SpaceX Acquires Spectrum Portfolio to Expand Starlink Mobile Network

SpaceX announced an agreement to acquire a nationwide portfolio of 800 MHz wireless spectrum from Grain Management, aiming to address technical limits for Starlink Mobile and expand its role in U.S. wireless connectivity. The transaction was disclosed without a purchase amount and requires Federal Communications Commission approval.

According to SpaceX, the lower-band spectrum could improve signal penetration through walls and other obstacles, helping Starlink Mobile overcome a key technical challenge as the company seeks to become a major U.S. wireless carrier.

Jim Cramer, a television host and market commentator, reacted to the acquisition on X after SpaceX announced the deal.

"HUGE." wrote Jim Cramer.

Venture capitalist Chamath Palihapitiya also highlighted the significance of the transaction after the announcement, describing the acquisition as important for SpaceX's strategy.

"a very big deal." wrote Chamath Palihapitiya, Social Capital founder.

Deepwater Asset Management managing partner Gene Munster said the spectrum acquisition could eventually support a SpaceX-branded smartphone connected to Starlink's mobile network. He suggested such integration could create a different competitive position in wireless services.

"Elon says he doesn't want to make a phone. I still think [$SPCX] eventually will," wrote Gene Munster, Deepwater Asset Management managing partner.

Munster added that a vertically integrated device could compete differently with existing smartphone makers, while noting that Apple has stronger ties between devices and services.

"That's a bigger problem for Samsung than Apple. $AAPL 's device and services tie-in is harder to break," wrote Gene Munster, Deepwater Asset Management managing partner.

Following the announcement, SpaceX shares rose 2.32% to $164.30 in after-hours trading Thursday, according to Benzinga Pro. The spectrum transaction remains subject to final Federal Communications Commission approval.