SpaceX shares of AT&T, Verizon and T-Mobile fell in after-hours trading Thursday after Elon Musk’s company agreed to acquire a nationwide spectrum portfolio from digital infrastructure firm Grain Management. The deal includes up to 14 megahertz of paired spectrum in the 800 MHz band and requires approval from the Federal Communications Commission (FCC). SpaceX says the low-band spectrum could help Starlink Mobile expand into the U.S. mobile market and compete more directly with traditional carriers.
The agreement comes as the FCC considers opening more spectrum for satellite-to-phone services, potentially benefiting SpaceX and Amazon. Industry analysts say the deal could intensify competition, although SpaceX may still need ground-based towers to improve coverage inside buildings and in urban areas. The company is also building on Starlink, its main profitable business, which generated $4.29 billion in revenue and $1.66 billion in operating income in the second quarter. Starlink served 12 million subscribers across 205 countries as of June 30.
Beyond satellite connectivity, SpaceX is expanding into artificial intelligence and cloud computing while working to make its Starship rocket fully reusable. If regulators approve the spectrum purchase, the company could combine satellite and ground-based networks to broaden its mobile coverage. SpaceX shares recovered about 2.5% in after-hours trading after falling 4% during the regular session, while telecom investors weighed the prospect of a new competitor with ambitions to challenge established carriers.
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