SpaceX will purchase important spectrum, which could help Starlink Mobile become a major US cell phone carrier.
SpaceX has a deal to buy low-band spectrum so Starlink Mobile signals can reach indoors, as it aims to take on big US carriers.
SpaceX agreed to acquire the spectrum licences from telecoms investment firm Grain Management, which bought them from T-Mobile. The transaction is subject to FCC approval and other customary closing conditions.
In its FCC filing [PDF] regarding the transaction, SpaceX says it intends to roll out its own terrestrial infrastructure for this purpose, operating standard wireless equipment such as antennas on towers, rooftops, and other structures to provide reliable signal coverage.
Financial terms of the agreement were not disclosed. We asked SpaceX for further details and will update if we get answers.
The rocket-flinging operation says it cut a deal to acquire a nationwide low-band spectrum license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band, which will pave the way for Starlink Mobile to become a major cellular carrier in the US.
The announcement from SpaceX caused telecom companies’ shares to tumble as investors considered the potential impact of a major new industry player. T-Mobile shares slid $18.58, or 11%, to $152.72 in morning trading on Friday, while AT&T slipped $1.83, or 7.4%, to $22.76.
Shares of SpaceX gained $2.61, or 1.6%, to $163.18.
