SpaceX has moved to purchase nationwide wireless spectrum. This purchase would allow Elon Musk’s Starlink Mobile service to join in competition with major telecom companies, including Verizon, AT&T and T-Mobile, Reuters reported.

On Oct. 8, after SpaceX agreed to acquire the wireless spectrum from Grain Management, the shares of AT&T, Verizon and T-Mobile fell roughly 9% to 13%, according to CNBC.

The purchase is contingent on approval from the Federal Communications Commission, which oversees wireless communications across the United States. For telecom companies, wireless spectrum refers to the system of radio frequencies that allows communication through phones within cellular networks.

In terms of the spectrum, SpaceX plans to utilize lower frequences in the 800 MHz band, which are more efficient at traveling further distances. More precisely, the lower frequencies would be able to better traverse through buildings, assisting Starlink’s goal of strengthening coverage in remote locations where internet access may be limited.

In terms of engineering, Starlink is satellite-based, with the SpaceX satellites connecting to ground equipment, such as Starlink dishes.

Traditional internet infrastructure such as cell towers or cables would not be required to provide internet in the remote areas.

Grain Management Chief Executive David Grain mentioned, according to Reuters, that the agreement had a possibility of changing how Americans connect. For regular customers, it could potentially create additional options in choosing a phone provider based on location, improving internet access in remote areas with weaker cellular signals.

Although acquiring wireless spectrum is a major step, it doesn’t automatically make SpaceX a major phone carrier.

This is due to the multitude of steps in becoming a successful nationwide service, including the ability to support millions of customers, substantial investment and technical proficiency.

Correspondingly, T-Mobile executives emphasized that the path ahead won’t be easy. Chief Technology Officer John Saw indicated that the wireless industry has invested more than $250 billion in network infrastructure since 2018, according to TheStreet.

Saw wrote that there is “a big difference between owning spectrum and delivering a great mobile experience.”

As of writing, Starlink Mobile hasn’t established a set nationwide price for service, and the company’s affordability and portability remain unknown.

Currently, Starlink is able to generate revenue through satellite internet operations, but that doesn’t provide a clear indication of profitability or compliance. FCC Chair Brendan Carr said that the deal could bring “more investment, more opportunities for a range of providers.”