SpaceX plans to buy up to 14 megahertz of spectrum licenses in the 800 MHz band from investment firm Grain Management, in a move that would give the Starlink Mobile project a low-band terrestrial coverage layer alongside its satellite-based service. SpaceX submitted a request to the U.S. Federal Communications Commission (FCC) for approval of the deal, without disclosing its value.
The licenses cover approximately 100% of the U.S. population, but the amount of available spectrum varies from county to county, ranging from 4.85 to 14 megahertz. Grain bought these rights from T-Mobile earlier in 2026, after T-Mobile obtained them when it acquired Sprint in 2020, as part of conditions imposed by the U.S. government for approving the merger.
What changes in practice?
SpaceX is betting on the characteristics of the 800 MHz band, which offers longer range and better ability to penetrate terrain, obstacles, and buildings compared with higher frequencies. The company said this spectrum would serve as a coverage layer helping Starlink Mobile deliver signals to devices inside buildings, not only in open areas or what are known as cellular dead zones.
According to SpaceX, most current phones support this band, while the network will rely on radios and sector antennas on towers, rooftops, and other structures. This complements the 65 megahertz of nationwide mid-band spectrum licenses that SpaceX is buying from EchoStar in a $17 billion deal approved by the FCC in May 2026.
Part of a larger expansion
SpaceX says second-generation Starlink Mobile satellites will provide more than 100 times the bandwidth offered by the current generation, with direct service to unmodified devices. The FCC approved the company's request this week to launch up to 15,000 next-generation satellites, in addition to the 650 satellites SpaceX has launched for its current direct-to-device service.
The company expects to begin launching next-generation satellites and providing service by the end of 2027, with thousands of additional satellites launched by the end of 2028, according to a filing it submitted to the Canadian government. However, these dates and plans do not mean that the future service has become commercially available or that its stated performance has actually been achieved.
Competition and regulatory pressure
The deal could face objections from smaller telecom companies, as the Rural Wireless Association warned that spectrum aggregation deals, including SpaceX's deal with EchoStar, could weaken the ability of rural communications providers to compete. Dish had also previously declined an option to buy the 800 MHz band for $3.59 billion before the option expired in 2024.
Meanwhile, AT&T, T-Mobile, and Verizon completed an agreement for a joint venture focused on using satellites to cover areas not reached by their terrestrial networks. The FCC is also proposing to make 482 megahertz available for satellite-to-phone connectivity services, along with the possibility of offering 25 megahertz of mid-band spectrum for terrestrial and satellite use.
Why does this matter?
The move combines satellite coverage with ownership of low-band terrestrial spectrum, which could reduce one of the main technical constraints on turning Starlink into a fully integrated telecom operator in the United States. However, the plan's success will remain tied to FCC approval, the provision of terrestrial infrastructure and new satellites, and SpaceX's ability to manage the spectrum without increasing its concentration at the expense of smaller operators.