SpaceX wants Starlink to stop being a satellite Internet service and become one of the major mobile operators in the United States. To achieve this, Elon Musk’s company has reached an agreement with Grain Management, an investment firm that wants to buy radio spectrum licenses so that its satellites can offer mobile coverage even inside buildings.
The agreement (announced by SpaceX on October 8) envisages the acquisition of 800 MHz frequencies, since these have a greater ability to pass through obstacles such as walls or ceilings. Until now, this has been one of Starlink Mobile’s problems, but according to Musk, the operation represents the last step they have taken to provide telephone coverage across the country.
Of course, Musk can’t claim victory just yet, given that the purchase requires approval from the United States Federal Communications Commission (FCC). SpaceX aims to integrate its satellite network with a ground infrastructure that allows mobile phones to stay connected, and apparently, the company already has approvals to deploy 15,000 second-generation satellites. However, this does not mean that your new mobile network is ready to go.
SpaceX’s announcement has already sent stock markets plunging among major operators
The possibility of Starlink becoming a direct competitor of American telephone companies in the market has not diminished much. After the deal was announced, T-Mobile shares fell 11% on the morning of Oct. 9, while AT&T shares fell 7.4%. Investors thus began to assess the consequences of SpaceX’s entry into a sector dominated by large operators.
But analysts feel there is still a long way to go. John Hodulik of UBS noted that the acquired frequencies are compatible with current phones and he does not foresee major regulatory hurdles, though he cautioned that it will take time for SpaceX’s mobile business to develop. Therefore, the deal does not mean that Starlink can immediately compete with traditional networks.
The company, for its part, is already taking steps to build that infrastructure. On November 4, Qualcomm announced an agreement with SpaceX to provide equipment and technology for its future 5G terrestrial network. The deployment is scheduled to begin in 2027, so we still have to wait to see how far its plans go as a mobile operator.
Picture | TED (YouTube)
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