Elon Musk’s reach spans multiple global sectors, placing the billionaire (sometimes a billionaire, depending on the stock market) at the center of the electric vehicle industry, space exploration, artificial intelligence and national politics. He is already involved in telecommunications through his company SpaceX and its global satellite internet service, Starlink, but recent developments could soon expand its influence with satellite-to-cellular coverage.
SpaceX announced Thursday that it has agreed to acquire 800 MHz low-band spectrum nationwide to help make Starlink Mobile a major U.S. cellular carrier. By acquiring these low-band airwaves, SpaceX said it aims to improve signal propagation, allowing satellite coverage to bypass physical obstacles such as building walls, dense foliage and hilly terrain.
“This is the final critical piece of the spectrum puzzle that SpaceX needs to provide comprehensive phone coverage in America,” Musk said on X.
A SpaceX representative did not immediately respond to a request for comment.
Under terms of Thursday’s announcement, SpaceX will acquire the national 800 MHz low-band spectrum portfolio from investment firm Grain Management for an estimated $8 billion. The deal gives the satellite operator up to 14 megahertz of coupled waves, enabling two-way data transmission between satellites and mobile devices. The acquisition remains subject to approval by the Federal Communications Commission, which has not yet set a deadline for a decision.
Acquiring low-band spectrum is crucial to Starlink Mobile’s cellular ambitions. Unlike the high-frequency beams currently in use, these low-band waves have the physical properties required to pierce concrete walls, dense foliage and urban infrastructure, effectively solving the indoor dead zone problem that has long limited satellite-to-phone connectivity.
Also this week, the FCC gave SpaceX the green light to launch 15,000 satellites, which the company says can provide more than 100 times the bandwidth of its current satellites. These satellites are directly connected to devices, meaning they can transmit phone calls, text messages and other data directly from space to devices on the ground. SpaceX said the new satellites will bring “high-speed service directly to unmodified devices anywhere in the world.”
What does this mean for consumers?
For people looking for an alternative to the big three wireless carriers AT&T, T-Mobile, and Verizon Wireless, Starlink Mobile could potentially be an option.
If and when the FCC approves the deal with Grain Management, Starlink Mobile will combine its newly acquired low-band spectrum with a massive, freshly approved fleet of 15,000 next-generation satellites. This hybrid network will use a mix of satellite beams and ground infrastructure to penetrate walls and eliminate indoor dead zones across the United States, while leveraging its high-bandwidth frequencies to deliver high-speed data directly to ordinary mobile devices. SpaceX plans to accelerate deployment of the new system next year.
But according to analyst Tim Farrar, an industry expert at research firm Telecom, Media and Finance Associates, simply acquiring low-spectrum bandwidth in this week’s deal won’t be enough to compete strongly with AT&T, T-Mobile and Verizon Wireless, which use thousands of cell towers.
“This is still a very limited amount of spectrum, and to get reliable building penetration in urban areas, SpaceX would need to deploy towers on the ground,” Farrar told CNBC.
Last month, T-Mobile Chief Financial Officer Peter Osvaldik dismissed the idea that Starlink’s satellite-to-cell service could adequately compete with traditional wireless coverage offered by major carriers. “It’s not a competitive threat,” Osvaldik said at the TMT Global Conference.
“By the time the signal gets to your phone, you have no signal strength left,” he added. “You can have a million satellites up there with all the spectrum in the world, you can’t break the fundamental laws of physics.”
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