Shares of major U.S. telecommunications providers tumbled on Friday following SpaceX’s announcement that it has agreed to acquire a nationwide portfolio of wireless spectrum. The deal, aimed at extending SpaceX’s Starlink internet service into mobile connectivity, sent Verizon, AT&T, and T-Mobile stocks into steep declines.
Verizon was on track for its sharpest single-day drop since 2002, with shares falling approximately 9.42%. AT&T and T-Mobile also suffered significant losses, down roughly 10% and 13.35%, respectively, representing their worst days since 2000 and 2013. In contrast, SpaceX’s stock rose slightly, gaining about 0.78%.
Under the terms of the agreement, SpaceX will purchase up to 14 megahertz of paired spectrum in the 800 MHz band from Grain Management. The Federal Communications Commission, which must approve the transaction, signaled a welcoming stance toward the competition.
FCC Chair Brendan Carr told CNBC that increased competition in the spectrum market is “really good news for American consumers.” Carr noted that the agency expects to bring more than $100 billion worth of spectrum to market over the next two years, fostering an environment where companies are forced to innovate and compete aggressively.
“There’s going to be moves in the market. People are going to try to out-compete, out-innovate, and I think that’s great,” Carr said. “It’s not for us ultimately to pick winners and losers.”
Wall Street analysts offered mixed perspectives on the immediate impact. Evercore ISI stated that the acquisition gives SpaceX “the outline of a real network” alongside its existing satellite infrastructure, while J.P. Morgan described the long-term opportunity for Starlink Mobile as “more credible.” However, both firms cautioned that near-term risks to incumbent wireless carriers remain limited due to the substantial time, infrastructure, and capital required to build a competitive terrestrial network.
Did anyone actually read the fine print? J.P. Morgan says near-term risks are limited. The panic feels premature to me.
SpaceX building a real terrestrial network alongside satellites? That changes everything. Traditional carriers better wake up.
Verizon down nearly 10% on a single announcement seems extreme. I wonder if the market is overreacting to long-term risks here.
Finally, some real competition in telecom! Consumers have been getting ripped off for years. This is overdue.