SpaceX buys nationwide airwaves, and big phone carriers' shares sink
SpaceX agreed Thursday to buy Grain Management's nationwide 800 MHz airwaves to push its Starlink Mobile phone service indoors. The deal puts SpaceX on a path to compete with the carriers that sell most Americans their phone plans. AT&T, Verizon and T-Mobile shares fell as much as 7% after hours, though the FCC must still approve it.
SpaceX said Thursday it will buy a block of nationwide low-band airwaves from Grain Management, a private investment firm, and the deal covers up to 14 megahertz of paired spectrum in the 800 MHz band. The purchase still needs approval from the Federal Communications Commission, and financial terms were not disclosed.
The point is to get Starlink Mobile signals inside buildings, because low-band spectrum travels long distances and passes through walls. "This new low-band spectrum will provide a coverage layer that ensures Starlink Mobile's signal penetrates through obstacles, such as walls," SpaceX said. The company added that most phones already support the band.
SpaceX also stated its larger goal plainly. The airwaves fill "one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US," it said, PCMag reported. That would put the rocket company in direct competition with AT&T, T-Mobile and Verizon.
Investors reacted quickly. Carrier shares fell as much as 7% in after-hours trading, Financial News reported. SpaceX stock, which has traded on Nasdaq since June, closed at $164.30, up 1.68%. Elon Musk called the deal "an earthquake" for those who follow spectrum fights.
Not everyone is convinced. Satellite industry analyst Tim Farrar told PCMag the deal is "still a very limited amount of spectrum." He said reliable indoor service in crowded cities would require SpaceX to build an expensive network of towers on the ground.
The deal has a back story. Grain Management bought this spectrum from T-Mobile in a deal announced in early 2025 and closed in August for $2.9 billion in cash plus other licenses, Via Satellite reported. Last year, SpaceX also agreed to buy spectrum from EchoStar, the parent company of Boost Mobile, and on Tuesday the FCC approved its plan to launch 15,000 satellites for Starlink Mobile.
Today, Starlink Mobile is sold in the U.S. through T-Mobile as T-Satellite, offering texting and data on some apps in cellular dead zones.
What we know: SpaceX agreed to buy Grain's 800 MHz airwaves, and carrier stocks fell.
What we don't: When the FCC will rule, or when Starlink Mobile could sell phone plans on its own.
Where outlets agree Via Satellite and PCMag both report that SpaceX is buying up to 14 megahertz of 800 MHz spectrum from Grain Management, pending FCC approval.
Where they differ PCMag puts SpaceX's earlier EchoStar spectrum deal at a collective $20 billion, while Financial News says SpaceX agreed to pay roughly $17 billion.