SpaceX acquiring more spectrum for Starlink Mobile, but that's not the most important win

SpaceX just got its hands on more spectrum.

spacex Tristar spectrum
It has also been relieved of the standard terrestrial buildout obligation. | Image by Starlink
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SpaceX is scooping up more spectrum licenses, this time from Tristar. SpaceX could use the licenses to build a 5G network, strengthen its direct-to-device (D2D) network, or do both.

More airwaves


According to an FCC filing, SpaceX is acquiring three unpaired AWS-3 licenses from Tristar. They are only for uplink transmission. Tristar has been unable to put the licenses to good use and doesn't expect to meet the FCC's renewal requirements.

The licenses operate in the 1695–1710 MHz band and cover eight states, encompassing 4% of the US population. The purchase brings SpaceX's total spectrum holdings in these areas to 75 MHz.

The FCC has relieved SpaceX of terrestrial construction requirements for these licenses because the company intends to use the spectrum for its D2D network. That doesn't mean the FCC is completely letting SpaceX off the hook, as uplink and spectral efficiency targets are still in place.

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A relief


In July, the FCC declined SpaceX's request to count satellite coverage toward upper C-band buildout obligations. Having the requirements waived for the new licenses is a major win for the company, which aims to launch a hybrid carrier that might rely more on satellites than land-based infrastructure.

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Building up its holdings


The 15 MHz of spectrum complements the airwaves purchased from EchoStar, creating a more continuous uplink footprint.

Earlier this year, the company bought 40 MHz of AWS-4, 10 MHz of AWS-H Block, and 15 MHz of unpaired AWS-3 spectrum from EchoStar (Band 70), as well as two licenses during the AWS-3 auction. Earlier this month, it announced it was purchasing up to 14 MHz of low-band spectrum in the 800 MHz band from Grain Management.

The remaining AWS-3 licenses are held by Blue Ridge Wireless and Terrestar.

Perspectives


TMT analyst Walter Piecyk doesn't consider this a notable development, noting that the licenses merely fill gaps in the coverage of the spectrum from EchoStar. Furthermore, as Ookla industry analyst Mike Dano noted back in August when SpaceX applied for the licenses, routine spectrum transactions are standard practice for mobile operators.


However, since SpaceX is on a quest to cobble together a mobile network to challenge AT&T, T-Mobile, and Verizon, the purchase cannot be downplayed entirely. 


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