Key facts
- SpaceX will buy up to 14 megahertz of spectrum in the 800 MHz band from Grain Management.
- Grain Management had bought the spectrum rights from T-Mobile, which was required to sell them due to a merger condition.
- The 800 MHz spectrum licenses cover approximately 100 percent of the US population.
- SpaceX is also buying 65 MHz of nationwide mid-band spectrum licenses from EchoStar for $17 billion.
- Stock prices for AT&T, T-Mobile, Verizon, and AST SpaceMobile fell in response to SpaceX's spectrum deal.
- SpaceX plans to launch up to 15,000 next-generation satellites for a more powerful mobile service.
SpaceX has struck a deal to acquire nationwide low-band spectrum licenses in the 800 MHz band from investment firm Grain Management, a move intended to bolster its Starlink mobile service. This acquisition aims to enhance indoor coverage and signal penetration, enabling Starlink to potentially compete with established US mobile carriers like AT&T, T-Mobile, and Verizon.
The 800 MHz spectrum licenses, which cover approximately 100 percent of the US population, will complement Starlink's existing satellite-based cellular service. SpaceX stated that this prime low-band spectrum addresses a key technical gap for its terrestrial mobile network. The company also recently received approval from the FCC to launch 15,000 satellites for an upgraded, more powerful version of its mobile service.
SpaceX is also in the process of purchasing 65 MHz of nationwide mid-band spectrum licenses from EchoStar for $17 billion, a deal approved by the FCC in May 2026. The low-band spectrum is crucial for providing a coverage layer that penetrates obstacles like walls, ensuring service to devices even indoors, and is compatible with most existing mobile devices.
While the deal is expected to be approved by the FCC, it could face opposition from smaller carriers concerned about spectrum aggregation. The stock prices of AT&T, T-Mobile, and Verizon saw a sharp decline following the announcement of SpaceX's spectrum deal. SpaceX's US mobile partner is T-Mobile, from whom it had previously leased 10 MHz of mid-band spectrum. However, with this new deal, SpaceX is acquiring former T-Mobile spectrum to directly compete with the carrier.
Elon Musk, CEO of SpaceX, indicated that the company plans to deploy numerous small base stations instead of large, costly cellular towers, utilizing Starlink broadband antennas on buildings to provide connectivity. The FCC approved the sale of the 800 MHz licenses, noting they have been underutilized. Meanwhile, AT&T, T-Mobile, and Verizon have formed a joint venture to pool spectrum for satellite-based dead zone coverage, aiming to counter SpaceX's moves.