SpaceX is moving closer to operating as a major U.S. wireless carrier after announcing an 800MHz spectrum acquisition and receiving key FCC approvals for its Starlink Mobile satellite network. The company says the combined system will connect compatible devices indoors, outdoors and in areas without conventional cellular coverage.

The developments would expand SpaceX beyond its current role supporting satellite connectivity for T-Mobile. The company is pursuing a network that combines satellite and terrestrial spectrum rather than relying only on partnerships with existing carriers.

SpaceX targets low-band and mid-band coverage

SpaceX is acquiring a portfolio of low-band licenses in the 800MHz range. The company describes the purchase as addressing one of the remaining technical gaps in its effort to compete with established U.S. carriers. Most smartphones already support the 800MHz band, according to SpaceX.

The low-band spectrum is intended to help Starlink signals travel through obstacles such as walls. SpaceX also plans to use 2GHz mid-band spectrum, which it says will provide greater capacity for high-bandwidth service in the United States.

The company still needs final FCC approval for the spectrum purchase. Once that approval is secured, SpaceX says it will combine the licenses with an “advanced terrestrial deployment” and its satellite network.

FCC approves Starlink Mobile satellite expansion

The FCC has approved SpaceX’s application for a Starlink Mobile Gen2 constellation. The decision allows the company to launch up to 15,000 satellites optimized for 2GHz spectrum around the world.

SpaceX says the new Starlink Mobile satellites will provide more than 100 times the bandwidth of its current-generation satellites. The company has also received a waiver allowing it to offer wireless service through its satellites without a spectrum-leasing agreement with a terrestrial carrier.

SpaceX says its objective is a single network that can provide reliable service across cellular dead zones as well as ordinary indoor and outdoor locations. The approach could reduce the handoff between satellite and terrestrial connectivity for users, although the company’s broader carrier rollout remains dependent on regulatory approvals and network deployment.

SpaceX faces established carrier competition

SpaceX already powers T-Mobile’s satellite feature, but T-Mobile removed SpaceX branding from its website after finalizing a joint satellite venture with AT&T and Verizon.

The Starlink Mobile announcement also affected the stock market. Shares of AT&T, Verizon and T-Mobile fell after the news, with Verizon recording its largest one-day decline since 2002, according to NBC News. The reaction underscores how SpaceX’s satellite strategy is increasingly being viewed as a potential challenge to the major U.S. wireless operators.