SpaceX has agreed to acquire nationwide 800 MHz low-band spectrum for Starlink Mobile, a deal first reported by Cnet. SpaceX says the low-band frequencies are meant to improve signal propagation through walls, dense foliage and hilly terrain, targeting obstacles that have long limited satellite-to-phone connectivity indoors; FCC approval remains necessary.
SpaceX would acquire investment firm Grain Management’s nationwide 800 MHz low-band spectrum portfolio for an estimated $8 billion. The transaction would provide up to 14 megahertz of paired airwaves for two-way data transmission between satellites and mobile devices; the FCC has not set a decision timeline.
Low-band airwaves have the physical properties needed to pass through concrete walls, dense foliage and urban infrastructure, unlike the high-frequency beams used currently. In a post on X, Musk called the spectrum the “last critical piece” needed for SpaceX to provide complete phone coverage in America.
The FCC also gave SpaceX the go-ahead this week to launch 15,000 satellites. Those direct-to-device satellites can transmit phone calls, texts and other data from space to devices on the ground; SpaceX said they can deliver more than 100 times the bandwidth of its current satellites.
The proposed network would combine satellite beams with ground infrastructure. Tim Farrar, an analyst with research firm Telecom, Media and Finance Associates, told CNBC the spectrum is limited and would not, by itself, be enough to compete strongly with AT&T, T-Mobile and Verizon Wireless; reliable building penetration in urban areas would require SpaceX to deploy ground towers.
The spectrum aims to improve propagation; Farrar’s caveat is that reliable urban building penetration would still require towers. Last month, T-Mobile CFO Peter Osvaldik said Starlink’s satellite-to-cell service was not a competitive threat at the Global TMT Conference. SpaceX plans to accelerate deployment of the new system next year.