SpaceX is taking a major step towards expanding its satellite-based mobile services in the United States after agreeing to acquire a nationwide low-band spectrum portfolio from private-equity firm Grain Management. The deal could strengthen Starlink Mobile’s ability to compete directly with traditional wireless carriers.
According to a report by the Wall Street Journal, citing people familiar with the matter, SpaceX will pay approximately $8 billion in cash for the assets. However, the financial terms have not been officially disclosed, and neither SpaceX nor Grain Management immediately responded to requests for comment.
Starlink Mobile currently uses global 2 GHz mid-band spectrum to provide high-bandwidth satellite-to-cellular connectivity. The newly acquired spectrum is expected to improve signal coverage by helping transmissions travel longer distances and pass through obstacles such as walls and tree cover. This could address a key technical challenge for satellite-based mobile networks.
By combining nationwide low-band spectrum with its satellite network, SpaceX aims to improve connectivity without relying entirely on conventional cell towers. The move could transform satellite-to-device services from a backup option for remote areas into a direct competitor to established mobile networks.
Shares of T-Mobile US, Verizon and AT&T fell around 6% in extended trading following the news. The 3 carriers formed a satellite-focused joint venture in May, which some analysts view as a response to the growing competitive threat from SpaceX.
Analysts at William Blair noted that established wireless carriers have questioned whether SpaceX can match the quality of their networks. They also expect the company to offer an attractive bundle combining Starlink broadband and Starlink Mobile, potentially including Grok, the AI chatbot developed by xAI.
The transaction covers 100% of Grain Management’s nationwide 800 MHz spectrum portfolio and remains subject to approval from the Federal Communications Commission (FCC). Grain acquired the spectrum from T-Mobile earlier this year.
FCC Chair Brendan Carr said the agreement could encourage further investment and create opportunities for providers while strengthening US leadership in next-generation technologies. Grain CEO David Grain said the deal has “the potential to change where and how Americans connect.”
Most existing mobile handsets support the 800 MHz frequency band, potentially allowing consumers to access the service without buying specialised satellite phones. However, Verizon spokesperson Rich Young cautioned that spectrum ownership alone would not guarantee a functioning network, noting that SpaceX still needs the infrastructure to use the available airwaves effectively.
The FCC also approved Starlink Mobile’s Gen2 constellation application this week, authorising SpaceX to launch 15,000 satellites optimised for 2 GHz spectrum worldwide. The new satellites will operate in very low Earth orbit, with the aim of delivering greater bandwidth and low-latency connectivity to standard mobile handsets.
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