Interpretation - What is the low-frequency spectrum obtained by SpaceX for Starlink Mobile?

Harshita Mary Varghese

Reuters, October 9 - SpaceX SPCX.O has agreed (link) to acquire a nationwide portfolio of low-band spectrum licenses in the United States, a deal reportedly valued at $8 billion. The company is seeking to expand its business beyond satellite internet and become a major competitor in the U.S. mobile market.

The company first revealed plans to enter the mobile services sector during its August earnings call. The announcement temporarily weighed down (link) its stock price, and also impacted shares of the three major U.S. wireless carriers — AT&T, T-Mobile, and Verizon — as investors assessed the potential competitive threat.

What is low-band spectrum?

Low-band spectrum refers to radio waves that travel longer distances and penetrate buildings more effectively than high-band spectrum, making it ideal for broad mobile network coverage.

This is different from mid- and high-band spectrums, which can transmit more data at higher speeds but cover smaller areas.

SpaceX has agreed to acquire up to 14 MHz of paired 800 MHz low-band spectrum licenses from Grain Management and plans to develop a hybrid architecture for Starlink Mobile, combining terrestrial infrastructure with satellite connectivity.

How does the U.S. spectrum licensing system work?

Commercial spectrum is a scarce resource in the U.S., regulated by the Federal Communications Commission (FCC), which typically assigns licenses for specific frequencies and geographic regions through auctions or other authorization processes.

License holders must comply with technical rules and deployment requirements, but transfers of licenses generally require regulatory approval before obligations are fulfilled.

SpaceX's recently agreed spectrum license deal is awaiting FCC approval.

What spectrum do the three major carriers hold?

AT&T's low-band spectrum portfolio includes the 700 MHz and 850 MHz bands, as well as the 600 MHz licenses acquired by purchasing EchoStar in July.

Verizon holds spectrum in the 700 MHz and 850 MHz bands, while T-Mobile's low-band spectrum includes the 600 MHz and 700 MHz bands.

What are the plans for STARLINK MOBILE?

The company plans to integrate this spectrum into its next-generation satellite system, while deploying terrestrial radio equipment and antennas on cell towers and rooftops.

The Federal Communications Commission (FCC) this week approved the second-generation (Gen2) Starlink Mobile satellite constellation application, authorizing SpaceX to launch 15,000 satellites globally optimized for the 2 GHz spectrum.

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