SpaceX Takes on AT&T and Verizon: Starlink Could Become a Major Cell Phone Carrier

Starlink Mobile could become a major telecommunications provider in the U.S. — SpaceX announced Thursday that it had reached an agreement to purchase a nationwide portfolio of low-frequency spectrum licenses, according to Reuters.

This refers to the range of radio frequencies used to transmit wireless signals: mobile communications, the Internet, television, radio, and satellite communications. Operators may only operate on the frequencies for which they hold a license. Starlink Mobile’s existing global 2 GHz mid-band spectrum will provide high network bandwidth in the U.S., and the new frequencies will allow the signal to penetrate obstacles, the agency notes.

The deal involves the acquisition of a spectrum portfolio from Grain Management, a company specializing in digital infrastructure, and is subject to approval by the Federal Communications Commission, according to CNBC. According to a SpaceX press release, the company is purchasing a portfolio of frequency licenses in the 800 MHz band (which allow signals to travel long distances and pass through obstacles, such as walls) with a total bandwidth of up to 14 MHz (the wider the bandwidth, the more data can be transmitted simultaneously).

SpaceX CEO Elon Musk has already called the agreement a "very important development"—he posted this on X while reposting a message about the deal.

SpaceX’s announcement that it has acquired a license to use the spectrum has already sent shares of other U.S. telecommunications operators tumbling, CNBC notes. Specifically, AT&T shares plummeted by more than 7% in after-hours trading on October 8; T-Mobile shares are showing a similar trend, while Verizon shares are down 6.5%.

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