SpaceX deal to acquire spectrum license hammers shares of AT&T, Verizon and T-Mobile
SpaceX agreed to purchase a nationwide spectrum portfolio as it to pushes its Starlink service deeper into the U.S. telecommunications market.
TL;DR
- SpaceX is acquiring a nationwide spectrum portfolio from Grain Management to expand its Starlink Mobile service in the U.S.
- The deal involves a license for up to 14 megahertz of paired spectrum in the 800 MHz band and requires FCC approval.
- Shares of AT&T, Verizon, and T-Mobile experienced declines in extended trading following the announcement.
- This move positions SpaceX to directly compete with major U.S. mobile carriers, a battle previously highlighted by T-Mobile and AT&T's joint venture without Starlink.
- The acquisition comes shortly after the FCC announced proposals to auction spectrum for satellite-to-device services.
- Starlink, SpaceX's connectivity business, is its most profitable segment, with 12 million subscribers as of June 30 and significant operating income.