SpaceX has reached an agreement with private equity firm Grain Management to acquire the firm’s entire nationwide 800 MHz low-band spectrum portfolio. The spectrum acquisition, if approved, could significantly strengthen Starlink Mobile’s capacity to deliver direct-to-device connectivity across the United States, potentially allowing signals to reach standard handsets without relying on conventional cell towers.
The financial terms of the agreement were not officially disclosed by either party. However, the Wall Street Journal, as cited by Reuters, reported that SpaceX would pay approximately US$8 billion in cash for the assets, citing people familiar with the matter. The spectrum acquisition remains subject to approval by the Federal Communications Commission.
- The agreement covers 100% of Grain Management’s nationwide 800 MHz spectrum portfolio.
- SpaceX is the acquiring entity, and Grain Management is the seller.
- The transaction requires FCC approval before it can be completed.
- The Wall Street Journal, cited by Reuters, reported the deal at approximately US$8 billion in cash; neither SpaceX nor Grain confirmed the figure.
- Grain Management acquired the airwaves from T-Mobile earlier this year.
Low-Band Spectrum Could Extend Starlink Mobile Coverage
Starlink Mobile already holds global 2 GHz mid-band spectrum designed for high-bandwidth capacity. The proposed spectrum acquisition of Grain’s low-band 800 MHz portfolio could complement those mid-band holdings by addressing a persistent challenge in satellite communications. According to Reuters, low-band frequencies can travel longer distances and penetrate obstacles such as walls and tree cover, qualities that could improve both broad coverage and in-building reliability for direct-to-device services.
Grain CEO David Grain said the deal has “the potential to change where and how Americans connect.”
Most existing mobile handsets already support the 800 MHz frequency band, which could reduce the need for consumers to buy proprietary satellite phones. However, Verizon spokesman Rich Young cautioned that spectrum alone is not sufficient. “This company can have tons of spectrum available, but if they do not have the network to use it, it doesn’t matter. It’s just empty airwaves,” Young said.
Shares of major wireless carriers fell around 6% in extended trading following the news. The three largest carriers had formed a satellite-focused joint venture in May, a move some analysts believe was intended to counter competitive pressure from SpaceX.
FCC Approval Remains a Key Transaction Milestone
The spectrum acquisition between SpaceX and Grain Management cannot proceed without FCC approval, and that regulatory milestone has not yet been reached. In response to the agreement, FCC Chair Brendan Carr offered a supportive tone: “We are going to see more investment, more opportunities for a range of providers, and America leading the world in next-gen technologies to the benefit of consumers all across the country,” Carr said.
Separately, the FCC this week approved Starlink Mobile’s Gen2 constellation application, authorizing SpaceX to launch 15,000 satellites optimized for 2 GHz spectrum globally. The Gen2 satellite fleet is intended to operate in very low Earth orbit, delivering expanded bandwidth and low-latency connections to standard handsets. This authorization is distinct from the pending spectrum acquisition and does not constitute approval of the Grain Management transaction.
- FCC approval is still required for the spectrum acquisition to close.
- The FCC separately authorized Starlink Mobile’s Gen2 constellation application.
- The Gen2 authorization covers 15,000 satellites optimized for 2 GHz spectrum.
- The satellite fleet is designed to operate in very low Earth orbit for low-latency direct-to-device connectivity.
- Most standard handsets support the 800 MHz band, potentially broadening the addressable market without specialized hardware.
William Blair analysts noted that “The incumbent wireless carriers have been vocal in expressing skepticism that SpaceX’s network will be able to match the quality of their networks,” adding, “We expect SpaceX to offer a very compelling Starlink broadband and Starlink Mobile bundle. The company may also include Grok in the package,” referring to the AI chatbot developed by Musk’s xAI.