EL7.AI
StocksMediumUpdated×3•Originally published 8 October 2026•Updated 9 October 2026•
4 min read

SpaceX agrees to buy spectrum for about $8 billion as telecom stocks fall

Key Facts

1The Wall Street Journal said SpaceX would pay about $8 billion in cash for the assets.
2The agreement covers 100% of Grain's nationwide portfolio in the 800 MHz band and is subject to Federal Communications Commission approval.
3Shares of T-Mobile, Verizon and AT&T fell about 6% in extended trading following the announcement.
4The planned purchase totals up to 14 MHz of spectrum in the 800 MHz band.

Grain Management announced on October 8, 2026 a definitive agreement to sell its nationwide telecommunications spectrum portfolio to SpaceX, supporting the expansion of Starlink's mobile phone services. The Wall Street Journal, citing people familiar with the matter, said SpaceX would pay about $8 billion in cash for the assets. The agreement includes the acquisition of 100% of Grain's portfolio in the 800 MHz band, according to Reuters. Completion remains subject to Federal Communications Commission approval and customary closing conditions. Grain and SpaceX declined to comment to the newspaper on the deal's value.

The spectrum SpaceX plans to buy totals up to 14 MHz, according to Ars Technica, with the amount varying across areas covered by the portfolio. The company says adding low-band spectrum will help Starlink Mobile reach users inside buildings. The website quoted the company as saying the signal "penetrates obstacles, such as walls," the capability it is targeting with this addition to its spectrum resources. Starlink Mobile already owns global mid-band spectrum at 2 GHz, according to Reuters. That spectrum provides high connectivity capacity, while the planned low-band purchase aims to improve signal penetration indoors.

The portfolio covered by the new sale agreement had been transferred to Grain from T-Mobile, which announced the completion of the transfer on August 11, 2026. T-Mobile said at the time that it had received $2.9 billion in cash as part of the consideration. The consideration also included all of Grain's licenses in the 600 MHz band, in addition to the cash payment. Grain's agreement with SpaceX was preceded by another deal announced by EchoStar in September 2025 to sell spectrum licenses to the company. EchoStar's original agreement was valued at about $17 billion, according to its announcement, as part of SpaceX's moves to acquire spectrum resources for connectivity services.

On potential services, William Blair analysts expect SpaceX to offer a package combining Starlink internet and Starlink Mobile service, according to Reuters. Among established telecommunications operators, AT&T, T-Mobile and Verizon announced a joint venture to expand satellite coverage in unserved areas. The companies said in a statement published by Verizon that the venture would work to "pool limited spectrum resources" for that purpose. The operators said their existing agreements with satellite companies would remain in effect despite the formation of the joint venture. They added that the partners could continue connectivity efforts independently alongside their cooperation to expand coverage.

In markets, Reuters reported that shares of T-Mobile, Verizon and AT&T fell about 6% in extended trading following the agreement's announcement on October 8. MarketWatch, meanwhile, reported gains in shares of tower companies Crown Castle, American Tower and SBA Communications that evening. Pressure on mobile operators extended into the October 9 session, according to a separate Reuters update published the day after the announcement. T-Mobile US shares fell 13.2% during that session as competitive pressure persisted following the deal. The stock hit its lowest level in more than 33 months, according to the news agency.

After securing final Federal Communications Commission approval, Starlink Mobile plans to integrate its direct-to-cell satellite constellation with advanced terrestrial infrastructure, according to Investing.com. The company aims to combine the two components in a single network as part of its plan to provide mobile phone services. For the next earnings release by one of the affected operators, Verizon has scheduled its third-quarter results for Monday, October 26, 2026. On the broader regulatory front, the Federal Communications Commission plans to vote on October 29 on moving forward with a new spectrum auction, according to Reuters. The auction aims to support direct-to-device connectivity services as part of the commission's efforts to make spectrum available for those services.