SpaceX Buys Spectrum to Make Starlink a U.S. Phone Carrier

SpaceX is taking a big step toward becoming a mobile carrier in the U.S. In an update on its website, SpaceX announced an agreement to acquire a nationwide portfolio of up to 14 MHz of paired low-band spectrum in the 800 MHz range. SpaceX says the deal will “pave the way for Starlink Mobile to become a major mobile carrier in the U.S.”

The licenses come from Grain Management, a digital infrastructure investment firm, which acquired the 800 MHz portfolio from T-Mobile in August. Financial terms for the deal weren’t disclosed.

Why Low-Band Spectrum Matters for Starlink Mobile

Until now, Starlink has offered satellite connectivity to smartphones through existing carriers like T-Mobile. With Starlink Mobile, SpaceX would become a carrier itself, offering service directly to phones across the U.S. and eventually around the world.

Starlink Mobile already has global 2 GHz mid-band spectrum for high-bandwidth capacity, thanks to SpaceX’s earlier spectrum agreements with EchoStar. The new 800 MHz spectrum adds a coverage layer, letting the signal pass through walls and other obstacles so phones stay connected inside buildings. As SpaceX points out, “most existing mobile devices already support this underused band.”

Once the FCC gives final approval for the deal, SpaceX plans to combine its satellite-to-mobile constellation with an advanced ground network. SpaceX says that would make Starlink Mobile the first network operator to deploy both satellite and terrestrial spectrum, covering indoors, outdoors, and cellular dead zones in one network.

FCC Approves 15,000 Next-Gen Satellites

SpaceX also got a regulatory win this week. The FCC approved Starlink Mobile’s Gen 2 constellation, authorizing SpaceX to launch 15,000 satellites optimized for 2 GHz spectrum worldwide. SpaceX says the second-generation satellites will deliver more than 100 times the bandwidth of the current hardware, bringing high-speed service to unmodified phones anywhere. The FCC also granted a conditional U.S. waiver of satellite power limits and approved the backhaul bands Starlink’s V3 broadband satellites use.

A New Rival for Verizon, AT&T, and T-Mobile

Wall Street took notice. Shares of T-Mobile, Verizon, and AT&T each fell more than 5% in extended trading after the announcement.

Starlink was SpaceX’s largest revenue source when it went public earlier this summer, and its profitability has only grown since. A carrier business could add a new revenue stream on top of that. The spectrum deal still needs FCC approval, but SpaceX now has the satellites, spectrum, and regulatory momentum to start building Starlink Mobile into a real alternative to the big three carriers.