SpaceX announced Thursday that it has agreed to acquire a nationwide portfolio of low-band spectrum licenses from Grain Management, a private investment firm, in a move the company says will enable Starlink Mobile to become a major U.S. cellular carrier. SpaceX said the deal, which requires Federal Communications Commission approval, will "pave the way" for Starlink Mobile to compete directly with AT&T, Verizon, and T-Mobile.
The acquisition covers up to 14 megahertz of paired spectrum in the 800 MHz band, spanning the frequencies 817 to 824 MHz and 862 to 869 MHz. SpaceX said this low-frequency spectrum is critical because it can penetrate walls and buildings, addressing a technical limitation of its satellite-based service. The company noted that most existing mobile phones already support the 800 MHz band, meaning customers would not need new hardware to use the service. Neither SpaceX nor Grain Management disclosed the financial terms of the deal.
Grain Management acquired the spectrum portfolio from T-Mobile in August 2026 in a transaction valued at $2.9 billion in cash plus additional spectrum licenses, according to satellite industry sources. By purchasing the licenses from Grain, SpaceX is stepping into direct competition with T-Mobile, which currently partners with the company to provide Starlink Mobile service. T-Mobile removed SpaceX branding from its website after finalizing a joint satellite venture with AT&T and Verizon earlier this year.
SpaceX plans to combine the new 800 MHz low-band spectrum with its existing 2 gigahertz mid-band spectrum, acquired through its 2025 purchase of EchoStar, to create a hybrid satellite-and-terrestrial network. The company said the 2 GHz spectrum will provide high-bandwidth capacity, while the 800 MHz layer will ensure signal penetration through obstacles. SpaceX stated it will be "the first network operator to deploy both satellite and terrestrial spectrum," offering what it describes as unified coverage "indoors, outdoors, in cellular dead zones, and everywhere in between."
The spectrum acquisition comes after the FCC approved SpaceX's application to deploy 15,000 second-generation Starlink Mobile satellites optimized for 2 GHz service. According to SpaceX, this next-generation constellation will deliver over 100 times the bandwidth density of the current system, with deployment targeted for 2027 and upgraded service expected by year-end 2027. The FCC also issued SpaceX a waiver permitting it to offer wireless service through satellites without requiring a spectrum leasing agreement with a terrestrial carrier—a significant regulatory clearance for the company's independent carrier ambitions.
SpaceX's announcement triggered sharp declines in major telecom stocks. T-Mobile shares fell $18.58, or 11%, to $152.72 in morning trading on Friday, October 10. AT&T slipped $1.83, or 7.4%, to $22.76. Verizon experienced its worst single day since 2002, according to sources. Analysts noted, however, that near-term impact on the wireless industry may be limited, as SpaceX will need time to scale operations and complete FCC regulatory reviews. UBS analyst John Hodulik said the airwaves are compatible with existing handsets and the company sees few obstacles to regulatory approval, though buildout will take time.
SpaceX President and COO Gwynne Shotwell has been explicit about the company's competitive intentions. During an August earnings call, Shotwell said she expected Starlink Mobile to win customers from the major carriers, citing superior coverage in dead zones and improved resilience during disasters. She also described plans for low-cost cellular base stations that could integrate with existing Starlink customer dishes. Elon Musk characterized the spectrum acquisition as "the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America" in a social media post Thursday.
