Recent end-to-end trainable methods for scene text spotting, integrating detection and recognition, showed much progress. However, most of the current arbitrary-shape scene text spotters use region proposal networks (RPN) to produce proposals. RPN relies heavily on manually designed anchors and its proposals are represented with axis-aligned rectangles. The former presents difficulties in handling text instances of extreme aspect ratios or irregular shapes, and the latter often includes multiple neighboring instances into a single proposal, in cases of densely oriented text. To tackle these problems, we propose Mask TextSpotter v3, an end-to-end trainable scene text spotter that adopts a Segmentation Proposal Network (SPN) instead of an RPN. Our SPN is anchor-free and gives accurate representations of arbitrary-shape proposals. It is therefore superior to RPN in detecting text instances of extreme aspect ratios or irregular shapes. Furthermore, the accurate proposals produced by SPN allow masked RoI features to be used for decoupling neighboring text instances. As a result, our Mask TextSpotter v3 can handle text instances of extreme aspect ratios or irregular shapes, and its recognition accuracy wont be affected by nearby text or background noise. Specifically, we outperform state-of-the-art methods by 21.9 percent on the Rotated ICDAR 2013 dataset (rotation robustness), 5.9 percent on the Total-Text dataset (shape robustness), and achieve state-of-the-art performance on the MSRA-TD500 dataset (aspect ratio robustness). Code is available at: https://github.com/MhLiao/MaskTextSpotterV3