Musk Outlines Much Larger Starlink Revenue Ambition as SpaceX's Connectivity Business Grows
SpaceX's Starlink connectivity business generated $5.2 billion in third-quarter revenue, up 69% from a year earlier, or about $21 billion on an annualized basis. On the Oct. 20 earnings call, Elon Musk said he sees a route to several hundred billion dollars in yearly connectivity revenue, roughly ten times or more the current run rate. Getting there would require Starlink Mobile to become a major U.S. carrier, and service on its new spectrum is not scheduled to begin until early 2028.
SpaceX’s Starlink connectivity unit posted $5.2 billion in third-quarter revenue, 69% higher year over year and 22% above the prior quarter, or roughly $21 billion annualized. It added 1.6 million consumer subscribers to reach 13.6 million; enterprise and government revenue rose 91%, and gross margin was 55%, helped by a one-time gain.
Starlink Mobile ended the quarter with 22 million monthly users, up 37% in three months. SpaceX won FCC clearance for 15,000 Mobile V2 satellites and agreed to buy low-band spectrum; new-spectrum service is not slated until early 2028. AT&T and Verizon together booked about $264 billion in 2025.
If Starlink Mobile scales as envisioned, it could intensify competition among U.S. wireless carriers, potentially affecting prices and coverage for consumers, especially in underserved areas. Rural and remote users may gain options, while incumbent carriers and their employees could face pressure. Investors in telecom and space companies may see shifting valuations. The timeline to 2028 means near-term effects are likely limited, and outcomes depend on execution, spectrum deployment, and market demand.