SpaceX has agreed to purchase nationwide low-band spectrum licenses to launch Starlink Mobile as a major U.S. cellular carrier, a move that triggered sharp declines in telecom stocks on Friday. The company will buy up to 14 megahertz of 800 MHz spectrum from investment firm Grain Management, which acquired the licenses from T-Mobile earlier this year. The Federal Communications Commission previously approved Grain’s purchase, noting the spectrum covers “approximately 100 percent of the U.S. population.”
SpaceX said the low-band spectrum addresses a key technical gap, enabling Starlink Mobile to provide coverage indoors and through obstacles, as most existing devices already support the underused band. The deal complements SpaceX’s prior $17 billion purchase of 65 MHz of mid-band spectrum from EchoStar, approved by the FCC in May 2026. The agency also authorized SpaceX this week to launch 15,000 satellites for an upgraded mobile service.
The announcement sent shares of AT&T, Verizon, and T-Mobile US plunging by double digits on Friday, erasing over $50 billion in combined market value. AT&T fell 9.8%, Verizon dropped 8.7%, and T-Mobile US declined 13.3%, marking their worst single-day performances in years. European telecoms also fell, with Telefónica down 4.6%, Deutsche Telekom off 8%, Vodafone 4.9%, and Orange 2.5%.
SpaceX founder Elon Musk called the spectrum acquisition “the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America” in a post on X. The company stated that Starlink Mobile will combine satellite and terrestrial networks to connect devices seamlessly once FCC approval is finalized. The Rural Wireless Association has opposed similar spectrum deals, arguing they disadvantage rural providers.
