Carriers push back as SpaceX eyes US mobile

AT&T (T), Verizon (VZ) and T-Mobile (TMUS) have united to oppose parts of a pending Federal Communications Commission proposal that would expand spectrum for satellite-to-phone services used by providers such as SpaceX’s Starlink Mobile. The proposal, scheduled for an Oct. 29 vote, would make 482 MHz of additional airwaves available for so‑called supplemental coverage from space, where satellites connect directly to standard mobile phones.

The carriers’ trade group CTIA filed a regulatory letter following Oct. 20 meetings with FCC officials, warning that the Commission’s buildout decisions have “real consequences” for consumers who depend on growing wireless capacity. The companies are asking regulators to remove key portions of the spectrum plan and to preserve their control over how satellite providers access licensed airwaves.

AT&T and T-Mobile are pressing the FCC to strip the 2.5 GHz and 3.45 GHz bands from the satellite proposal, a change that would remove 290 MHz from the 482 MHz under consideration. T-Mobile uses the 2.5 GHz band and AT&T operates in the 3.45 GHz band, both in time division duplexing systems that share the same frequencies for sending and receiving data.

CTIA argues that adding secondary satellite operations into these 5G “workhorse” bands presents unresolved synchronization and interference risks. It says more than 300 million users rely on these frequencies for existing wireless services and warns that technically unworkable changes could compromise that service quality.

The carriers are also asking the FCC to reaffirm the exclusivity and protection of their ground‑based cellular licenses as it revises satellite‑to‑phone rules. They want to retain the right to approve and terminate spectrum‑leasing arrangements, at a time when current rules require satellite companies to lease spectrum from a carrier but the new proposal would loosen those conditions.

While the big three carriers push back at the FCC, SpaceX is advancing its plan to turn Starlink Mobile into a major U.S. carrier. On an Oct. 20 earnings call, President Gwynne Shotwell said a recent spectrum purchase and regulatory approval for the company’s next satellites would pave the way for Starlink Mobile to operate on its own airwaves, with U.S. service targeted for early 2028.

Starlink Mobile already has more than 22 million monthly users worldwide through partner carriers, and SpaceX plans to pair its satellites with ground‑based radios by leveraging existing Starlink installations and other towers. The company is also seeking access to at least 80,000 U.S. cell sites as it works toward becoming the country’s fourth nationwide carrier.

SpaceX has accumulated about 80 MHz of spectrum for its carrier ambitions, while each of the three major U.S. carriers controls about 300 MHz. On Oct. 21, the FCC approved SpaceX’s purchase of three Tristar licenses in the 1,695‑1,710 MHz band covering parts of eight states, waiving the usual requirement to build land‑based networks on those frequencies.

The regulatory and competitive developments have been accompanied by notable stock moves. On Oct. 23, shares of AT&T and T-Mobile each fell nearly 8% after Bloomberg reported SpaceX is in talks to access at least 80,000 U.S. cell sites, while Verizon slipped about 1.2%.

Earlier in the month, on Oct. 9, AT&T, Verizon and T-Mobile also saw steep single‑day declines following the announcement of a SpaceX spectrum deal. The carriers have responded strategically, including a collaborative venture announced in May to pool spectrum and strengthen their positions in the emerging satellite connectivity market.