$8 billion in SpaceX transactions hit telecom stocks: AT, Verizon and T-Mobile fall by 7%
Coinpaper
1h ago
Ai Focus
In the after-hours trading on Thursday, AT &T's stock price fell by about 7.5%, Verizon fell by 7%, and T-Mobile fell by 6.7%. There are concerns in the market that SpaceX's latest spectrum transactions will enhance Starlink's mobile communication capabilities, which may intensify competition with traditional operators.
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In the after-hours trading on Thursday, AT &T's stock price fell by about 7.5%, Verizon fell by 7%, and T-Mobile fell by 6.7%. These declines wiped out a total market value of several billion dollars, prompting investors to re-evaluate the competitive prospects of the industry.

The agreement announced by Grain Management covers 800 MHz spectrum combinations across the United States. SpaceX intends to combine satellite connections with terrestrial wireless infrastructure, which could enable Starlink to compete directly with existing mobile operators.

Why the $8 billion deal SpaceX has caused panic among telecom investors

This acquisition allows SpaceX to obtain up to 14 megahertz of paired low-frequency spectrum. Low-frequency signals are particularly valuable because they can travel longer distances and are also more capable of penetrating buildings than high-frequency signals.

This solves a major limitation of satellite mobile coverage: maintaining a stable connection indoors and in densely populated areas.

SpaceX plans to combine these spectra with next-generation satellites and ground infrastructure to provide more comprehensive mobile services.

The competitive implications go beyond mere network coverage. Starlink has already collaborated with T-Mobile to extend connectivity to remote areas, but SpaceX is increasingly positioning itself as a potential competitor, rather than just a partner in infrastructure development.

At the same time, AT &T is also advancing its satellite strategy through cooperation with Amazon Leo, indicating that traditional operators are preparing for satellite competition.

Telecom stocks fell, but communication tower companies rose.

Market reactions show a significant divergence.

While the stock prices of wireless operators are falling, infrastructure companies including American Tower, Crown Castle, and SBA Communications have seen increases of about 5% to 6% in pre-market trading.

Investors seem to believe that SpaceX may ultimately become another major customer for terrestrial communication infrastructure, thereby bringing new leasing opportunities.

This means that the competitive threat is more complex than simply "replacing communication towers with satellites."

The wireless ambitions of SpaceX extend beyond this transaction.

The latest acquisition follows the $17 billion spectrum agreement previously reached between SpaceX and EchoStar, demonstrating its investment scale in the field of mobile connectivity.

These ambitions also coincide with SpaceX's broader expansion efforts, as the company is raising capital through multiple infrastructure businesses.

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