SpaceX (SPCX) and AST SpaceMobile (ASTS) are reportedly interested in acquiring wireless spectrum licenses owned by Grain Management LLC, intensifying competition in the growing space-based communications market. According to Bloomberg, the spectrum licenses, valued at about $6 billion, cover the 800 MHz band and could be used to provide wireless phone services directly from satellites.

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The licenses became available after Grain completed a spectrum swap with T-Mobile (TMUS) earlier this month. The Federal Communications Commission (FCC) approved the transaction and requires Grain to seek bids for the spectrum, which it described as underutilized. The bidding process is expected to conclude by November 5.

SpaceX Eyes Grain for Starlink Expansion

If SpaceX were to pursue the spectrum, the opportunity could strengthen its Starlink satellite communications business and expand its presence in the telecom market. Starlink is already SpaceX's largest revenue generator and its only profitable business.

However, SpaceX CEO Elon Musk pushed back on the report, responding "not true" to a social media post about the company's interest in the spectrum.

SPCX stock fell 4.1% on Thursday, dropping below its $135 IPO price as 319 million shares became eligible for trading in the company's second lock-up expiration.

Separately, SpaceX announced yesterday that it had won $8 billion in Golden Dome contracts, representing at least one-third of the program's total budget, for military satellites and launches.

ASTS Targets Grain to Expand DTD Network

AST SpaceMobile could use the spectrum to expand its direct-to-device satellite network. The company's business is focused on connecting ordinary smartphones directly to satellites, making additional spectrum important as it expands network capacity and coverage.

The company is also planning a 400,000-square-foot Midland facility, nearly five times the size of its original plant, to accelerate BlueBird satellite production. The expansion could help ASTS scale its network faster and meet growing demand from telecom partners, potentially supporting its long-term revenue growth.

SPCX vs. ASTS: Which Space Stock Does Wall Street Prefer?

SpaceX and AST SpaceMobile offer different opportunities to investors. SpaceX has the advantage of Starlink's established scale and revenue base, while AST SpaceMobile offers more direct exposure to the emerging direct-to-smartphone satellite market. The spectrum bidding could become an important development for both companies, but investors will need to watch for further confirmation and details on the bidding process.

The TipRanks Stock Comparison Tool shows that both SPCX and ASTS have earned a Moderate Buy consensus rating from Wall Street, suggesting a cautiously optimistic view on the shares. SpaceX's average price target implies 73.4% upside potential, while the stock is down 13.2% since its June IPO. ASTS' average price target implies 31.9% upside, while the stock is down 8.5% year-to-date.