FCC action in favor of SpaceX could have Verizon, T-Mobile, and AT&T execs sweating over price war

SpaceX is taking its satellite network and, combined with a terrestrial 5G buildout using the Starlink Mobile name, plans to compete with Verizon, T-Mobile, and AT&T as a wireless carrier in 2028.

SpaceX entered into an agreement last month to purchase all of Grain Management's 800 MHz low-band spectrum. These airwaves, which can travel long distances and easily penetrate walls and trees, are perfect for a nationwide 5G network.

Grain Management acquired the 14 MHz of 800 MHz spectrum from T-Mobile

Grain Management had acquired the spectrum from T-Mobile, as the latter received it as part of its $26 billion acquisition of Sprint in 2020. The airwaves were supposed to be sold to EchoStar, but the latter's financial difficulties made that impossible, and Grain Management ended up with the spectrum.

Earlier this week, the FCC accepted the application completed by SpaceX to buy the 800 MHz spectrum, which is a major step taken by the regulatory agency that could eventually lead to Starlink becoming a major player in wireless.

The application approved by the FCC covers 546 paired spectrum licenses that could be used to blanket 100% of the US population with Starlink Mobile service. It adds up to 14 MHz of spectrum that will provide wireless service in all 50 states, Washington, D.C., Puerto Rico, and the U.S. Virgin Islands

FCC is requesting comments from the public

The FCC will welcome comments from the public, which are due on December 1. Opposition comments are due December 8, and the transaction still requires FCC approval. Comments can be filed via the internet at https://www.fcc.gov/ecfs/.

Qualcomm is also helping SpaceX, as the latter will employ the chip designer's Dragonwing cellular infrastructure to help deliver Starlink Mobile Service to wireless customers.
In my opinion, the FCC will probably approve the 800 MHz spectrum purchase. But Verizon, T-Mobile, and AT&T have another battle to fight, as the trio is trying to convince the FCC to block SpaceX from acquiring the key mid-band spectrum that plays an important role in the dissemination of 5G service in the US.

The 800 MHz spectrum purchase includes frequencies in the 817–824 MHz and 862–869 MHz ranges.

Why Verizon, T-Mobile, and AT&T are so nervous about the competition

Verizon, T-Mobile, and AT&T are afraid of the competition because they believe it will lead to lower prices. That is exactly what Econ-101 says when too much supply is chased by the same amount of demand.

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