guardrails
The FCC has already had to balance satellite ambitions with carrier concerns. Reuters reported the FCC allowed higher-power operations for Starlink and T-Mobile despite objections from AT&T and Verizon, with conditions to address harmful interference.
3) Valuation reset across the segment
If Starlink direct-to-device becomes a scalable consumer platform, investors may price more “winner-take-most” dynamics into satellite connectivity. That can compress multiples for smaller rivals, even when their tech is strong.
Sources
text Reuters (Feb 5, 2026): https://www.reuters.com/ (Starlink phone and new services story, also carried by MarketScreener) Reuters (Jan 30, 2026): https://www.reuters.com/ (SpaceX profit and Starlink revenue driver) Reuters (Jan 9, 2026): https://www.reuters.com/ (FCC approval for 7,500 more Gen2 satellites) FCC (SCS framework): https://www.fcc.gov/ Reuters (Sep 8, 2025): https://www.reuters.com/ (EchoStar spectrum deal)