1 hr ago
Telecom Shares Fall as SpaceX Expands Starlink Mobile Plans
SpaceX wants Starlink to connect more phones directly to its satellites.
It acquired low-band airwaves from Grain Management to help make that possible.
These signals can travel farther and pass through walls better than some other signals.
Starlink already has access to a different kind of spectrum that can carry lots of data.
SpaceX plans to combine the two kinds of spectrum with a ground-based network.
The company needs approval from the Federal Communications Commission before proceeding with its plans.
Most phones in use today support the acquired frequency, according to the report.
Investors reacted to the news by selling shares in AT&T, T-Mobile, and Verizon, which fell about 11% each on Friday.
AT&T shares fell 11% to $21.96, while T-Mobile and Verizon shares each declined 11% on Friday.
SpaceX acquired low-band spectrum from investment firm Grain Management to expand Starlink’s satellite-to-cellular service.
SpaceX says the spectrum can help signals travel farther and reach indoors through obstacles such as walls.
The spectrum complements Starlink Mobile’s existing global 2 GHz mid-band capacity and is supported by most mobile devices currently in use.
SpaceX plans to combine satellite-to-cell services with a terrestrial network, subject to Federal Communications Commission approval.
- Who
- SpaceX, AT&T, T-Mobile, Verizon, and Grain Management.
- What
- SpaceX acquired low-band spectrum to expand Starlink’s satellite-to-cellular service and pursue a mobile carrier business.
- Where
- The planned service is intended to provide phone coverage across the United States.
- When
- The announcement came Thursday; telecom shares fell during Friday’s trading session.
- Why
- The spectrum can help signals travel farther and penetrate obstacles, supporting connectivity indoors and across the country.
Key facts
- AT&T share price
- Shares fell 11% to $21.96 on Friday.
- T-Mobile and Verizon shares
- Each declined 11% during Friday’s trading session.
- Spectrum seller
- Grain Management.
- Existing Starlink spectrum
- Global 2 GHz mid-band spectrum, described as providing high-bandwidth capacity.
- New spectrum capability
- Low-band frequencies can travel longer distances and penetrate structures such as walls and tree cover.
- Regulatory approval
- SpaceX’s plans are subject to approval from the Federal Communications Commission.
- Financial terms
- SpaceX and Grain Management did not publicly disclose the agreement’s financial terms.
Sources
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