SpaceX expands mobile ambitions with spectrum license acquisition

SpaceX is advancing its plans to build a mobile network to compete with major US carriers such as AT&T, Verizon, and T-Mobile. The company has moved to acquire a portfolio of radio frequency spectrum licenses in the 800 MHz band from Grain, a transaction valued at nearly $8 billion.

To support this initiative, the Federal Communications Commission (FCC) has approved an application for the second generation of Starlink Mobile satellites. SpaceX plans to deploy 15,000 satellites optimized for the 2 GHz spectrum, which is expected to provide over 100 times the bandwidth of the current generation. The 800 MHz spectrum is particularly significant as it is supported by most smartphones and aids signal penetration through obstacles like walls.

The company aims to create a hybrid network that integrates satellite communication with terrestrial infrastructure to provide connectivity indoors, outdoors, and in areas lacking traditional mobile coverage. However, industry analysts note significant challenges, including the massive capital requirements—estimated by TD Cowen to exceed $80 billion—and the technical difficulty of maintaining reliable connections between satellites and small-antenna mobile devices in urban environments.