SpaceX has agreed to buy a nationwide portfolio of low-band wireless spectrum, in a deal the company says completes the puzzle for turning its Starlink satellite service into a major mobile carrier in the United States. Investors in the incumbent carriers reacted instantly: shares of AT&T, Verizon and T-Mobile fell between roughly 6 and 8 percent in extended trading, while SpaceX stock rose.
The agreement covers up to 14 megahertz of paired spectrum in the 800 MHz band, acquired from the investment firm Grain Management. Low-band airwaves are prized because they travel long distances and penetrate walls, allowing service to reach phones indoors — the historic weak point of satellite-to-phone coverage. The price was not disclosed by the companies, though reports put it at about $8 billion in cash; the transaction still needs approval from the Federal Communications Commission.
SpaceX said that once approval arrives, it will combine its satellite-to-cell service with a terrestrial ground network that can connect devices everywhere. Its chief executive called the low-band spectrum the last critical piece needed to provide complete phone coverage in America. Starlink’s mobile service is expected to launch in 2027.
Analyst estimates for building out the full network run from $50 billion to $130 billion — a reminder that spectrum is only the entry ticket. Notably, while carrier stocks fell, cell-tower companies rose on the prospect of a new ground network needing their sites. The competitive threat, in other words, is being priced in before a single customer signs up.
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