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The move sees the company inch towards direct competition with the US’s largest terrestrial mobile network operators
Today, the Federal Communication Commission (FCC) has accepted the validity of SpaceX’s proposed acquisition of 800MHz spectrum from Grain Management, opening the files for public comment and bringing Elon Musk one step closer to operating as a fully-fledged mobile carrier.
SpaceX agreed to purchase 800 MHz spectrum portfolio from Grain back in October. The deal, valued at roughly $8 billion according to estimates, covers 546 paired spectrum licenses that cover roughly 100% of the US population.
The FCC’s acceptance of the deal is not its approval – the regulator will await comments and petitions to deny on December 1, and direct opposition to the deal on December 8, before making its final decision. Nonetheless, quick acceptance at this stage is a positive sign for the deal, suggesting no glaring procedural issues to the proposal.
In the same notice, the FCC also clarified that the deal would see SpaceX also inherit Grain’s deployment obligations connected to the spectrum. This means either meeting LTE coverage targets via a terrestrial network by 2029 and 2034, or – as will be the case for Starlink – using a satellite network to meet benchmarks for quality, uplink throughput and spectral efficiency by 2029, 2031, and 2036.
Use of the 800MHz band could be transformative for Starlink’s direct-to-device (D2D) offering. Compared with its existing 2GHz mid-band spectrum, the lower-frequency allocation offers improved propagation characteristics, including better diffraction around obstacles and potentially stronger penetration into buildings. This could help Starlink extend coverage beyond line-of-sight outdoor connections and improve the prospects for indoor connectivity.
Actual performance will, however, depend on satellite power, antenna characteristics, and the available link budget.
The deal also fits into a broader push by SpaceX to establish itself as a more substantial player in the mobile infrastructure market. The company recently struck a multi-year agreement with Qualcomm, aimed at delivering a nationwide 5G network using the chipmaker’s Dragonwing Cellular Infrastructure platform.
SpaceX’s owner Elon Musk has even floated the possibility of acquiring a legacy telecommunications operator directly, arguing that SpaceX could use an incumbent’s spectrum “ten times more efficiently”.
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