Space Exploration Technologies Corp (SPCX) announced Thursday that it has reached an agreement to acquire a nationwide portfolio of low-band spectrum licenses from Grain Management. The deal, valued at an undisclosed amount, is intended to support the expansion of Starlink Mobile into a major U.S. mobile carrier.
In a tweet, SpaceX stated that the acquisition of the 800 MHz spectrum addresses a key technical gap. The company noted that the low-band spectrum will allow Starlink Mobile signals to penetrate walls and other obstacles, enabling coverage indoors, outdoors, and in dead zones. SpaceX highlighted that upon receiving final approval from the Federal Communications Commission (FCC), Starlink Mobile will deploy and connect devices across the country.
The company described the transaction as a "very big deal" in a social media post by CEO Elon Musk. SpaceX emphasized that this move will allow Starlink Mobile to become the first network operator to deploy both satellite and terrestrial spectrum on a single network.
Following the announcement, shares of Space Exploration Technologies Corp rose 2.56% to $164.68 in after-hours trading. In contrast, stocks of major U.S. mobile carriers experienced significant declines. AT&T Inc (T) fell 7.92%, Verizon Communications Inc (VZ) dropped 6.90%, and T-Mobile US Inc (TMUS) decreased 6.78%.
