SpaceX’s Spectrum Purchase Sparks Market Turmoil
SpaceX acquires $8B spectrum, threatening T-Mobile and AT&T as satellite service expands.
2 min read
SpaceX has made a significant move in the telecommunications industry by acquiring a nationwide low-band spectrum portfolio for $8 billion from private equity firm Grain Management, according to Reuters. This acquisition is seen as a critical step in SpaceX’s plan to challenge traditional phone carriers across the United States with satellite-based service.
Starlink Mobile’s New Capabilities
While Starlink Mobile already has satellite-to-cellular service with 2 GHZ mid-band spectrum, the new technology will allow the company to provide cell service through obstacles like walls and trees, according to Reuters. This means SpaceX could entirely bypass cell tower infrastructure and provide cell phone service directly from space.
🇺🇸 JUST IN: Elon Musk ’s SpaceX is buying nationwide spectrum to make Starlink a major telecom operator in the US.
Share prices for carriers such as T-Mobile and AT&T declined 11 percent and 7.4 percent respectively upon the announcement from SpaceX, according to a report from CBS News. This decline reflects investor concerns about the potential disruption to the traditional cellular network.
Musk’s Vision for Satellite Connectivity
“This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” Musk described on social media.
This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America
SpaceX said in a statement that once they receive approval from the Federal Communications Commission, Starlink Mobile “will deploy a flexible architecture combining our satellite-to-mobile constellation in space with an advanced terrestrial deployment that can seamlessly connect devices everywhere.”
Technology and Coverage
“While Starlink Mobile’s global 2 GHz mid-band spectrum will provide high-bandwidth capacity in the United States, this new low-band spectrum will provide a coverage layer that ensures Starlink Mobile’s signal penetrates through obstacles, such as walls, and can provide service to customers’ devices even when they are in buildings,” the company described.
We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for @Starlink to become a major mobile carrier in the US.
Critically, most existing mobile devices already support this underused band. The technology would allow SpaceX to become the “first network operator to deploy both satellite and terrestrial spectrum.”
“One network that provides Americans with a reliable service indoors, outdoors, in cellular dead zones, and everywhere in between,” the company added.
Source: The Gateway Pundit
