SpaceX Acquires 800 MHz Spectrum to Challenge Wireless Carriers
SpaceX agreed to buy Grain Management's nationwide 800 MHz spectrum to enable direct-to-smartphone satellite connectivity, causing shares of major U.S. wireless carriers to drop.
Space Exploration Technologies Corp. reached an agreement Thursday to acquire the entire nationwide 800 MHz low-band spectrum portfolio from private-equity firm Grain Management. The acquisition is designed to allow Starlink Mobile to provide cellular connectivity directly from orbit to smartphones, specifically addressing technical challenges related to signal penetration through walls and dense structures.
This low-band spectrum complements the company's existing 2 GHz mid-band spectrum and follows a recently approved application to launch 15,000 Gen2 satellites. The transaction remains subject to approval by the Federal Communications Commission.
The announcement triggered an immediate market reaction in the United States wireless sector. Shares of T-Mobile US, Verizon, and AT&T each fell more than 5 per cent in extended trading as investors anticipated increased competition and a potential price war resulting from the ability to bypass traditional ground-based wireless infrastructure.
