SpaceX buys spectrum as Starlink aims to become a major U.S. mobile carrier
SpaceX is acquiring nationwide 800 MHz spectrum from Grain Management to bring Starlink phone coverage indoors. Shares of T-Mobile, AT&T and Verizon tumbled.
Archive image · Photo: Official SpaceX Photos / Wikimedia Commons, CC0 (cropped and resized)
SpaceX has secured nationwide mobile spectrum in the 800 MHz band from investment firm Grain Management, according to a filing with the U.S. Federal Communications Commission. No price was officially disclosed; The Wall Street Journal reported SpaceX agreed to pay $8 billion in cash. The deal still requires FCC approval. The airwaves are meant for the planned Starlink Mobile service: low-band frequencies penetrate walls better, allowing phones to get a signal inside buildings. SpaceX said the deal closes one of the key remaining technical gaps in its cellular plans.
Elon Musk wrote that this was "the last critical piece of the spectrum puzzle" needed for SpaceX to provide complete phone coverage in America. SpaceX said the deal would let it become a major mobile carrier in the U.S. The FCC has already approved the launch of 15,000 Starlink Mobile satellites that connect directly to phones in the 2 GHz band, spectrum SpaceX acquired from EchoStar last year as part of a $17 billion deal. Most current devices already support the 800 MHz band.
The news hit established carriers hard. T-Mobile fell 11% and AT&T 7.4% in Friday morning trading, CBS News reported, while Verizon dropped more than 7% before the open. SpaceX shares rose. UBS analyst John Hodulik said he foresees no obstacles to regulatory approval but expects limited near-term impact on the industry, as SpaceX will need time to scale. The chief executives of AT&T and Verizon have argued that satellites can hardly compete with terrestrial networks, and in cities physics alone stands in the way.