Space Exploration Technologies Corp. (NASDAQ: SPCX) announced an agreement to acquire a nationwide portfolio of 800 MHz wireless spectrum from Grain Management. The transaction amount was not disclosed.
The acquisition is intended to address a key technical limitation as Starlink Mobile seeks to become a major U.S. wireless carrier. SpaceX stated that the low-band spectrum could improve signal penetration through walls and other obstacles, potentially expanding mobile connectivity.
The deal remains subject to final approval from the Federal Communications Commission.
Following the announcement, SpaceX shares rose 2.32% to $164.30 in after-hours trading on Thursday. In contrast, shares of major wireless carriers declined sharply after the news. AT&T Inc. fell 6.51%, Verizon Communications dropped 5.85%, and T-Mobile US Inc. slid 6.63%.
Jim Cramer and Gene Munster weighed in on the significance of the deal. Cramer reacted on X, saying the acquisition was "HUGE." Munster suggested the deal could eventually pave the way for an Elon Musk-backed smartphone.
Munster wrote on X that he believes SpaceX will eventually make a phone, despite Musk's previous comments to the contrary. He argued that a vertically integrated smartphone connected to Starlink’s mobile network could offer features traditional carriers cannot match, potentially alongside cheaper wireless service. Munster suggested such a product could pose a greater competitive threat to Samsung Electronics Co. than Apple Inc.
