SpaceX agreed on October 8 to buy 14 megahertz of paired, nationwide spectrum in the 800 MHz band from Grain Management, a private investment firm, per Via Satellite. Terms were not disclosed. The Wall Street Journal valued the deal at about $8 billion. Grain had acquired the block from T-Mobile in a sale completed in August for $2.9 billion in cash plus other spectrum licenses.
The purchase is proposed until the FCC approves the license transfer. Nothing changes hands before that. FCC Chairman Brendan Carr told CNBC that competition in the spectrum market was "really good news for the American consumers." A statement on television is a view. The transfer still needs a formal review.
Low-band spectrum solves a specific problem for Starlink Mobile. Signals at 800 MHz pass through walls, so the band gives the service indoor coverage that satellites alone cannot provide. SpaceX says most existing phones already support it. The FCC recently approved 15,000 direct-to-device satellites for the service, and SpaceX says it will be the first operator to combine satellite and terrestrial spectrum. We covered the FCC's September satellite spectrum order here.
Carrier shares fell hard on October 9. T-Mobile dropped 13.27%, AT&T 9.81%, and Verizon 8.75%, its worst day since July 2002, per CNBC. The three carriers had formed a joint venture for direct-to-device service on October 2 without Starlink. Bernstein estimates a competitive nationwide network could cost up to $130 billion to build. SpaceX describes the 14 megahertz as a coverage layer. Tower owners held up in the selloff.
Bottom Line
SpaceX bought indoor coverage, and it does not own it until the FCC signs off. If you sell to carriers or lease them towers, watch the transfer application and any conditions attached. If you are a mobile customer, nothing changes yet. No consumer launch date has been given.