Satellite Companies Eyeing $6 Billion Spectrum for Direct-to-Cell Services
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Satellite Companies Eyeing $6 Billion Spectrum for Direct-to-Cell Services
- SpaceX and AST SpaceMobile are reportedly interested in acquiring 800 MHz spectrum licenses, valued at approximately $6 billion, which are crucial for offering wireless phone services directly from satellites to unmodified mobile phones.
- This spectrum became available after Grain Management LLC completed its acquisition of T-Mobile's nationwide 800 MHz spectrum portfolio on August 11, 2026.
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SpaceX and AST SpaceMobile are among the companies reportedly looking to acquire a significant portion of 800 MHz band spectrum held by Grain Management LLC. This spectrum is highly valued for its potential to enable direct-to-device (D2D) wireless phone services from space. The 800 MHz licenses, covering nearly the entire U.S. population, are considered essential for satellite providers to establish ground-based links for voice services.
Grain Management finalized its acquisition of T-Mobile’s nationwide 800 MHz spectrum portfolio on August 11, 2026. This acquisition positions Grain Management as the owner of one of the largest privately held portfolios of low-band spectrum in the U.S. The 800 MHz Band 26 spectrum, with approximately 14 MHz of blended spectrum depth nationwide, is particularly well-suited for direct-to-device satellite services due to its propagation characteristics, which allow signals to travel farther and penetrate buildings more effectively than higher-frequency airwaves.
The Federal Communications Commission (FCC) has expressed a desire to promote the growth of next-generation satellite-based telecommunications networks to fill gaps in land-based coverage and maintain U.S. leadership in space-based communications. Grain Management plans to lease or sell this spectrum, and the FCC has indicated it wants the bidding process completed by November 5. Grain Management has requested preliminary offers from interested parties by the first week of September.
Both SpaceX and AST SpaceMobile have been actively developing direct-to-cell capabilities. AST SpaceMobile received temporary authority from the FCC in mid-August 2026 to test its satellite-to-smartphone connectivity solution using specific 800 MHz frequencies. AST SpaceMobile aims to provide broadband directly to standard smartphones without modifications and has partnerships with major carriers like AT&T and Verizon. SpaceX, through its Starlink division, has also been expanding its direct-to-cell services, having launched its first direct-to-cell satellites in January 2024 and commencing beta testing for SMS with T-Mobile in late 2024.