SpaceX vs. Telecoms: FCC To Review C-Band Use In High-Stakes Fight Over 5G and Satellites

The Federal Communications Commission (FCC) is preparing to initiate a formal review process for new uses of the upper C-band spectrum (3.98-4.2 GHz), potentially igniting a high-stakes battle between SpaceX and major U.S. wireless carriers. The move, announced by FCC Chairman Brendan Carr on Feb. 5, will be part of the commission’s first open meeting under his leadership on Feb. 27.

The upcoming notice of inquiry (NOI) would explore the feasibility of “more intensive use” of these frequencies, mirroring a previous FCC decision to reallocate lower C-band spectrum (3.7-3.98 GHz) for 5G networks—a shift that brought in over $80 billion from wireless giants like Verizon, AT&T, and T-Mobile.

That decision also resulted in $9 billion in relocation payments to satellite operators SES and Intelsat, who were required to shift their operations to the upper portion of the band, now under scrutiny.

A Battle for the Airwaves

The latest move has already drawn sharp reactions from key industry players, each with distinct stakes in how the spectrum is repurposed.

The Cellular Telecommunications and Internet Association (CTIA), a lobbying group representing Verizon, AT&T, and T-Mobile, strongly supports reassigning the band to terrestrial wireless services. The group argues that this move is necessary to maintain U.S. leadership in 5G expansion, enhance connectivity, and drive economic growth.

“Making Upper C-band available for 5G services is crucial to strengthening America’s wireless networks, driving innovation, creating jobs, and securing our economic competitiveness,” - CTIA Statement.

Despite this push from the wireless industry, analysts caution that the FCC has not yet explicitly committed to reallocating the spectrum for terrestrial commercial use.

SpaceX Proposes a Different Vision

One of the loudest voices opposing a traditional reallocation is SpaceX, which has been expanding its Starlink satellite broadband network and developing direct-to-smartphone connectivity.

Just days before the FCC’s announcement, SpaceX urged regulators to consider a flexible approach, allowing multiple operators—including satellite companies—to share access to the band.

“To be clear, SpaceX does not oppose the merger between SES and Intelsat, nor is it suggesting they have spectrum taken away...Rather, SpaceX is proposing the Commission modernize the 200 MHz of the upper C-band…by sharing the band across multiple operators in addition to the merged entity that already controls more than 90% of the band.” - SpaceX Letter To FCC

SpaceX argues that enabling coexistence between satellite and terrestrial operators would be a crucial step toward 6G, a next-generation technology expected to merge terrestrial and space-based networks into a seamless connectivity experience.

Technical and Regulatory Hurdles

Industry experts note that a coordinated spectrum-sharing model for the upper C-band would require significant regulatory changes and technical adaptations.

“Realigning upper C-band for MSS would likely be a yearslong effort, requiring extensive regulatory coordination and technical adjustments,” - Adam Rhodes, Octus Senior Telecom Analyst

Allocating additional Mobile Satellite Services (MSS) frequencies—such as those proposed by SpaceX—could help direct-to-smartphone satellite operators avoid future spectrum shortages. However, that repurposing upper C-band for MSS would be a complex, multi-year process requiring careful interference management.

What’s Next?

The FCC’s Feb. 27 meeting is expected to mark the first step in a lengthy review process. If the commission votes in favor of the notice of inquiry, it will open the door for industry stakeholders to submit proposals on how best to use the 3.98-4.2 GHz band.

A final decision is likely months or even years away, but the debate underscores a growing struggle over how to manage the limited spectrum resources critical for both next-generation wireless networks and emerging satellite services.