SpaceX has moved closer to strengthening its wireless ambitions after the Federal Communications Commission (FCC) accepted its application to acquire Grain Management’s 800MHz lowband spectrum portfolio. The development marks an important step towards expanding the company’s Starlink Mobile plans, although the transaction could still face opposition until December 8.
SpaceX is reportedly offering $8 billion in cash for Grain’s spectrum assets. Grain acquired the 800MHz portfolio from T-Mobile in August 2026 through a $2.9 billion cash transaction that also involved the transfer of Grain’s 600MHz spectrum.
The proposed acquisition could give SpaceX up to 14MHz of paired spectrum in the 800MHz band. This would fill a gap in its existing spectrum portfolio and strengthen its position in the US wireless market. The spectrum is also expected to complement the company’s next-generation satellite network and its larger 2GHz holdings.
Analysts at LightShed Partners believe SpaceX could use the 800MHz spectrum as the “base layer” of a future terrestrial network.
When announcing the Grain deal, SpaceX said, “Once we receive final FCC approval, Starlink Mobile will deploy a flexible architecture combining our satellite-to-mobile constellation in space with an advanced terrestrial deployment that can seamlessly connect devices everywhere … Critically, most existing mobile devices already support this underused band.”
A terrestrial network expansion could also benefit tower companies, which have faced challenges following the shutdown of Dish Wireless’s nationwide 5G network. Its parent company, EchoStar, sold spectrum to SpaceX and AT&T after the FCC launched an investigation into its 5G network deployment obligations and spectrum licence rights.
SpaceX continues its search for spectrum
While the Grain acquisition would strengthen SpaceX’s lowband holdings, the company may need additional spectrum to build a competitive mobile network.
SpaceX is expected to participate in an upcoming auction of upper C-band spectrum. New Street Research has also suggested that the company could explore the 600MHz spectrum held by Comcast and Bluewater Wireless to improve its lowband coverage.
However, spectrum acquisition alone may not be sufficient. Industry observers believe SpaceX could need a mobile virtual network operator (MVNO) agreement with AT&T, T-Mobile or Verizon to compete effectively in the US wireless market. So far, these carriers have shown reluctance towards such an arrangement.
MoffettNathanson analyst Craig Moffett has noted that SpaceX still lacks the assets required to offer a service that can compete with the country’s 3 major mobile carriers.
Qualcomm partnership supports terrestrial network plans
Despite these challenges, SpaceX is continuing to develop its own network capabilities. Last week, the company entered into a partnership with Qualcomm, which is expected to provide key infrastructure and semiconductor components for its planned nationwide terrestrial radio access network (RAN).
The partnership, combined with the proposed Grain spectrum acquisition, signals SpaceX’s broader effort to bring satellite and terrestrial connectivity together as it expands its Starlink Mobile ambitions.
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