SpaceX Buys Spectrum to Turn Starlink Mobile Into a Carrier

SpaceX disclosed two significant moves on this week that aim to position it as a major U.S. telecommunications carrier, challenging industry giants AT&T, Verizon, and T-Mobile. Acquiring a spectrum license portfolio within the 800MHz low-band range, SpaceX claims this acquisition will bridge one of the remaining technical gaps, enabling it to contend with other carriers.

Most modern smartphones are already compatible with the 800MHz spectrum that SpaceX is acquiring. The Federal Communications Commission (FCC) has approved SpaceX's Starlink Mobile Gen2 constellation application, allowing the company to launch 15,000 satellites optimized for 2GHz spectrum globally. These Starlink Mobile satellites are expected to deliver over 100 times the bandwidth of the current generation.

Additionally, the FCC has granted SpaceX a waiver that permits the company to provide wireless services through its satellites without a spectrum leasing agreement with a terrestrial carrier. Upon finalizing the acquisition of the new spectrum, SpaceX intends to integrate its satellites with advanced terrestrial deployment to ensure connectivity everywhere.

The 2GHz mid-band spectrum is projected to provide high-bandwidth capacity in the U.S., while the low-band spectrum will enable Starlink's signals to penetrate obstacles such as walls. SpaceX plans to deploy the first satellite-terrestrial spectrum network, promising a unified service that functions reliably indoors, outdoors, in cellular dead zones, and everywhere in between.

SpaceX currently supports T-Mobile's satellite feature, but T-Mobile recently removed SpaceX branding from its website following the completion of a joint satellite venture with AT&T and Verizon. SpaceX's Starlink Mobile announcement led to a decline in shares of AT&T, Verizon, and T-Mobile, with Verizon experiencing its most significant one-day drop since 2002.