SpaceX agrees to buy 800 MHz spectrum for Starlink Mobile
Oct 12, 2026
SpaceX (NASDAQ: SPCX) has agreed to acquire up to 14 MHz of paired nationwide spectrum in the 800 MHz band from Grain Management, a private investment firm. The agreement was announced on Thursday, October 8, 2026. The spectrum is intended for Starlink Mobile, SpaceX's service that connects mobile phones directly to its satellites. The transaction is subject to approval by the US Federal Communications Commission (FCC) and other customary closing conditions.
Deal terms
SpaceX did not disclose the financial terms. The Wall Street Journal reported, citing people familiar with the matter, that SpaceX will pay about $8 billion in cash. This figure has not been confirmed by the companies.
According to industry publication Fierce Network, the 800 MHz assets were previously offered for sale at about $3.6 billion. Grain acquired the spectrum earlier this year from T-Mobile as part of a spectrum swap. The frequencies were originally used by Nextel for its iDEN network.
What SpaceX said
Elon Musk described the spectrum as the "last critical piece" SpaceX needs to provide complete phone coverage in the US. Some industry analysts quoted in trade publications questioned whether satellite service alone can deliver complete coverage, particularly indoors and in dense urban areas. SpaceX said most existing mobile devices already support the 800 MHz band.
Previous spectrum purchases
The agreement follows SpaceX's September 2025 agreement to purchase AWS-4 and H-block spectrum licences from EchoStar for approximately $17 billion. With these purchases, SpaceX holds spectrum that can be used for direct-to-device mobile services, in addition to the frequencies used by its Starlink broadband network.
Market reaction
Shares of the three largest US mobile carriers fell on Friday, October 9, the first full trading session after the announcement. T-Mobile US (NASDAQ: TMUS) closed down 13.3%, AT&T (NYSE: T) closed down 9.8% and Verizon (NYSE: VZ) closed down 8.8%, according to Axios.
Shares of tower operators moved higher. Crown Castle (NYSE: CCI) rose about 13% and American Tower (NYSE: AMT) rose about 8% during the session, according to Yahoo Finance and Wireless Estimator. In a report dated October 8, Bernstein analysts said the deal could be a potential catalyst for tower companies. This is analyst commentary, not a company statement.
What is direct-to-device?
Direct-to-device (D2D) services allow standard mobile phones to connect to satellites without special equipment. They are typically used to provide coverage in remote areas where there is no mobile network. Several companies, including SpaceX and other satellite operators, are developing these services, often in partnership with mobile carriers. Low-band spectrum, such as the 800 MHz band, can travel longer distances and pass through obstacles more easily than higher-frequency bands, which makes it useful for wide-area coverage.
Regulatory process
The FCC must approve the transfer of the spectrum licences before the deal can close. The timing of the review has not been announced by the regulator. Regulators may consider issues such as interference with other services and competition in the US wireless market.
Risks and uncertainties
The transaction may not be completed on the expected terms or at all. The reported price is based on media reports and has not been confirmed. The commercial success of satellite-to-phone services depends on factors such as network capacity, device compatibility, pricing, regulatory approvals and competition. Share prices of the companies mentioned can be volatile in response to news about competition and regulation.
What this means for investors
For Investing.one users following SPCX, TMUS, T, VZ, CCI or AMT, the agreement and the FCC review process may be relevant. The share price moves described above reflect a single trading session and may not continue.
Sources
This is not investment advice. Your capital is at risk. Past performance does not guarantee future returns.
www.investing.one is solely and exclusively operated by Tradeplace Limited (Registration number HE 434666). Tradeplace Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (License number 455/25).
The information on this website is general in nature. Please consider the information in light of your objectives, financial situation and needs.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn't guarantee future results.
We do not establish accounts to residents outside of the EU/EEA area. For further details please see the Client Agreement - Terms and Conditions. For privacy and data protection related complaints and information on handling personal data please refer to our Privacy Policy.
