FCC approves T-Mobile spectrum swap, setting strict direct-to-device deadlines
The FCC has approved an spectrum swap between T-Mobile and Grain Management, involving 800 MHz and 600 MHz bands. Grain must now navigate a satellite partner selection process by late 2026 to satisfy FCC direct-to-device buildout requirements.
Key Takeaways
- T-Mobile receives $2.9 billion in cash and 10 MHz of 600 MHz spectrum covering 15% of the U.S. population.
- Grain Management acquires 800 MHz licenses covering nearly 100% of the U.S. population with an eight-year final buildout deadline.
- Grain must initiate a neutral satellite partner selection process by Aug. 7, 2026, and submit full applications by Dec. 4, 2026.
- The FCC set a long-term performance target for 2036 requiring 90% service uptime and 10 dB SINR signal quality.
Why It Matters
This deal clears T-Mobile’s remaining Sprint-era regulatory weight while securing critical low-band capacity for its 5G network. For the satellite industry, the FCC’s move converts the 800 MHz band into a competitive battleground for direct-to-device (D2D) supremacy. While AST SpaceMobile is a logical candidate given its existing 800 MHz technical compatibility, the mandated neutral selection process keeps the door open for rivals to contest the band. The strict performance milestones signal that the FCC is moving past tests toward enforceable commercial service quality standards. Watch for Grain’s November 5 partner announcement as a definitive signal for which satellite operator will dominate this high-value low-band spectrum.
Additional Context
The FCC’s emphasis on strict buildout terms for the 800 MHz band follows a broader regulatory push to accelerate supplemental coverage from space (SCS). In May 2026, the commission released a performance-based framework to replace legacy power limits, potentially increasing satellite data capacity sevenfold (per SatNews, May 2026). This shift aligns with T-Mobile’s concurrent efforts to expand its D2D footprint via its existing partnership with SpaceX. In January 2026, the FCC authorized SpaceX to launch an additional 7,500 Gen2 Starlink satellites specifically designed for direct-to-cell services, bringing their total approved fleet to 15,000 (per Telecoms.com, January 2026).
AST SpaceMobile has significantly scaled its technical readiness ahead of the Grain Management selection process. In June 2026, the company successfully launched three BlueBird satellites, part of an aggressive 2026 deployment plan targeting approximately 45 units in orbit to achieve intermittent nationwide service (per TeckNexus, November 2025). ASTS has already demonstrated download speeds of 98 Mbps using its Block 1 satellites and claims its upcoming Block 2 hardware will support full 5G broadband connectivity (per Communications Daily, July 2026). Combined with T-Mobile’s ongoing integration of 5G-Advanced features like uplink carrier aggregation, the industry is moving rapidly toward a 'Standardized Sky' where consumer handsets switch between terrestrial and orbital signals without specialized hardware.
Read full article at ts2.tech
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