SpaceX, Elon Musk's company, is no longer satisfied with satellite internet and is entering the United States wireless market by acquiring mobile frequency spectrum. According to The Wall Street Journal, the company reached an agreement with investment firm Grain Management to purchase spectrum licenses. The deal is valued at about $8 billion and is SpaceX's largest step to compete with operators such as AT&T, Verizon, and T-Mobile. The agreement was announced on Thursday, October 8.
The deal includes the 800 MHz band spectrum intended for mobile services via ground-based infrastructure, such as cell towers, not satellites. Reuters wrote that SpaceX is buying up to 14 MHz of paired spectrum in the lower 800 MHz band from Grain Management. These waves travel farther and penetrate buildings better than higher-frequency signals, making them suitable for wide mobile coverage. In contrast, higher-frequency spectrum carries more data at higher speeds but typically covers a smaller area.
The execution of the deal still requires approval from the U.S. Federal Communications Commission (FCC). If approved, SpaceX intends to combine this spectrum with ground radios and antennas and its next-generation Starlink satellite network to build a more comprehensive wireless service. This spectrum can fill gaps that satellites struggle to reach, including indoor spaces.
A SpaceX Falcon 9 rocket carrying the company's 250th dedicated Starlink mission.
The 800 MHz spectrum, due to favorable propagation characteristics, including better penetration through vegetation and building materials, will complement Starlink's existing 2 GHz capacity. Reuters wrote that most current smartphones support the 800 MHz band without modification. That means users will likely not need new phones to use it.
SpaceX has previously extended Starlink beyond conventional broadband internet. The company has worked with T-Mobile for over a year to provide primary wireless connectivity in remote areas and has been launching newer, higher-capacity satellites. The FCC has also approved the company's plan to launch up to 15,000 satellites dedicated to mobile services. Of course, approval of a satellite constellation license does not mean approval of spectrum purchase, and these are separate regulatory filings.
But simply buying spectrum does not make SpaceX a nationwide carrier. The company still needs to build ground infrastructure, such as cell towers or rooftop equipment, to use these frequencies for conventional mobile services. Building a traditional tower network can cost billions of dollars, although SpaceX executives have mentioned smaller cells as an alternative.
According to Digital Trends, the market reacted quickly to the news. AT&T, Verizon, and T-Mobile shares fell more than 6 percent in after-hours trading, while SpaceX shares rose about 3 percent. Another report said T-Mobile shares fell 7.2 percent in after-hours trading. The deal is particularly sensitive for T-Mobile because this portfolio had previously been sold from the company's asset pool to Grain Management and could now become a potential rival. T-Mobile sold this spectrum to Grain Management in March 2025 for $2.9 billion.
60 SpaceX Starlink satellites, shortly before deployment
This is not SpaceX's first major investment in spectrum. Last year the company signed a roughly $17 billion contract to buy satellite spectrum rights from EchoStar and later agreed to buy additional terrestrial licenses from the same company for $2.6 billion. The agreement with Grain Management is a new chapter in that strategy.
For consumers, the potential benefit of this plan is broader coverage, especially in areas where access to the regular cellular network is difficult. However, there is no guarantee of better coverage or lower prices, and SpaceX has not yet presented a full plan for an independent mobile service.