T-Mobile spent five years trying to get rid of the exact spectrum Elon just called "the last critical piece" of complete phone coverage in America.
This 800 MHz block is Sprint's old Nextel spectrum, the stuff that powered push-to-talk walkie-talkie phones in 2004. The DOJ forced T-Mobile to divest it as a condition of the $26 billion Sprint merger. Dish had first rights at $3.59 billion and walked away because it couldn't raise the money. T-Mobile finally offloaded it to an investment firm called Grain Management last year for $2.9 billion plus a spectrum swap.
Grain's original plan was selling it to utilities for private networks.
Fourteen months later, SpaceX buys the whole portfolio, and shares of the carriers who passed on it fall as much as 8% in a single afternoon.
Here's why it matters so much. Starlink's satellite signal at 2 GHz can reach your phone outdoors, but it dies at the first wall. 800 MHz penetrates buildings. Most phones already have the band built in. So satellites handle the open sky, this low-band layer handles indoors, and suddenly Starlink Mobile covers everywhere a normal carrier does without the tower network.
Stack the moves. $17 billion for EchoStar's 50 MHz of 2 GHz spectrum. FCC approval for 15,000 Gen2 satellites this week. Now the low-band coverage layer.
Verizon, AT&T, and T-Mobile paid $81 billion in a single auction for C-band spectrum in 2021, then spent years and tens of billions more deploying it on towers. SpaceX assembled a nationwide carrier out of a distressed-asset sale, a forced divestiture castoff, and rockets it already owns.
The walkie-talkie spectrum from 2004 ended up being the piece that lets satellites replace cell towers. Nobody who touched it for twenty years saw that coming.
When King Richard III's remains were found, he was found under a parking lot and beneath the reserved parking space marked ‘R’
Richard III died on August 22, 1485, at the Battle of Bosworth Field from severe head trauma, likely caused by halberds or swords during a brutal, close-quarters attack.
Forensic analysis of his skeleton revealed 11 injuries, including two fatal blows to the skull, suggesting he lost his helmet and was attacked while surrounded.
Interesting historical photos: https://t.co/FRrL4hIDpN
This is another example of how vertical integration is a superpower.
That they have internal use for the compute (and a strong balance sheet) allows SpaceXsi to take a more aggressive contracting stance on its IaaS business and ultimately command massively premium pricing relative to other compute providers relying solely on the rental market to make them whole on their capex.
JPM FICC: "If inflation goes unanchored, then you should assume the debasement trade grows louder (i.e. sell america, buy gold resumes). If you don’t think inflation grows unanchored, then real rates are heading lower—buy gold. Gold here is also just a flyer on growth. If data center development stalls for political reasons or other, then this is a call option. A lot of ways to win..."
El Banco Mundial admite que la drástica reducción del crimen en El Salvador de Bukele dispara el crecimiento económico y la inversión en el país
https://t.co/aYvlFAYCb0