SpaceX Will Enter The Mobile Communications Market

Elon Musk's company is purchasing a portfolio of radio frequencies.

The American aerospace company SpaceX, owned by billionaire Elon Musk, has reached an agreement with the investment firm Grain Management to purchase a large block of spectrum, with the intention of entering the mobile communications market. The company announced this on Thursday, October 8, noting that this will expand the capabilities of the Starlink satellite network, according to DW.

Currently, Starlink provides high-speed internet access via satellites; however, receiving the signal requires a special terminal with an antenna and a clear line of sight to the satellite. The acquired licenses in the 800 MHz band will allow the signal to be transmitted to standard devices, including smartphones, and will also provide connectivity inside buildings.

The value of the agreement has not been officially disclosed. According to The Wall Street Journal, it may be around $8 billion. The deal still needs to be approved by the U.S. Federal Communications Commission (FCC).

Following SpaceX’s announcement regarding the purchase of spectrum, shares of the largest telecommunications operators fell sharply. In pre-market trading in the U.S., shares of T-Mobile US, Verizon, and AT&T dropped by between 5.5% and 7.4%. In Europe, Deutsche Telekom shares fell 6.5%, Vodafone shares fell 4.1%, Orange shares fell 2.3%, and Telefonica shares fell 3.9%. At the same time, SpaceX shares rose by about 4%.

Elon Musk stated that thanks to the deal, the company will be able to provide connectivity across the entire United States, including regions where mobile internet is currently unavailable.

According to analysts at investment bank Morgan Stanley, SpaceX’s competition with traditional carriers is likely to develop gradually and will primarily affect rural and sparsely populated areas, where mobile coverage remains limited.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail [email protected]