SpaceX is all set to challenge America’s wireless carriers by agreeing to acquire a nationwide portfolio of low-band spectrum licences from digital infrastructure investor Grain Management. The deal strengthens Elon Musk’s ambitions to expand Starlink beyond satellite broadband and build a more direct presence in the US mobile market.
The acquisition would give Starlink Mobile access to additional wireless spectrum, bringing the company closer to competing with established operators such as AT&T, Verizon and T-Mobile. SpaceX plans to combine its satellite-to-phone network with the newly acquired spectrum to extend coverage and improve connectivity.
Reuters reported, “ The transaction could cost SpaceX about USD 8 billion, citing the Wall Street Journal. The companies did not disclose the financial terms. The acquisition covers Grain Management’s nationwide 800 MHz spectrum portfolio and remains subject to approval from the Federal Communications Commission (FCC).”
SpaceX believes the combination of terrestrial spectrum and satellite infrastructure could help Starlink Mobile become a major mobile carrier in the US.
Low-band spectrum can travel longer distances and penetrate walls and dense vegetation more effectively than higher-frequency signals. These properties make it valuable for extending coverage, particularly in rural areas and locations where conventional cellular networks struggle.
Most existing mobile handsets support the 800 MHz band, potentially allowing customers to use compatible devices without buying specialised satellite phones. Investors responded sharply to the announcement. Shares of T-Mobile, Verizon and AT&T fell by around 6% in extended trading.
The declines reflected concerns that SpaceX could emerge as a stronger competitor in a market dominated by established wireless operators. The acquisition could eventually increase pressure on carriers over coverage, pricing and customer retention.
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