SpaceX to buy key spectrum that could help Starlink Mobile become major US cell carrier

SpaceX aims to challenge established mobile networks in the United States by acquiring a nationwide low-band spectrum portfolio of up to 14 megahertz in the 800 MHz band. This spectrum will enable Starlink Mobile to become a significant cellular carrier in the US. The acquisition comes from telecom investment firm Grain Management, who purchased the licenses from T-Mobile.

The transaction awaits FCC approval and other customary closing conditions. SpaceX intends to deploy its own terrestrial infrastructure, including antennas on towers, rooftops, and other structures, to provide reliable signal coverage. Financial details of the deal remain undisclosed, but SpaceX plans to offer Starlink Mobile as a service that can reach subscribers indoors, outdoors, and in cellular dead zones without requiring device upgrades.

This hybrid satellite-terrestrial network, bolstered by the 2 GHz spectrum for high-speed coverage and the 800 MHz band for indoor penetration, could make Starlink Mobile the first network operator providing reliable service in various scenarios. The news has caused a decline in the shares of incumbent wireless operators, with Verizon, AT&T, and T-Mobile US shares experiencing declines of nearly 6 percent each.