SpaceX (SPCX.US) completes low-frequency spectrum allocation, targeting the entire US mobile communications market! The three major US telecom stocks plunge collectively after hours

According to reports from Zhihui Finance APP, SpaceX (SPCX.US) has reached an agreement to acquire a portfolio of low-band spectrum licenses covering the entire United States for mobile communications, paving the way for its Starlink Mobile service to enter the U.S. telecommunications market directly. This will enable it to use Starlink satellites to become a “major mobile operator” in the United States. Elon Musk posted on X on Thursday, stating that this low-band spectrum is “the last key piece of the frequency puzzle that SpaceX needs to provide full mobile coverage in the United States.”

Amid concerns about intensified competition and a potential price war, shares of the three major U.S. telecom operators fell after hours. At the time of writing, AT&T (T.US), T-Mobile US (TMUS.US), and Verizon (VZ.US) were all down more than 6%, while SpaceX was up nearly 3%.

It is reported that SpaceX is acquiring a nationwide 800 MHz low-band spectrum portfolio from private equity firm Grain Management. The transaction still requires approval from the U.S. Federal Communications Commission (FCC). This band includes up to 14 MHz of paired low-band frequencies. Low-frequency signals have strong penetration, helping to improve coverage indoors, outdoors, and in areas traditionally considered dead zones for cellular networks. Neither SpaceX nor Grain Management has publicly disclosed the financial terms of the agreement.

SpaceX said that Starlink Mobile’s existing global 2 GHz mid-band spectrum provides higher bandwidth capacity, while the newly acquired 800 MHz low-band spectrum will address key technical gaps related to signal penetration barriers, allowing it to build a “satellite + terrestrial” hybrid network. This will enable connections to devices everywhere.

These 800 MHz spectrum licenses were obtained by Grain Management after a spectrum swap with T-Mobile was completed in August. According to the terms of that transaction approved by the U.S. Federal Communications Commission, Grain Management was required to seek bidders to develop this previously underutilized spectrum. This was specified in an order from the FCC, which previously stated that the relevant bidding process should be completed by November 5.

These licenses cover nearly the entire U.S. population. The market believes that this spectrum is highly valuable in helping satellite service providers build terrestrial connections for voice services, a connection type known as a “network pilot.” According to a person familiar with thinking inside Grain Management in August, Grain Management has always believed that although the 800 MHz band was previously used only for terrestrial mobile communication services, satellite and terrestrial services can still coexist on this band.