SpaceX Acquires 800 MHz Spectrum to Transform Starlink into a Nationwide Mobile Operator in the US

Image: Illustrative image · Official SpaceX Photos · CC0 · Source

SpaceX has purchased 800 MHz radio frequencies to expand Starlink's satellite service and create an integrated mobile network covering nearly the entire United States, aiming to combine satellite and terrestrial cellular connectivity.

SpaceX, the aerospace company led by Elon Musk, has acquired radio spectrum in the 800 MHz band with the intention to expand its Starlink satellite internet service and establish a mobile network with coverage across almost the entire United States. This strategic move aims to merge satellite communication with traditional cellular networks to provide connectivity even in remote areas where building conventional cell towers is cost-prohibitive.

Elon Musk described this spectrum acquisition as one of the final crucial steps toward achieving near-ubiquitous mobile coverage in the country. The 800 MHz frequency band is known for its superior signal penetration through walls and obstacles compared to higher frequency bands, making it valuable for mobile communication. Additionally, these frequencies are compatible with many modern smartphones, which suggests that users could connect to the satellite network without needing special equipment in the future.

SpaceX obtained these licenses from Grain Management LLC, an investment company, following a spectrum swap between Grain Management and the mobile operator T-Mobile in August. The licenses reportedly cover almost the entire US population. With this acquisition, SpaceX plans to integrate its Starlink Direct-to-Cell satellite system with existing terrestrial mobile networks. Smartphones would be able to connect either to ground-based cellular towers or directly to low Earth orbit satellites, thereby addressing service gaps in areas with poor or no cellular coverage.

However, before deploying the full network, SpaceX still requires approval from the US Federal Communications Commission (FCC). The company has not yet announced the timeline for the service launch, subscription pricing, or specific customer terms.

The announcement of the deal impacted US telecom stocks, with shares of AT&T down 7.3%, T-Mobile US down 6.6%, and Verizon Communications also down 6.6% in after-hours trading as investors reacted to the prospect of a new significant competitor entering the mobile communication market.