SpaceX has acquired a portfolio of low-band spectrum licenses to transform its Starlink Mobile service into a major U.S. carrier. The company plans to combine its next-generation satellite constellation with terrestrial infrastructure to compete directly with Verizon, AT&T, and T-Mobile, pending final regulatory approval from the Federal Communications Commission.
Expansion Into Low-Band Spectrum
SpaceX is positioning itself to challenge the traditional wireless industry by securing up to 14 megahertz of paired spectrum in the 800 MHz band. The company acquired these radio waves from Grain Management, a private investment firm that previously purchased the assets from T-Mobile. This acquisition is intended to solve a persistent technical hurdle for satellite-to-phone connectivity: signal penetration.
By utilizing this low-band frequency, SpaceX expects to offer service that reaches customers inside buildings and through walls, areas where current satellite-based mobile offerings often struggle. The company noted that most existing mobile devices already support this underused band,
which could lower the barrier to entry for potential users.
SpaceX Blends Terrestrial Towers with Gen2 Satellites
The company’s roadmap involves more than just orbital coverage. SpaceX is developing an architecture that blends its advanced terrestrial deployment with its Gen2 satellite constellation. Earlier this week, the FCC authorized the launch of 15,000 version 2 satellites, which are designed to provide significantly higher bandwidth than the current generation.
“With this new low-band spectrum and our Gen2 constellation, Starlink Mobile can now become the first network operator to deploy both satellite and terrestrial spectrum. One network that provides Americans with a reliable service indoors, outdoors, in cellular dead zones, and everywhere in between.”
SpaceX, in a company announcement
Analysts Doubt Spectrum Coverage in Urban Areas
While SpaceX is optimistic, the transition to a major carrier faces significant skepticism from telecom analysts. Satellite industry expert Tim Farrar suggests that the limited amount of spectrum may not be enough to match the coverage of established carriers in dense urban environments without a massive rollout of ground-based infrastructure.
https://x.com/elonmusk/status/2108296168094544099
“I think this adds fuel to the fire in the battle between SpaceX and the mobile operators, but it’s still a very limited amount of spectrum and to get reliable building penetration in urban areas SpaceX would have to deploy an extensive network of towers on the ground which would be expensive.”
Tim Farrar, satellite industry analyst
Furthermore, Farrar points out that the current satellite hardware may not be fully compatible with the new frequencies. They [SpaceX] will also need modified satellites if they hope to deploy this spectrum on their next-generation satellite constellation as an interim measure because the frequencies are much lower than the satellites were originally designed to use,
he noted.
FCC Approval and T-Mobile Partnership Remain Uncertain
The deal remains subject to final Federal Communications Commission approval. The company is still integrating the $20 billion worth of spectrum it agreed to acquire from EchoStar last year, with that deal not expected to close until November 2027.
The move also complicates SpaceX’s existing relationship with T-Mobile. Currently, T-Mobile serves as the exclusive provider for Starlink Mobile, branded as T-Satellite. However, as SpaceX moves to compete directly with its partner, it remains unclear whether T-Mobile will continue the collaboration or pursue other satellite providers. For now, the timeline for a full retail launch of Starlink Mobile as a standalone major carrier remains undefined as the company works to incorporate necessary chipsets and regulatory clearances.