🤖 TechnologyHotCovered by 3 outlets

SpaceX to acquire 800 MHz spectrum to launch US mobile carrier service

Oct 9, 6:21 AM2 min read

Drafted by AI from the sources below, fact-checked by the Ajako Taja Editorial Team · How we use AI

AI Summary

SpaceX is set to challenge major telecom giants after moving to acquire 800 MHz spectrum licenses, aiming to build a hybrid satellite-terrestrial mobile network.

SpaceX has reached an agreement to purchase a portfolio of low-band spectrum from Grain Management, a move the company says will allow Starlink Mobile to become a major US carrier.

The deal involves up to 14 megahertz of paired spectrum in the 800 MHz band. SpaceX stated that this low-band spectrum is necessary to allow mobile signals to penetrate walls and buildings. According to The Verge, the company plans to deploy a new architecture that combines its satellite-to-mobile constellation with a terrestrial mobile network to compete directly with AT&T, Verizon, and T-Mobile.

Following the announcement, shares of AT&T, Verizon, and T-Mobile fell in extended trading, while cell-tower stocks saw gains. International reported that the move comes after the three major carriers recently formed a joint venture for satellite and direct-to-device services that excluded Starlink. SpaceX CEO Elon Musk described the spectrum acquisition on X as a "very big deal."

The Federal Communications Commission must still approve the license transfer. While SpaceX claims this will enable reliable service indoors and in dead zones, industry expert Tim Farrar told International that the company would still need to deploy ground-based towers for reliable urban penetration. The FCC is also scheduled to vote on October 29 on proposals to make more spectrum available for supplemental coverage from space.

SpaceX has already received FCC approval to deploy 15,000 V2 Starlink Mobile satellites, which the company claims will offer 100 times the bandwidth of current generations. This acquisition follows a previous purchase of 2GHz spectrum from EchoStar as part of SpaceX's push to deliver its own telecommunications services independently of established carriers.

Background

SpaceX went public in June in a record IPO and is now valued at over $2 trillion. As of June 30, the Starlink segment reported 12 million subscribers across 205 countries and generated $1.66 billion in operating income for the second quarter.