Nov 4 (Reuters) - Qualcomm has signed a multi-year agreement with SpaceX to supply radio equipment, baseband units and software for Starlink Mobile's planned nationwide terrestrial 5G network, as the Elon Musk-led space company seeks to challenge established US wireless carriers.
The equipment will be deployed across tens of thousands of macro cell sites in the country starting in 2027, Qualcomm said on Wednesday. While the company did not disclose the financial terms of the agreement, it said "this is our biggest 5G deal yet."
The deal will expand the presence of Qualcomm, best known for the chips that power smartphones, in the telecom infrastructure market, where it will compete with Marvell, Broadcom and Intel by supplying chips used in cell tower gear.
Qualcomm, which has been seeking to diversify beyond mobile devices, already helps power 5G networks in Japan and Vietnam.
SpaceX aims to establish a major nationwide US wireless carrier, taking on incumbents AT&T, Verizon and T-Mobile through a combination of satellite connectivity and terrestrial network.
Although questions remain about the feasibility of SpaceX's plans, given the substantial investment required to compete with the Big Three, the company has been moving ahead with spectrum acquisitions and exploring deals with cell tower firms to expand its terrestrial network.
Qualcomm said the equipment would provide a flexible foundation for a multi-band network, which can be deployed in stages. The initial rollout will focus on terrestrial 5G, with the architecture designed to accommodate developments in connectivity and network intelligence.
The company's radio technology is designed to improve coverage, capacity and spectral efficiency, or the amount of data that can be transmitted over a given amount of spectrum. Advanced beamforming technology will help direct wireless signals toward users, allowing SpaceX to make more efficient use of its licensed spectrum.
(Reporting by Harshita Mary Varghese in Bengaluru and Stephen Nellis in San Francisco; Editing by Shilpi Majumdar)
