SpaceX Warns Australia Could Miss Out On Satellite Mobile Rollout

Elon Musk's space venture has signaled it may bypass Australia when expanding its satellite-powered mobile network if it is required to compete in a spectrum auction for essential frequencies.

SpaceX, the company behind the Starlink system, has urged the government to directly assign the wireless bands it needs to expand its satellite services instead of offering them through a bidding process. The dispute centres on access to spectrum critical for enabling mobile coverage via satellites.

Canberra has pledged that by late 2027, voice calls and SMS will be available across almost all of Australia's land area. This initiative, referred to as the Universal Outdoor Mobile Obligation, places responsibility on telecommunications providers to ensure widespread connectivity. Achieving this goal depends on Low Earth Orbit satellites and emerging direct-to-device technology, which enables standard mobile handsets to connect to signals transmitted from space.

During a Senate inquiry this week, a senior SpaceX representative criticised the possibility of having to compete with domestic telecom companies for access to the 2GHz mobile satellite services band. The Australian Communications and Media Authority has indicated it is weighing up whether to allocate the spectrum through an auction.

David Goldman, SpaceX vice president for satellite policy, argued that such a move would run counter to the intent of lawmakers seeking to eliminate connectivity gaps. He said auctioning the spectrum would be inconsistent with how similar frequencies are handled globally and could place Australia at odds with international practice. According to Goldman, this could result in higher costs for consumers or even prevent the service from being introduced at all.

He added that uncertainty around spectrum access means the company has not yet determined pricing for its proposed mobile offering, noting that deployment itself remains uncertain.

The comments come as SpaceX reportedly aims for a valuation of around A$4.3 trillion in a potential public listing, with Musk holding between 40 and 45 per cent of the business. Such a move could make him the first individual to reach trillionaire status.

While SpaceX is currently a leading player in this segment, Goldman acknowledged that competition is on the horizon. Amazon's satellite initiative, now known as Project Kuiper, plans to deploy more than 3,200 satellites by 2028.

Goldman questioned the logic of allowing traditional carriers such as Telstra or Optus to acquire the spectrum through an auction, suggesting it could limit collaboration. He emphasised that SpaceX's preference is to partner broadly with industry participants rather than restrict access.

He also cautioned that any high cost incurred through bidding would ultimately be passed on to customers. This concern mirrors arguments made by Australian telecom providers, which have warned that the government's A$7.3 billion valuation for terrestrial spectrum licenses will lead to increased prices for users.

The debate over mobile coverage is distinct from Starlink's existing broadband service, which already serves roughly 200,000 Australian customers. Goldman described Australia as one of the company's most significant markets, citing strong demand and favourable geographic conditions for satellite connectivity.

He confirmed that discussions had taken place with the office of Communications Minister Anika Wells, though SpaceX did not receive the outcome it had hoped for. A spokesperson for Wells stated that the government views spectrum as a limited public asset and that the regulator is continuing to consult with industry to address the issue.

Robert Crofts, an executive at the communications authority, said the regulator is still determining the most effective approach to allocating spectrum for these emerging technologies. He noted that decisions would be guided by what delivers the greatest long-term benefit to the public.