SpaceX takes aim at US wireless carriers with spectrum acquisition

Low-band frequencies can travel long distances and penetrate dense structures such ​as walls and tree cover, addressing a major technical hurdle previously faced by satellite-based mobile networks. By ⁠pairing nationwide low-band airwaves with high-frequency space capacity, SpaceX is positioning Starlink Mobile to bypass conventional cell towers entirely and ​challenge the wireless oligopoly on both broad coverage and in-building reliability.

The deal raises the stakes for legacy carriers, transforming satellite ​direct-to-device connectivity from a supplementary safety feature for remote dead zones into a full-scale commercial rival capable of unseating terrestrial cellular networks. Shares of T-Mobile US (TMUS.O), opens new tab, Verizon (VZ.N), opens new tab and AT&T (T.N), opens new tab fell around 6% in extended trading.

The three carriers formed a satellite-focused joint venture in May that some analysts ​believe is intended to respond to the threat from SpaceX."The incumbent wireless carriers have been vocal in expressing skepticism that SpaceX's network ​will be able to match the quality of their networks," William Blair analysts said.

"We expect SpaceX to offer a very compelling Starlink broadband ‌and Starlink ⁠Mobile bundle. The company may also include Grok in the package," referring to the AI chatbot developed by Musk's xAI.The transaction, which involves acquiring 100% of Grain Management's nationwide 800 MHz spectrum portfolio, remains subject to Federal Communications Commission approval.

Grain acquired the airwaves from T-Mobile earlier this year. "We are going to see more investment, more opportunities for a range of providers, and ​America leading the world in ​next-gen technologies — to the ⁠benefit of consumers all across the country," FCC Chair Brendan Carr said in response to the deal between SpaceX and Grain.

Grain CEO David Grain said the deal has "the potential to change where ​and how Americans connect. "Most existing mobile handsets support the 800 MHz frequency band, eliminating the need ​for consumers to ⁠purchase proprietary satellite phones.

Verizon spokesman Rich Young noted there were still hurdles after SpaceX's spectrum purchase. "This company can have tons of spectrum available, but if they do not have the network to use it, it doesn’t matter.

It’s just empty airwaves," Young said. The ⁠FCC also ​approved Starlink Mobile's Gen2 constellation application this week, authorizing SpaceX to launch ​15,000 satellites that are optimized for 2 GHz spectrum globally. The new orbital fleet will operate in very low Earth orbit, delivering expanded bandwidth and low-latency ​connections to standard handsets.