Elon Musk’s SpaceX is making moves to acquire more AWS-3 midband spectrum for Starlink’s mobile satellite direct-to-device (D2D) service and getting closer to nationwide coverage in the US.
In a recent FCC filing, SpaceX subsidiary Starlink Spectrum Holdings requested permission to transfer control of three unpaired AWS-3 licences in the 1695MHz–1710MHz band that are held by Tristar License Group (TLG).
The license transfer request is part of a proposed transaction between the two companies described as “a membership interest purchase agreement,” in which Starlink will acquire all “outstanding membership interests” in TLG. After the transaction, TLG will become a subsidiary of Starlink and an indirect subsidiary of SpaceX.
The deal, if approved, would augment the spectrum rights SpaceX acquired from EchoStar and fill in some of the last remaining gaps for a national footprint in this band.
The Tristar licenses cover about 4% of the US population across eight states. Each license has bandwidth of 5MHz and is designated only for supplemental uplink use (i.e., from device to the network). This specialized band is typically paired with downlink spectrum (i.e., from network to device).
The three AWS-3 licenses would give SpaceX almost total nationwide coverage in this band when added to the AWS-3 licenses it gained from EchoStar and what it acquired in the latest FCC auction in June.
“These are the kinds of routine spectrum transactions that network operators conduct as they refine their networks. Obviously, it’s noteworthy given SpaceX’s ambition to become a new mobile network operator,” said Mike Dano, lead industry analyst at Ookla.
Musk’s mobile ground game
SpaceX intends to use the frequencies to support its planned mobile satellite constellation to connect smartphones from space. The new licenses could also help the terrestrial part of the company’s mobile plan, revealed last month, which is to build out a network of rooftop small cells to compete directly with US carriers.
SpaceX acquired EchoStar’s AWS-4, H-block and AWS-3 licenses (collectively known as Band 70) for $19.6 billion in cash and stock, giving it 65MHz of spectrum. The Tristar acquisition would take its holding to 75MHz.
According to Brian Goemmer, president of Spektrum Metrics, EchoStar’s Dish Wireless had planned to use all of the 40MHz of AWS-4 spectrum as downlink with the AWS-3 spectrum as uplink channels of 5MHz and 10MHz.
After the EchoStar transaction, SpaceX has those AWS-4 frequencies and controls almost all of the AWS-3 licenses. “I speculate that spectrum might fit around their rooftop picocell strategy. [That is,] 40MHz downlink and 15MHz uplink for user traffic,” said Goemmer.
The remaining handful of AWS-3 licenses are controlled by Blue Ridge Wireless and Terrestar. If SpaceX wants to complete its national footprint in this band, it will need these licenses too. “Obviously, future deals will involve Blue Ridge and Terrestar,” said Goemmer.
Tim Farrar, principal at TMF Associates, said SpaceX “might look at different spectrum like EchoStar’s CBRS band” for the “femtocell plan” and that the expectation is for Band 70 “to be used with the V2 satellites,” referring to the next-generation mobile satellite constellation that is planned to start launching next year.
“SpaceX clearly would like to acquire the rest of the unpaired uplink blocks to complete its coverage in Band 70, where this can be achieved at a reasonable price,” he said, adding that Tristar paid about $6 million for the three licenses.
Requests for relief
According to a separate FCC filing, Tristar is not using the three licenses to provide services. It had planned to use the licenses to support EchoStar’s Dish 5G network, but that became unworkable after the spectrum sale to SpaceX.
SpaceX is also requesting regulatory relief for before and after the transaction. It is asking for the licenses to be renewed and the build requirements extended to July 2027, so that the rights do not expire before the FCC decides on the control transfer.
Further, the company seeks a permanent waiver of terrestrial coverage requirements that would be dependent on “rigorous satellite service obligations” as set out in the FCC’s decision on the EchoStar-SpaceX deal.
SpaceX also noted in the filing that a separate FCC application requesting non-terrestrial use of unpaired AWS-3 spectrum for its satellite D2D service is pending.
The SpaceX-Tristar application is under review since the FCC accepted the filing in mid-July. The comment period is open with oppositions and replies due by the end of this month and September 10, respectively.
