Key insights
- SpaceX's Starlink is partnering with US Mobile to offer bundled internet and mobile data plans. This strategic move aims to boost Starlink subscriber numbers ahead of the anticipated SpaceX IPO, potentially increasing the valuation of Starlink, considered SpaceX's most profitable business.
SpaceX (SPAX.PVT) has expanded Starlink's coverage with a new partnership with US Mobile.
Yahoo Finance Senior Autos Reporter Pras Subramanian goes over the details.
Starlink and US Mobile announced a new partnership that combines home satellite internet with mobile data plans. So, what does this deal look like here? I'm noting that I wasn't familiar with US Mobile, but they they don't own their own fiber lines. You can choose AT&T, Verizon, T-Mobile, etc.
Yeah, they're they're an MVNO, which is a mobile virtual network operator. They just lease that space from these various um, other mobile carriers, which is actually a they're the only the only the only company that does that where you can actually pick which one you want to use. They call them different names like Dark Star for for AT&T and and warp for Verizon and Lightspeed, I think for T-Mobile. Yeah, yeah. Really interesting stuff. But basically what what happens is you you the bundle is that you you get the cheapest
offering uh at what at US Mobile plus a a cheaper Starlink plan. So you basically the cheapest plan you get for $47, unlimited unlimited data and texting and calling, plus uh 100 Mbps download speeds uh for Starlink as part of the of the.
It's not bad. You could run, run Netflix on that.
Yeah, I think I mean, and if you want 200, you can pay 30 bucks more, right? And then there's the other other plan there. So, you can kind of pick and choose what bundle you want. So it's a pretty discounted bundle compared to Starlink standalone, right? So, I think this is a big deal, but it's obviously what's happening here. We're months out the SpaceX IPO.
Oh.
Nice way to boost some subscribers there for Starlink, their most profitable business, right? That's what we're seeing.
This is what Yeah, this is what I was going to ask. So, no, I was just going to ask you like, what does this mean for the SpaceX IPO? Because that is the story of the year.
I think this is it makes sense why this is happening now, right? You know, uh US Mobile, right, they're just a company that exists. No big deal, but it's more so about Starlink. This is why this is an important deal. Uh PitchBook kind of, I think they estimated around 9.2 million subscribers for uh Starlink for SpaceX. Um, you got to imagine, they said this deal with US Mobile is limited, right? So, depending on how limited it is, it could actually move the needle significantly for those subscriber base. And that's a big deal when you're trying to, you know, on the road show circuit, trying to pitch uh big banks and investment banks like how much, you know, you want to get charge for this stock, how much you want to get for the stock, big big allocations. If you have a massive subscriber base that's growing and growing and growing, that probably helps that case, right?