Starlink discovers the cell tower

SpaceX has announced a deal to buy nationwide US spectrum licenses covering up to 14 MHz of paired spectrum in the 800 MHz band. The company says those airwaves, combined with its Gen2 constellation, will turn Starlink Mobile into a major US wireless carrier, delivering high-speed mobile broadband wherever Americans happen to be. The deal still needs FCC approval.

Telecom investors were suitably thrilled. AT&T, Verizon and T-Mobile fell 5–6% in premarket trading, Reuters reports. Europe’s telecom index dropped roughly 3%, Deutsche Telekom 8% and Vodafone roughly 5%. Low-band US spectrum apparently has enough range to reach European share prices.

The best part of this space-age revolution is the ground network. Once regulators sign off, SpaceX plans to combine its satellite service with terrestrial infrastructure. Someone has finally figured out that Starlink satellites can go on the ground, too. At that altitude, they’re usually called base stations. A generous definition of orbit, but a very real competitive threat.

“Starlink Mobile is the only network capable of delivering terrestrial broadband, satellite service, or both” — SpaceX, FCC filing

The incumbents now face a prospective rival with its own spectrum, its own satellite constellation and plans for a ground network. That’s a bid for every subscriber and every monthly payment. A considerably nastier proposition for the established carriers than another glossy presentation about getting a signal in the middle of the ocean.

Cell-tower owners’ shares, meanwhile, rose 5–6%. They have every reason to love the space business: a potential new tenant is coming in to land. The wireless revolution can be as cosmic as it likes. The rent for mounting a box of equipment on a tower will still be collected right here on Earth.