Space Exploration Technologies Corp. (SPCX) has agreed to acquire the wireless spectrum holdings of Grain Management, a deal valued at approximately $8 billion, according to a report from Benzinga. The agreement was finalized on October 8, marking a significant move into the mobile telecommunications sector for the company founded by Elon Musk.
The acquisition comes after telecom analyst Roger Entner predicted in July that Musk would purchase wireless spectrum rather than acquire a mobile carrier. Entner, founder of Recon Analytics, noted that the deal was confirmed despite Musk previously dismissing reports of interest in Grain Management as “not true.”
Entner characterized Musk’s strategy as that of a “builder” rather than a buyer. He suggested that SpaceX is developing a chain of businesses to finance technology needed for Musk’s ultimate goal of putting humans on Mars. The analyst expects SpaceX to combine home internet and mobile subscriptions, with Musk designing his own cellular equipment rather than relying on established vendors like Ericsson or Nokia.
Musk described the deal as an “earthquake” for the telecom industry. However, Entner argued that the mobile business is a “sideshow” for SpaceX. He stated that the company does not need to overtake major carriers like Verizon (VZ), AT&T (T), or T-Mobile (TMUS) in subscriber count. Instead, the goal is to generate profits from Starlink Mobile to finance other ventures, including the development of Starlink Mars.
Financial data from the filing highlights Starlink’s current performance. In the second quarter, the connectivity business generated $1.7 billion in operating income on $4.3 billion in revenue, with sales increasing by 66% compared to the previous year. SpaceX is set to report third-quarter earnings on Tuesday, offering investors a fresh look at the division’s profitability.
Regarding the timeline for a full mobile network rollout, Entner predicts it will take until 2030 to 2032 to complete. He estimates that SpaceX could spend an additional $10 billion to $15 billion building its terrestrial network, excluding the spectrum purchase. Additionally, traders on Polymarket currently assign SpaceX a 24% chance of offering a U.S. mobile plan by the end of 2027.
