SpaceX Expands Starlink Mobile Plans With Spectrum Deal

SpaceX is moving to expand Starlink into mobile services in the United States through a spectrum acquisition announced Thursday, while analysts examine whether the satellite network can challenge established carriers and smartphone makers.

According to Yahoo Finance, SpaceX agreed to acquire Grain Management's nationwide 800 MHz spectrum portfolio, which the company said will help Starlink provide mobile signals in more locations.

SpaceX said the low-band spectrum is intended to improve signal penetration through walls and obstacles, supporting service indoors, outdoors, and in cellular dead zones.

Gene Munster, Managing Partner at Deepwater Asset Management, said he expects SpaceX to eventually consider a vertically integrated phone strategy.

"Elon says he doesn't want to make a phone. I still think SPCX eventually will," said Gene Munster, Deepwater Asset Management Managing Partner.

Munster said a Starlink-connected handset could create a different competitive model for the mobile industry.

"A vertically integrated handset on a Starlink mobile network could deliver features carriers can't match, and cheaper service," said Gene Munster, Deepwater Asset Management Managing Partner.

Munster also said Samsung could face greater pressure than Apple because Apple's ecosystem links devices and services more tightly.

"Device and services tie-in is harder to break," said Gene Munster, Deepwater Asset Management Managing Partner.

According to Yahoo Finance, Statcounter data showed Apple held 30.8% of the global mobile market in September, compared with 23.52% for Samsung.

Elon Musk has previously said SpaceX does not currently want to build a phone, but he has left open the possibility of a future device.

"The idea of making a phone makes me want to die. But if we have to make a phone, we will. But we will aspire not to make a phone," said Elon Musk, SpaceX CEO.

Musk said any future phone would differ from existing smartphones and focus on artificial intelligence capabilities.

"A very different device than current phones," said Elon Musk, SpaceX CEO.

Seeking Alpha published an analysis arguing that Starlink's mobile plans face technical, economic, and regulatory challenges, particularly in urban environments.