SpaceX agrees to acquire a low-band spectrum portfolio to help Starlink “become a major mobile carrier in the US”; AT&T, T-Mobile, Verizon fall 6%+ after hours
Elon Musk's SpaceX said it acquired low-band spectrum that will enable it to use its Starlink satellites to become a …
The spectrum move follows the FCC’s approval of EchoStar spectrum sales to both SpaceX and AT&T, turning a satellite-to-cell strategy into a more direct challenge to the established U.S. mobile market.
First-order effects
SpaceX gains spectrum control needed to pursue Starlink Mobile under its own carrier strategy, rather than relying solely on T-Mobile’s supplemental-coverage arrangement.
AT&T, T-Mobile and Verizon face an immediate investor reassessment, reflected in the after-hours declines reported alongside the deal.
Second-order effects
T-Mobile must reassess how a Starlink partner that aims to be a major carrier affects the strategic value and boundaries of their existing direct-to-cell relationship.
AT&T’s separately approved EchoStar spectrum purchase gives it additional spectrum assets, while SpaceX’s move raises the competitive importance of integrating spectrum with satellite coverage.
Third-order effects
If Starlink executes on its carrier ambition, U.S. wireless competition shifts toward companies that control both licensed spectrum and satellite infrastructure, not only terrestrial network operators.
The deal strengthens the case for spectrum transactions as a route for satellite operators to move from coverage partnerships into direct retail mobile competition.
The trend: Carrier-led space connectivity is evolving from satellite add-ons for terrestrial operators into vertically integrated mobile-network strategies.
If SpaceX shows up with a global plan for $30 a month...they would cleanup overnight. [embedded post]
@andrewcurran_
Andrew Curran on x
Starlink Mobile intends to become a major U.S. carrier, with coverage at every point in the country. [image] [embedded post]
@wallstreetmav
@wallstreetmav on x
During the Biden Administration they passed a $42 billion program to provide rural internet access. Biden kicked SpaceX out of the program entirely due to political reasons. SpaceX achieved global (not just USA) internet access without even using the Biden program subsidies.
@michaelnicollsx
Michael Nicolls on x
Big day for @Starlink Mobile...
@cremieuxrecueil
@cremieuxrecueil on x
Remember when the Biden admin set up a $42.5bn dollar program for rural broadband? Despite awarding over $18 billion, it hasn't even connected 1% of the people it was supposed to after more than 5 years. Starlink is going to beat it to the punch for a fraction of the cost.
@brivael
Brivael Le Pogam on x
Call SpaceX Starlink will become a global telecommunications network in order to become a Kardashev civilization.
@usr_bin_roygbiv
Roy on x
It is easier to launch 13,000 satellites into low earth orbit communicating via laser beams than it is to repeal the telecommunications act of 1996 [embedded post]
@dpoddolphinpro
Ryan Caton on x
If you still (somehow) didn't believe that SpaceX was a telecommunications company... This old thumbnail of mine is getting truer by the day 😅 [image] [embedded post]
@davesgoldman
David Goldman on x
Heck yeah! More connectivity, right to your phone. 🤳 [embedded post]
@spacex
@spacex on x
We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for @Starlink to become a major mobile carrier in the US. With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to high-speed…
@niedermeyer.online
E.W. Niedermeyer on bluesky
can't wait to give the guy who's buying elections to stay out of prison direct access to all of my mobile data [embedded post]