(AFP Photo)
Elon Musk's SpaceX has announced that it had agreed to buy nationwide low-band spectrum for a mobile phone service.
SpaceX said it had agreed to buy a nationwide set of wireless airwaves that will help its Starlink Mobile service reach phones inside homes and offices, a longstanding weak spot for satellite connections, which
struggle to get through walls.
The company said the purchase closes one of the last obstacles stopping Starlink Mobile from becoming a full-fledged U.S. carrier. Most phones already on the market can use the new frequencies, it added.
SpaceX plans to combine its satellites with cell towers on the ground, offering a single network that works indoors, outdoors and in rural dead zones.
T-Mobile shares fell as much as 7.6 percent in extended trading, while Verizon dropped 7 percent and AT&T lost 7.75 percent on Oct. 8 after the announcement.
The selloff is the latest in a string of losses for carriers each time SpaceX has signaled its mobile ambitions.
Separately, SpaceX said U.S. regulators this week approved its plan to launch up to 15,000 new satellites designed to connect directly to ordinary smartphones, which it said would offer more than 100 times the capacity of its current fleet.
Starlink now offers limited texting and data to phones in areas without cell coverage through a partnership with T-Mobile.
Analysts caution that breaking into the crowded US wireless market is difficult, noting the big three carriers control far more airwaves than SpaceX.
