SpaceX has agreed to purchase 800 MHz spectrum licenses to bolster Starlink Mobile's ability to provide cellular coverage inside buildings and compete as a major U.S. carrier.

SpaceX has entered an agreement to acquire a nationwide low-band spectrum license portfolio from investment firm Grain Management. This acquisition, which requires FCC approval, aims to provide Starlink Mobile with the terrestrial infrastructure needed to penetrate buildings and offer reliable cellular service. Simultaneously, the FCC has authorized SpaceX to launch 15,000 additional satellites optimized for 2 GHz spectrum to support global direct-to-device connectivity.

Hybrid Network Strategy

The acquisition involves up to 14 megahertz of paired spectrum in the 800 MHz band, which SpaceX notes is already supported by most existing mobile devices. By combining this low-band terrestrial spectrum with its 2 GHz satellite constellation, the company intends to create a hybrid network that provides coverage both indoors and in remote areas where traditional cell towers are unavailable. SpaceX plans to deploy its own terrestrial equipment, including antennas on towers and rooftops, to facilitate this service.

Market and Regulatory Developments

The deal follows SpaceX's previous acquisition of 50 MHz of S-band spectrum from EchoStar. Following the announcement of the new spectrum purchase, shares for major telecom companies declined, with T-Mobile falling 11% and AT&T dropping 7.4% in Friday morning trading. While UBS analyst John Hodulik noted that the spectrum is compatible with existing handsets, he suggested that scaling the wireless service will take time and that the immediate impact on the industry remains limited.