Starlink spectrum deal boosts Musk plan to beat AT&T, T-Mobile, and Verizon

SpaceX said that once it deploys all its spectrum and launches next-generation satellites, it will be able to offer US residents “a reliable service indoors, outdoors, in cellular dead zones, and everywhere in between.” SpaceX previously told the Canadian government in a filing that it “will begin launching its next-generation Starlink direct-to-device satellites with service beginning by late 2027,” and launch “thousands more satellites” by the end of 2028.

Terms of the SpaceX/Grain spectrum deal were not disclosed. Grain originally obtained the spectrum from T-Mobile in a swap that included cash and other spectrum licenses. Specifically, T-Mobile sold its 800 MHz spectrum licenses to Grain for $2.9 billion and Grain’s 600 MHz spectrum licenses that consist of 10 MHz in 212 counties covering approximately 15 percent of the US population.

“The 800 MHz licenses that Grain is acquiring (817–824 MHz paired with 862–869 MHz)—a valuable source of paired, broadband-ready, low-band spectrum—have been underutilized in recent years,” the FCC said in its approval of the cash-and-spectrum swap.

Big carriers pool spectrum to counter SpaceX

Dish was previously given the first option to buy the 800 MHz spectrum under a merger condition imposed by the US Department of Justice on T-Mobile’s purchase of Sprint. Dish declined the option to buy it for $3.59 billion, and the offer expired in 2024, forcing T-Mobile to find a new buyer.

AT&T, T-Mobile, and Verizon are trying to counter SpaceX’s moves into mobile by pooling spectrum for a new joint venture focused on using satellite to cover dead zones in terrestrial networks. The big three carriers finalized the joint venture agreement last week, saying it will give other satellite operators a better chance to compete.

The venture will “improve the application and utilization of valuable and scarce nationally licensed spectrum resources,” the carriers said. They said they plan industry-wide device compatibility through a “standards-based approach to development involving operating system providers, mobile app developers and original equipment manufacturers.”

Existing carrier-satellite agreements will remain in place, and the three big carriers “can continue connectivity efforts independently,” the press release said. Meanwhile, an FCC plan announced this week could auction 25 MHz of mid-band spectrum for use in terrestrial and satellite networks.

The FCC also proposed rule changes that would allow 482 MHz of spectrum to be used for satellite-to-mobile service. This would be an expansion of the Supplemental Coverage from Space (SCS) framework in which terrestrial wireless spectrum is made available for satellite use.