SpaceX announced on Thursday a plan to acquire a nationwide spectrum portfolio from Grain Management to expand its Starlink mobile service within the U.S. telecommunications market. This acquisition, pending Federal Communications Commission (FCC) approval, includes up to 14 megahertz of paired spectrum in the 800 MHz band. The low-band spectrum will address key technical challenges, enabling Starlink Mobile to compete more effectively as a major carrier. The announcement caused shares of AT&T, Verizon, and T-Mobile to drop sharply in after-hours trading.

The deal comes amid growing competition and shifting strategies among U.S. telecom operators. Last week, AT&T, Verizon, and T-Mobile announced a joint venture aimed at expanding satellite and direct-to-device coverage in underserved areas, conspicuously excluding SpaceX’s Starlink. Major providers appear increasingly wary of Starlink, especially as T-Mobile has recently removed references to Starlink in its satellite partnerships. Industry experts see SpaceX’s spectrum acquisition as escalating a battle with traditional mobile carriers, although its limited spectrum means further infrastructure, like ground towers, will be needed for broad urban coverage.

This move aligns with recent FCC proposals that could open additional satellite-friendly spectrum for direct-to-device services, with a key vote scheduled for later this month. SpaceX, valued at over $2 trillion following a record IPO in June 2026, already operates the largest satellite communications network, with Starlink covering 205 countries and boasting approximately 13.5 million subscribers globally. Starlink generated $1.66 billion in operating income on $4.29 billion in revenue during the second quarter, making it SpaceX’s most profitable segment, while other divisions such as rocket launches and cloud computing remain unprofitable as the company shifts focus toward Starship rockets and orbital data centers.

SpaceX shares rallied modestly after initially falling during regular trading hours. The company has yet to provide a timeline for launching new services if the acquisition clears regulatory hurdles. Industry observers note that combining satellite and terrestrial coverage through this spectrum could transform Starlink’s service offerings, potentially redefining competition in U.S. wireless markets. Meanwhile, SpaceX continues to innovate aggressively in space and telecommunications, positioning itself as a disruptive force challenging entrenched mobile carriers.