SpaceX takes aim at US wireless carriers with spectrum acquisition
The deal gives Starlink Mobile low-band airwaves that can reach indoors, a key step as SpaceX builds a carrier to challenge the big three.
- On Thursday, SpaceX announced an agreement to acquire Grain Management's nationwide 800 MHz spectrum portfolio, positioning Elon Musk's satellite venture to challenge legacy wireless giants across the United States.
- Musk's strategy accelerates his ambitions to bypass traditional wireless infrastructure and deliver cellular connectivity directly from orbit, aiming to disrupt established carriers in the saturated domestic market.
- Low-Band frequencies are prized for penetrating dense structures like walls and trees, while Starlink Mobile's existing 2 GHz mid-band spectrum provides high-bandwidth capacity for the network.
- Shares of T-Mobile, Verizon, and AT&T fell more than 5 per cent in extended trading as investors feared increased competition from SpaceX could spark an aggressive price war.
- The Federal Communications Commission authorized SpaceX to launch 15,000 satellites for its Gen2 constellation this week, further expanding the company's orbital capabilities to support global connectivity.
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SpaceX rose on Friday shortly after the start of trading on Wall Street. Elon Musk's tech and aerospace company has signed an agreement to acquire a nationwide package of low-band spectrum licenses. According to the company, this paves the way for satellite internet service Starlink to grow into a major mobile provider in the United States.
SpaceX acquires critical 800 MHz spectrum to become a major US mobile carrier, combining Starlink and terrestrial network, while investments in satellites and Starship remain crucial
Maska agreed to buy radio frequencies in the United States for about $8 billion.
SpaceX Climbs 4% on Nationwide Low-Band Spectrum Deal for Starlink Mobile; Verizon and AT&T Drop 7%
SpaceX just bought something it cannot launch, and the move sent two of America's biggest wireless carriers into a sudden selloff. Here is what the spectrum purchase means for anyone holding carrier stock.
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