Elon Musk's Space Exploration Technologies Corp. (SPCX) has a message for the Federal Communications Commission: don't let the incumbents write the rules. In a letter dated October 28, SpaceX went after legacy telecom operators like T-Mobile US Inc. (TMUS) over the agency's proposed spectrum rule changes, and the language was not exactly diplomatic.

SpaceX Slams 'Misplaced Desire'

SpaceX said the FCC should reject the "technically unsound recommendations from the Aerospace and Flight Test Radio Coordinating Council (AFTRCC) and T-Mobile," which want power limits on satellite transmissions. Their argument? That satellite signals could interfere with flight telemetry tracking systems.

SpaceX isn't buying it. "Unfortunately, the misplaced desire to harm a competitor has led many incumbents to oppose modernized rules that would bring direct-to-cell service to underserved border communities," the company said in the letter.

And it didn't stop there. "AFTRCC is now purely a lobbying organization whose mission is to protect legacy companies and their comments should not be viewed as independent or objective," SpaceX alleged. That's about as subtle as a rocket launch.

Base Station Protection

SpaceX also took aim at T-Mobile's base station protection demands, which the commercial space flight giant says would create 250-mile-wide buffer zones around cell towers. The result, according to SpaceX, would be "disenfranchising millions from direct-to-cell service in the countries where the limit is applied."

SpaceX urged the FCC to reject T-Mobile's base station protection plea entirely. The company argued that cell tower antennas are directional and therefore "inherently more resilient to interference" from satellite signals and transmissions. "The Commission should not adopt T-Mobile's proposed limits for base-station protection," SpaceX said in the letter.

The timing here is interesting. Earlier this month, Musk predicted the telecom industry was about to experience an "earthquake" after SpaceX acquired 800 MHz spectrum. That's the kind of comment that tends to get competitors' attention, and the FCC filing suggests the fight is just getting started.

Verizon CEO on SpaceX

The letter lands as Verizon Communications Inc. (VZ) CEO Dan Schulman, during the telecom operator's recent Q3 2026 earnings call, said SpaceX would have to spend $500 billion to compete with traditional cellular service providers. That's a big number, even by Musk standards.

Other telecom executives have also been skeptical of SpaceX's cellular service, which would rely on femtocells, small cellular base stations that improve connectivity. AT&T Inc. (T) CEO John Stankey dismissed Starlink's mobile service talks, saying the technology had to overcome regulatory hurdles as well as technological limitations.

T-Mobile CFO Pete Osvaldik also remained skeptical about Starlink's threat to telecom operators. "You can have a million satellites up there with all the spectrum in the world; you can't break the fundamental laws of physics," he said.

So where does that leave things? SpaceX is asking the FCC to modernize the rules and open the door to direct-to-cell service in border communities. T-Mobile and AFTRCC want tighter power limits and buffer zones. And the incumbents are all publicly betting that physics, regulation, and a $500 billion price tag will keep SpaceX from becoming a real wireless carrier. The FCC now has to decide whose version of the story it believes.