SpaceX targets US carriers with low-band spectrum

Elon Musk-controlled SpaceX struck a deal to buy a nationwide low-band spectrum portfolio from Grain Management, ratcheting up its challenge to compete with US carriers for mobile customers.

The transaction for all of Grain Management’s nationwide portfolio of up to 14MHz of paired spectrum in the 800MHz band is subject to regulatory approval by the Federal Communications Commission (FCC). Financial terms are not available.

“This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” Musk said on X above a post which questioned the company’s direct-to-device (D2D) strategy.

SpaceX stated Starlink Mobile’s global 2GHz mid-band spectrum will deliver high-capacity coverage in the US, while the newly acquired low-band frequencies will improve signal reach through obstacles including walls and extend service to devices indoors. The company added most existing mobile devices already support the underused band.

SpaceX plans to pair its satellites with ground-based femtocells to provide 5G mobile coverage, a plan many executives in the industry consider far-fetched.

The company stated the low-band spectrum would address a key remaining technical gap and help pave the way for Starlink Mobile to become a major US mobile carrier.

SpaceX stated once it garners approval it “will deploy a flexible architecture combining our satellite-to-mobile constellation in space with an advanced terrestrial deployment that can seamlessly connect devices everywhere”.

The move follows through on its plan to roll out a D2D service to compete against T-Mobile US, Verizon and AT&T.

On 6 October, SpaceX announced a regulatory win after it secured FCC approval to launch 15,000 next-gen satellites for D2D.

In August, T-Mobile US completed the sale of its nationwide 800MHz spectrum portfolio to Grain Management in exchange for $2.9 billion in cash and all of the latter’s 600MHz spectrum licences more than a year after agreeing a deal in principle.

Grain Management previously outlined a plant to work with energy and infrastructure specialist Black & Veatch to market the spectrum to utilities, critical infrastructure operators and rural and regional carriers.