SpaceX buys spectrum to challenge carriers

SpaceX announced Thursday it will acquire a nationwide spectrum portfolio from Grain Management to expand Starlink deeper into U.S. mobile services. The deal requires Federal Communications Commission approval.

The spectrum fills a technical gap

SpaceX is acquiring up to fourteen megahertz of paired spectrum in the eight hundred megahertz band. The company said this prime low-band spectrum addresses a key technical gap for Starlink Mobile.

“This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US.”

Musk calls it a very big deal

SpaceX CEO Elon Musk posted on X that the spectrum acquisition is a very big deal. The announcement comes as SpaceX pushes to compete directly with established wireless carriers.

“very big deal”

Wireless stocks fall on the news

Shares of AT&T, Verizon and T-Mobile tumbled in extended trading after SpaceX announced the spectrum deal. The three carriers had just formed a joint venture focused on satellite and direct-to-device services.

Starlink is SpaceX's only profit engine

Starlink had twelve million subscribers as of June thirty and generated one point sixty-six billion dollars in operating income on four point twenty-nine billion dollars in revenue. The service operates in two hundred five countries.

FCC votes on more satellite spectrum

The FCC said it would vote on a proposal to auction twenty-five megahertz of prime spectrum for direct-to-device satellite services. It will also vote October twenty-ninth on making an additional four hundred eighty-two megahertz available.

SpaceX needs ground towers to compete

Industry expert Tim Farrar said SpaceX would need to deploy towers on the ground to achieve reliable building penetration in urban areas.

“This adds fuel to the fire in the battle between SpaceX and the mobile operators.”