SpaceX announced they will acquire technology that will allow them to challenge phone carriers across the United States with satellite-based service.
Reuters reported on Thursday that the rocket company led by Elon Musk will purchase a nationwide low-band spectrum portfolio for $8 billion from private equity firm Grain Management.
While Starlink Mobile already has satellite-to-cellular service with 2 GHZ mid-band spectrum, the new technology will let the company provide cell service through obstacles like walls and trees, according to Reuters.
That 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.
SpaceX has agreed to acquire a nationwide low band spectrum license portfolio, per Reuters.
Carrier stocks dropped after hours:
– AT&T: down 3.6%
– Verizon: down 3%
– T-Mobile: down 2.7%
It comes two days after the FCC approved 15,000 Starlink Mobile satellites and waived a rule requiring SpaceX to lease through a ground carrier.
— Coin Bureau (@coinbureau) October 8, 2026
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.
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Beyond challenging traditional cell carriers, SpaceX would be able to provide satellite connectivity that extends beyond emergency service in dead zones.
“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
— Elon Musk (@elonmusk) October 8, 2026
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.”
“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.
With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to high-speed mobile broadband no matter where they are → https://t.co/1Uaf48v5pm
— SpaceX (@SpaceX) October 8, 2026
“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.
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