US telecom retail remains resilient, but Wave7 Research’s Jeff Moore questions whether Starlink can become a national mobile operator. SpaceX could bypass the traditional retail model, but building a competitive mobile business presents different challenges.
US telecom retail remains in reasonably good shape, despite a gradual contraction in carrier-owned stores. The number of outlets operated by Verizon, T-Mobile and AT&T stands at just under 17,000, down by around 400 since spring 2025. Meanwhile, prepaid retail is expanding, with more than 16,000 stores operated by Metro by T-Mobile, Cricket Wireless, Boost Mobile and Total Wireless by mid-2026.
Cable operators and national retailers are also expanding their role in wireless distribution. Against that backdrop, what would it take for SpaceX to enter the US mobile market directly with Starlink Mobile?
SpaceX has made two significant moves towards that goal. On October 8, it announced an agreement to acquire up to 14 MHz of paired spectrum in the 800 MHz band, which it intends to combine with its 2 GHz mid-band spectrum to balance broad coverage with capacity. The company also secured FCC approval for plans to deploy 15,000 satellites for direct-to-device services.
Starlink has already established a successful satellite broadband business. But building a nationwide mobile operation is a different proposition, and history offers plenty of cautionary examples.
Dish made a substantial push to build a nationwide wireless network. LightSquared generated a steady stream of announcements in 2010-12 – I counted 86 press releases during that period – while Google was rumoured to be considering a network of its own in 2007.
If another player were to build a nationwide network, the cable companies would appear among the more credible candidates. They have established customer relationships, extensive broadband footprints and more than 20 million mobile subscribers collectively. Even so, they have largely relied on partnerships rather than building nationwide mobile networks from scratch.
The barriers to entry
Building a national mobile network is a scale business. The investment requires more than spectrum and radio equipment. Operators need millions of customers, extensive distribution, fibre infrastructure, enterprise capabilities, thousands of wireless professionals, relationships across the industry and the resources to navigate federal, state and local regulation.
I saw those challenges first-hand during my years at Sprint. But the market has changed considerably since the early days of US mobile, when wireless penetration was close to zero. Today, connectivity is effectively universal, the three national operators each report coverage exceeding 99%, and churn rates are around 1% or lower.
That makes it harder for a new entrant to win customers from established operators. SpaceX would not be entering an undeveloped market; it would be competing against businesses with extensive networks, established brands and large customer bases.
The question, however, is whether SpaceX would need to replicate that entire model to compete.
Starlink’s retail footprint
Starlink has no substantial company-owned retail network, although its broadband service is available through selected retailers. PCMag reported in December that Starlink had opened a store in a mall near Omaha. I visited the mall in August and found that the store had closed months earlier.
Starlink lists 16 retail partners selling its broadband service, and Wave7 Research has confirmed sales through eight of them, including Tractor Supply. We have also confirmed that Starlink Internet is sold through 2,000 Boost Mobile stores.
That is meaningful progress in distributing satellite broadband to mainstream consumers. It does not, however, establish how SpaceX would sell or support a standalone mobile service, or whether it intends to build a conventional carrier operation.
Carriers and cablecos reshape retail
The national carriers are adjusting their own distribution strategies. Verizon and AT&T have reduced their store footprints, although the declines have been relatively modest. T-Mobile’s closures had also been limited earlier this year, but Wave7 Research has since observed a number of additional closures and will reassess the scale of the changes.
T-Mobile is increasingly directing customers towards digital service through its T-Life app. This summer, Wave7 Research reported that signage at some stores was encouraging visitors to open the app as they entered. AT&T has also been placing greater emphasis on its app.
Prepaid retail, meanwhile, continues to expand. The combined store count for Metro, Cricket, Boost and Total Wireless reached more than 16,000 by mid-2026, representing growth of more than 200 outlets over the preceding year.
Metro and Boost recorded modest declines, while Total Wireless had grown to more than 2,300 stores by May. Cricket has also expanded modestly, supported in part by a targeted push in New York, Los Angeles, Detroit and Miami. Consumer Cellular has been opening its own outlets, with more than 100 stores now operating.
Cable retail is growing gradually, too. Charter has converted more than 130 former Cox stores to Spectrum outlets, while the number of Spectrum and Xfinity stores continues to rise. Xfinity has also opened stores in ten Florida cities.
These developments underline the continuing importance of physical distribution, even as operators shift more customer service and sales activity online.
National retailers remain important
The loss of Target as a wireless sales channel this summer has not stopped other national retailers from expanding their role.
Walmart remains a major outlet for wireless sales, with third-party wireless representatives present at most stores. Verizon and T-Mobile have both introduced unlimited-service offers priced at $25 a month through Walmart since August, intensifying competition for customers. Verizon is also working with sales company PerfectVision to improve its performance in the channel.
Other retailers remain active. Costco has 647 stores across the US and Puerto Rico, with ten more scheduled to open by the end of November. T-Mobile operates kiosks at the 602 Sam’s Club locations. Best Buy continues to sell services for Verizon, AT&T and various prepaid providers, and has recently opened three additional stores.
For established operators, these outlets offer access to customers without requiring every sale to take place in a carrier-owned store. They also illustrate why retail reach remains an important competitive asset — even if it need not be owned outright.
Economics versus physics
Starlink has made considerable progress as a satellite broadband provider, including expanding its distribution through national retailers. But moving from satellite internet to a nationwide mobile business would introduce a different set of commercial and operational challenges.
The conventional carrier model demands scale, established customer relationships and substantial investment in distribution and network infrastructure. SpaceX could avoid some of those requirements by selling capacity wholesale to mobile operators, partnering with existing carriers or concentrating on customers and locations that terrestrial networks serve poorly.
The technical and commercial limits of satellite connectivity would still matter. Available capacity, spectrum, service quality and the economics of serving different markets would help determine how far Starlink could compete with terrestrial networks — and where partnerships would make more sense than direct competition.
SpaceX does not necessarily need thousands of stores to become a significant player in mobile connectivity. But it does need a business model that can turn its satellite infrastructure and spectrum into a service customers want, at a price that works.
For now, Starlink’s established strength is providing broadband where terrestrial infrastructure falls short, alongside the potential to extend mobile coverage through partnerships with national operators. Whether SpaceX ultimately chooses to compete directly with those operators, supply them with capacity or pursue both strategies remains an open question.
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