The US Federal Communications Commission (FCC) has authorized SpaceX to deploy and operate 15,000 Starlink satellites equipped with Direct-to-Device technology. The regulator removed the requirement for a mandatory licensing agreement with terrestrial mobile carriers, granting the company permission to utilize its own radio frequency spectrum for the service.
Following the approval, SpaceX acquired a segment of the low-band cellular spectrum. This frequency range is designed to improve signal penetration through walls and ceilings, enabling indoor connectivity. The company views this acquisition as a critical step in transitioning Starlink Mobile into a full-scale cellular operator within the United States.
Market reaction was immediate, with shares of major US carriers experiencing significant declines. After the close of trading, T-Mobile stock dropped by over 11%, while Verizon and AT&T saw their share prices fall by approximately 6.6%. Previously, Verizon leadership had publicly dismissed low-orbit satellite constellations as a viable long-term competitive threat.
The ability to connect satellites directly to unmodified smartphones shifts Starlink from a niche service for remote areas to a direct competitor for urban and suburban cellular markets. Despite this, SpaceX still requires terrestrial infrastructure, including fiber-optic connections and sites for base stations, to establish a comprehensive urban network.
