Key facts
- SpaceX acquired nationwide rights to low-frequency airwaves (800 MHz).
- The deal aims to enable Starlink Mobile to become a major US mobile carrier.
- T-Mobile and AT&T shares fell 10% on the news.
- Verizon shares dropped 7%.
- Deutsche Telekom and Telefónica shares also declined in European trading.
SpaceX's stock surged as much as 4% following an announcement that the company has secured nationwide rights to a block of low-frequency airwaves, a move described by Elon Musk as a "very big deal." This acquisition is intended to fill a key technical gap, enabling Starlink Mobile to become a major US mobile carrier by integrating satellite and ground technology. The expansion of Starlink's network to more US users sent shares of major telecom companies tumbling.
Major US telecom stocks experienced significant intraday declines, with T-Mobile and AT&T each falling 10%, and Verizon dropping 7%. In European trading, Deutsche Telekom, the majority owner of T-Mobile, was down 8%, while Spain's Telefónica fell 4%.
Wall Street analysts view the transaction as a significant step for SpaceX in its ambition to dominate satellite connectivity and build "the world's most advanced mobile network." Morgan Stanley analyst Sean Diffley noted that the acquisition of up to 14 MHz of low-band spectrum (800 MHz) will enhance Starlink's network capabilities beyond filling dead zones with direct-to-device service.
Gene Munster, a managing partner at Deepwater Asset Management, expressed strong bullishness on SpaceX, predicting that its telecom ambitions could eventually lead it to compete with companies like Apple and Samsung. Munster suggested that a vertically integrated handset operating on a Starlink mobile network could offer unique features and more affordable service.