SpaceX has struck a deal to acquire a portfolio of low-band wireless spectrum, strengthening its ambitions to expand Starlink’s mobile services.

The move has raised concerns among established telecommunications companies about competition from satellite-based connectivity.

The acquisition could help SpaceX improve its ability to connect mobile devices in areas where traditional cellular coverage is limited.

Starlink already provides satellite internet services, and the company has been working to expand its role in mobile communications.

The development has put pressure on major U.S. telecom operators, including AT&T, Verizon and T-Mobile.

Investors are assessing whether satellite services could eventually challenge parts of the traditional mobile-network business.

Telecommunications companies have spent billions of dollars building cellular networks, purchasing spectrum licences and improving coverage.

They may now face additional competition from companies that can use satellites to reach customers beyond conventional network infrastructure.

For SpaceX, the deal offers a potential route to expand its communications business.

For traditional operators, the challenge will be to protect their customer bases while continuing to invest in reliable networks and new services.

Sources: Reuters and Barron’s.