ASTS already has FCC approval to test the same frequencies with up to 100 commercially available phones near Midland and Lanham through Sept.12.

  • Grain Management has requested preliminary offers by the first week of September for the 800 MHz licenses it recently acquired from T-Mobile.
  • The licenses span 3,224 counties and cover nearly the entire U.S., making them valuable for satellite voice, rural coverage and direct links to ordinary smartphones.
  • For SpaceX, the spectrum could expand Starlink’s voice and rural reach alongside its PCS and upcoming mid-band holdings.

Shares of AST SpaceMobile (ASTS) climbed 1% overnight late Thursday as the company and SpaceX (SPCX) reportedly emerged as potential bidders for prized low-band spectrum covering nearly the entire U.S. population.

On Thursday, ASTS fell 2%, while SPCX slid 4% amid a 319 million-share unlock and delayed expectations for another Starship catch. SPCX also recovered to trade nearly flat overnight. 

ASTS, SpaceX Eye $6B Spectrum 

Grain Management has asked interested parties to submit preliminary offers by the first week of September for the 800 MHz licenses it recently acquired from T-Mobile, Bloomberg reported, citing people familiar with the discussions. Grain is reportedly seeking about $6 billion, although it could lease the spectrum rather than sell it. Other bidders may also emerge.

The portfolio includes 817-824 MHz uplink and 862-869 MHz downlink frequencies spanning 3,224 counties. Low-band airwaves travel farther and penetrate buildings better than higher frequencies, making them valuable for satellite voice, rural coverage and direct connections to ordinary smartphones.

The Federal Communications Commission (FCC) called the licenses a “valuable source of paired, broadband-ready, low-band spectrum” that had been underutilized last month. 

T-Mobile inherited the portfolio through its Sprint acquisition but never deployed it. The carrier transferred the licenses to Grain last week in exchange for $2.9 billion and Grain’s 600 MHz holdings covering 212 counties.

AST Gets An Early 800 MHz Test

AST may already have a technical head start. The FCC last week granted it a 30-day authorization to test direct-to-device service on the same frequencies using up to 100 commercially available phones. The controlled, noncommercial tests are permitted through Sept.12 near Midland, Texas, and Lanham, Maryland. AST said they would demonstrate broadband satellite coverage “without harmful interference.”

The grant does not provide commercial spectrum rights or indicate that AST will win Grain’s process. However, it allows the company to demonstrate compatibility while Grain evaluates prospective partners. The frequencies also sit alongside low-band spectrum supplied to AST by partners including AT&T, Verizon and FirstNet, potentially creating broader or more contiguous capacity for its BlueBird satellite network.

SpaceX Eyes A Low-Band Starlink Boost

For SpaceX, the portfolio could add a wide-coverage layer to Starlink’s direct-to-cell strategy. Its U.S. service currently uses T-Mobile’s PCS spectrum, while its planned EchoStar spectrum purchases would add substantial mid-band capacity.

The 800 MHz licenses could complement those holdings by supporting voice and broad rural coverage, with mid-band spectrum handling higher-capacity services. The FCC has required Grain to conduct a transparent competitive solicitation for satellite partners and complete it by Nov.5. Complete direct-to-device applications are expected as early as Dec 4, limiting Grain’s ability to leave the spectrum unused. Mobile carriers, utilities and infrastructure providers may also participate.

How Do Retail Traders Feel About ASTS And SPCX?

On Stocktwits, retail sentiment was ‘bearish’ for ASTS and ‘neutral’ for SPCX, while message volume was ‘low’ for both tickers. 

Over the past year, ASTS shares have climbed 44%, while SPCX stock has fallen 17%.

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