SpaceX, the company controlled by Elon Musk, has agreed to acquire terrestrial frequency licences in the 800 MHz band for $8 billion, in a transaction designed to enable Starlink Mobile’s entry into the North American mobile telephony market.

The deal with Grain Management, a prominent US private equity firm, provides for the transfer of up to 14 megahertz of radio spectrum and is pending approval from the Federal Communications Commission (FCC), the country’s telecommunications regulator.

The acquisition will allow the company to combine the Starlink satellite network with terrestrial infrastructure, with the aim of improving mobile coverage — particularly inside buildings and in areas where conventional signals face propagation difficulties.

SpaceX currently provides broadband internet services via satellite under the Starlink brand. By incorporating the 800 MHz frequencies, the company intends to strengthen signal transmission capacity and develop a hybrid network capable of delivering voice and data services directly to compatible smartphones.

According to information published by Exame magazine, the strategy involves integrating satellites from the Gen2 constellation with terrestrial infrastructure to create a seamless mobile connectivity network across the United States.

The announcement triggered immediate reactions in financial markets, with shares in the major US carriers falling in pre-market trading ahead of the Wall Street open. Verizon dropped more than 7.7%, T-Mobile fell 7.6%, and AT&T lost 6.9%, reflecting investor concern over the arrival of a powerful new competitor in the sector.

In a post on the social network X, Elon Musk described the project as something that “is going to seem completely insane”, according to the same publication.

SpaceX’s entry into the mobile telephony market now hinges on regulatory clearance from the FCC, which is expected to assess the spectrum licence transfer before any commercial operations can begin.