A Motley Fool Hidden Gems podcast discusses SpaceX's wireless ambitions after a reported spectrum acquisition sent Verizon stock down about 10%. One host says his current service was about eight times faster than SpaceX's $55 offering, and doubts many users would accept the slower speeds and higher latency of satellite connections. The guests note the spectrum suits terrestrial networks better than satellites, that building one could cost 10 billion or more, and that mobile carriers are valued at less than two times sales. With roughly 11,000 satellites in orbit and an estimated 40,000 users per newer satellite, Starlink could theoretically serve hundreds of millions, but speed and capital expenditure remain open questions.
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SpaceX has agreed to buy 14 MHz of paired spectrum licenses in the 800 MHz band from Grain Management for a reported $8 billion; these licenses were given up by T-Mobile in its Sprint merger. The spectrum suits long-distance coverage and building penetration, but its 14 MHz is less than one-third of Verizon's low-band holdings, so the article argues SpaceX would need much more spectrum and infrastructure to compete nationwide. The three major carriers recently formed a joint venture for satellite direct-to-device coverage, and their partnerships with SpaceX and AST SpaceMobile are noted. The article says the next FCC auction, scheduled for April, could raise prices for everyone and pressure the carriers' finances.
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