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SpaceX takes aim at US wireless carriers with spectrum acquisition
The purchase gives Starlink Mobile low-band coverage that can reach indoors, while FCC approval is still needed before the new network can launch.
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.
SpaceX secures nationwide US frequencies for mobile communications from space. Telekom shares are clearly breaking in. Now hard times are threatening in the US market.