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Elon Musk’s reach spans multiple global industries, placing the billionaire (sometimes trillionaire, depending on the stock market) at the center of the electric-vehicle industry, space exploration, artificial intelligence and national politics. He’s already involved in telecommunications through his company SpaceX and its global satellite internet service, Starlink, but recent developments may soon expand his influence with satellite-to-cellular coverage.
SpaceX announced on X Thursday that it has agreed to acquire nationwide 800 MHz low-band spectrum to help build Starlink Mobile into a major US cellular carrier. By acquiring these low-band airwaves, SpaceX said it aims to improve signal propagation, allowing satellite coverage to bypass physical obstacles like building walls, dense foliage, and hilly terrain
“This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” Musk posted on X.
A SpaceX representative did not immediately respond to a request for comment.
Under the terms of Thursday’s announcement, SpaceX will acquire investment firm Grain Management’s nationwide 800 MHz low-band spectrum portfolio for an estimated $8 billion. The deal gives the satellite operator up to 14 megahertz of paired airwaves, enabling two-way data transmission between satellites and mobile devices. The acquisition remains subject to approval by the Federal Communications Commission, which has not yet set a timeline for a decision.
Acquiring the low-band spectrum is crucial for Starlink Mobile’s cellular ambitions. Unlike the high-frequency beams used currently, these low-band airwaves possess the physical properties required to pierce concrete walls, dense foliage and urban infrastructure, effectively solving the indoor dead zone problem that has long limited satellite-to-phone connectivity.
Also this week, the FCC gave SpaceX the go-ahead to launch 15,000 satellites, which the company said can deliver more than 100 times the bandwidth of its current satellites. These satellites are direct to device, meaning that they can transmit phone calls, texts and other data straight from space to devices on the ground. SpaceX said the new satellites will bring “high-speed service directly to unmodified devices anywhere in the world.”
What does it mean for consumers?
For people looking for an alternative to the big three cellphone carriers AT&T, T-Mobile and Verizon Wireless, Starlink Mobile could eventually be an option.
If and when the FCC approves the deal with Grain Management, Starlink Mobile will combine its newly acquired low-band spectrum with a massive, freshly approved fleet of 15,000 next-generation satellites. This hybrid network will use a mix of satellite beams and ground infrastructure to penetrate walls and eliminate indoor dead zones across the US while leveraging its high-bandwidth frequencies to deliver high-speed data directly to ordinary mobile devices. SpaceX plans to accelerate deployment of the new system next year.
But according to analyst Tim Farrar, an industry expert with research firm Telecom, Media and Finance Associates, simply acquiring low-spectrum bandwidth in this week’s deal won’t be enough to compete strongly against AT&T, T-Mobile and Verizon Wireless, which uses thousands of cellphone towers.
“It’s still a very limited amount of spectrum, and to get reliable building penetration in urban areas, SpaceX would have to deploy towers on the ground,” Farrar told CNBC.
Last month, T-Mobile’s chief financial officer, Peter Osvaldik, dismissed the idea that Starlink’s satellite-to-cell service could adequately compete with the traditional wireless coverage offered by the major carriers. “It’s not a competitive threat,” Osvaldik said at the Global TMT Conference.
“By the time the signal has gotten to your phone, you have no signal strength left,” he added. “You can have a million satellites up there with all the spectrum in the world, you can’t break the fundamental laws of physics.”
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