SpaceX announced an agreement on Thursday to “acquire a nationwide low-band spectrum license portfolio” that will establish the foundation to help the company become a “major mobile carrier” in the United States.

“With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to high-speed mobile broadband no matter where they are,” the company stated.

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Shares of AT&T, Verizon and T-Mobile tumbled in extended trading.

The deal involves the acquisition of a spectrum portfolio from Grain Management, which specializes in digital infrastructure, and is subject to approval by the Federal Communications Commission. SpaceX said in a statement that it’s a “license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band.”

“This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US,” SpaceX said.

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“Very big deal,” Elon Musk commented.

“This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America,” Musk said in another post.

“The incumbent wireless carriers have been vocal in expressing skepticism that SpaceX’s network ​will be able to match the quality of their networks,” William Blair analysts said, according to Reuters.

“We expect SpaceX to offer a very compelling Starlink broadband ‌and Starlink ⁠Mobile bundle. The company may also include Grok in the package,” it added.

Reuters shared further:

“We are going to see more investment, more opportunities for a range of providers, and ​America leading the world in ​next-gen technologies — to the ⁠benefit of consumers all across the country,” FCC Chair Brendan Carr said in response to the deal between SpaceX and Grain.

Grain CEO David Grain said the deal has “the potential to change where ​and how Americans connect.”

Most existing mobile handsets support the 800 MHz frequency band, eliminating the need ​for consumers to ⁠purchase proprietary satellite phones.

Verizon spokesman Rich Young noted there were still hurdles after SpaceX’s spectrum purchase. “This company can have tons of spectrum available, but if they do not have the network to use it, it doesn’t matter. It’s just empty airwaves,” Young said.

The ⁠FCC also ​approved Starlink Mobile’s Gen2 constellation application this week, authorizing SpaceX to launch ​15,000 satellites that are optimized for 2 GHz spectrum globally.

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