Shares of major wireless carriers declined on Thursday following SpaceX’s announcement that it has entered into a definitive agreement to acquire Grain Management’s nationwide 800 MHz spectrum portfolio. The move is seen as a significant step toward transforming Starlink into a full-service mobile carrier, prompting investors to reassess the competitive landscape for AT&T, Verizon, and T-Mobile.
Under the deal, SpaceX will obtain government-issued licenses to transmit wireless data over low-band radio frequencies across designated U.S. geographic areas. Once approved by the Federal Communications Commission (FCC), Starlink Mobile plans to integrate this terrestrial spectrum with its existing satellite-to-mobile constellation. Following the news, SpaceX shares rose 2% in after-hours trading.
The financial impact on traditional operators was immediate. Verizon Communications fell nearly 6%, while both AT&T and T-Mobile US dropped more than 6%. Analysts at Bernstein noted that the acquisition underscores the strategic value of physical cellular infrastructure, particularly as Starlink prepares for its anticipated mobile launch in 2027.
“Buying spectrum is not a commitment to build a nationwide network,” wrote Bernstein analyst Madison Rezaei in a Thursday research note. “But this is the spectrum we thought SpaceX needed to make that option more credible — and less expensive.” Rezaei added that low-bandwidth spectrum requires fewer cell towers than higher-frequency bands, potentially lowering the capital expenditure needed for a nationwide rollout.
Conversely, the announcement provided a lift to cell-tower operators, whose valuations have struggled in recent years as wireless carriers reduced spending following the initial 5G buildout. Crown Castle surged 7%, American Tower climbed 5%, and SBA Communications rose 6% in extended trading. Bernstein highlighted that tower multiples are currently depressed, and the deal could serve as a catalyst for the sector.
Rezaei estimated that building out SpaceX’s network could cost between $50 billion and $130 billion, requiring between 30,000 and 120,000 tower locations. However, because local zoning, power availability, and labor constraints limit new U.S. tower construction to approximately 1,200 to 2,000 structures annually, SpaceX would likely need to lease space from existing tower companies. Bernstein concluded that American Tower, Crown Castle, and SBA are well-positioned to capture significant new rental revenue from the venture.
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