SpaceX recently announced an agreement to acquire a national spectrum portfolio in the United States. This move aims to bring the Starlink satellite internet service closer to the telecommunications market, placing the company in greater competition with major carriers such as AT&T, Verizon, and T-Mobile.
Following the announcement, the shares of the three carriers dropped during trading after the market closed. The deal involves purchasing the spectrum portfolio belonging to Grain Management, a company specializing in digital infrastructure. The completion of this operation is subject to approval from the U.S. Federal Communications Commission (FCC).
According to SpaceX, this portfolio covers licenses for up to 14 MHz of paired spectrum in the 800 MHz band. The company considers this frequency crucial for the development of Starlink Mobile, as low-frequency spectrum resolves one of the main remaining technical deficiencies for the service to establish itself as a major mobile carrier in the US.
Elon Musk, CEO of SpaceX, described the deal as a 'very big deal' in a post on the X platform.
Telecommunications Sector Context
This advancement by SpaceX occurs during a period of transformation in the American telecommunications sector. The previous week, T-Mobile, AT&T, and Verizon established a joint venture focused on expanding coverage in currently underserved regions, utilizing both satellite and direct device communication technologies. Starlink did not participate in this initiative.
Additionally, T-Mobile had already removed mentions of Starlink from its promotional materials regarding the T-Satellite service. The new agreement signals SpaceX's intention to increase Starlink's presence and compete directly with major American carriers, rather than relying solely on collaborations with them.
Tim Farrar, a consultant at TMF Associates, commented that the transaction intensifies the rivalry between SpaceX and mobile carriers, stating: 'This further increases the competition between SpaceX and mobile carriers.' However, Farrar noted that the amount of acquired spectrum is still limited. He pointed out that, to ensure stable coverage inside buildings in urban areas, SpaceX would need to install ground antennas.
Despite this limitation, the acquisition represents another significant step for SpaceX to expand the reach of Starlink Mobile and compete directly in the United States mobile telephony market.