Business · Companies · 2 days ago
SpaceX agrees to buy US mobile spectrum for about $8 billion
Spectrum is the radio space mobile networks use to connect phones.
SpaceX wants to combine these low-frequency airwaves with Starlink satellites to expand mobile coverage and compete with US carriers.
The deal still needs approval, and SpaceX would need a network to use the spectrum.
It is not yet clear what service or prices customers might get.
SpaceX has agreed to buy Grain Management’s nationwide 800MHz spectrum portfolio for about US$8 billion, according to reports cited by the articles.
The deal would give SpaceX low-band airwaves that can travel long distances and penetrate buildings.
The purchase requires approval from the US Federal Communications Commission.
SpaceX says it aims to combine spectrum with Starlink to expand mobile connectivity, but it still needs infrastructure to use the frequencies.
The deal could make Starlink Mobile a stronger competitor to established US carriers, though the companies did not disclose financial terms.
- Who
- SpaceX agreed to buy the spectrum from private equity firm Grain Management.
- What
- The deal covers Grain’s nationwide 800MHz spectrum portfolio and is reported to be worth about US$8 billion.
- When
- SpaceX struck the deal on Thursday, according to TechCentral.
- Where
- The spectrum portfolio covers the United States.
- Why
- SpaceX aims to expand mobile connectivity by combining low-band spectrum with its Starlink network.
SpaceX and its supporters
Established wireless carriers and sceptics
Network potential
SpaceX and its supporters
SpaceX aims to combine spectrum with Starlink to expand mobile coverage and compete with major carriers.
Established wireless carriers and sceptics
Verizon said spectrum alone is insufficient without a network to use it, and carrier sceptics questioned whether SpaceX could match existing network quality.
Market impact
SpaceX and its supporters
FCC chairman Brendan Carr said the deal could bring more investment and opportunities for providers.
Established wireless carriers and sceptics
The deal raises the stakes for existing carriers, whose shares fell about 6% in extended trading.
This company can have tons of spectrum available, but if they do not have the network to use it, it doesn’t matter. It’s just empty airwaves.
We are going to see more investment, more opportunities for a range of providers, and America leading the world in next-gen technologies – to the benefit of consumers all across the country,
the potential to change where and how Americans connect
a true mobile service
AT&T, Verizon and T-Mobile agreed in principle to form a satellite-focused joint venture.
SpaceX president Gwynne Shotwell said the company would build ground infrastructure to make Starlink a true mobile service.
The FCC approved SpaceX’s application for a second-generation Starlink Mobile constellation of up to 15,000 satellites.
SpaceX struck a deal to acquire Grain Management’s nationwide 800MHz spectrum portfolio.
- Reported deal value
- About US$8 billion
- Spectrum band
- 800MHz
- Spectrum seller
- Grain Management
- FCC satellite authorisation
- Up to 15,000 satellites
- Earlier EchoStar spectrum deals
- Combined US$19.6 billion
Sources
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