SpaceX has acquired low-bandwidth spectrum licences to launch a Starlink mobile service for US consumers, sending shares of major American telecoms plunging. The company is buying up to 14 megahertz of paired spectrum in the 800MHz band. Verizon Communications dropped 7 per cent, AT&T tumbled 7.5 per cent, and T-Mobile US fell 6.7 per cent in after-hours trading.
SpaceX chief executive Elon Musk called the acquisition a "very big deal." The move marks one of the company's most significant commercial expansions since launching Starlink satellite broadband, now available in over 160 countries. SpaceX paid $17bn for wireless spectrum licences from Echo Star last year. The low-band spectrum will provide a coverage layer allowing Starlink Mobile signals to penetrate walls, enabling indoor device use.
Analysts at Bernstein noted the acquisition makes a nationwide network more credible and less expensive. SpaceX plans to combine satellite-to-mobile services with a terrestrial network to connect devices everywhere, pending final approval from the Federal Communications Commission.
Source: Financial Times Companies · Summarized by HeadlinesBriefing