SpaceX's spectrum deal still leaves it far from rivaling telecom giants
TMUS•SpaceX agreed to buy Grain's nationwide 800 MHz spectrum portfolio for about $8 billion, but building a terrestrial network to compete with major U.S. carriers could cost more than $80 billion and take years.
1. Spectrum purchase
SpaceX called its purchase of Grain's 800 MHz spectrum licenses a critical step toward high-speed mobile service through Starlink Mobile. The portfolio includes up to 14 MHz of paired spectrum and requires FCC approval.
2. Network costs
A terrestrial network would require infrastructure such as antennas on towers and rooftops, as well as customer service, handset subsidies and promotions. TD Cowen estimates a nationwide network would cost more than $80 billion. Analyst Julie Zhu said it was hard to imagine the work being completed within a decade.
3. Hybrid approach
SpaceX plans to combine satellite-to-mobile connections with terrestrial infrastructure. Its existing partnership with T-Mobile uses T-Mobile's network alongside Starlink satellite connectivity, while analysts said SpaceX appears to be pursuing a more independent network build. T-Mobile and Verizon executives said spectrum alone would not match the capacity and performance of established networks.
