Telecommunications stocks fall as SpaceX acquires spectrum to expand Starlink Mobile
Major telecommunications stocks dropped sharply after SpaceX announced an agreement to purchase an 800 MHz spectrum portfolio to expand its Starlink service into mobile network coverage.
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Telecommunications shares fell sharply on Friday after Elon Musk's SpaceX announced an agreement to acquire a nationwide spectrum portfolio from Grain Management. CNBC Tech and MarketWatch reported that SpaceX aims to expand its Starlink internet business deeper into mobile services. [1][2]
SpaceX stated in a Thursday announcement that the transaction includes a license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band, according to CNBC Tech. MarketWatch also reported that the deal is designed to bolster the mobile ambitions of SpaceX and is lifting cell tower stocks. [1][2]
The market reacted strongly to the announcement. CNBC Tech reported that Verizon shares closed down 8.75 percent, marking its worst single day since July 2002. T-Mobile shares dropped 13.27 percent and AT&T fell 9.81 percent, which CNBC Tech noted were their worst single-day drops since 2013 and 2000, respectively. MarketWatch and NBC News similarly reported that telecommunications stocks suffered their worst daily declines in over a decade. [1][3][5]
The move represents a major competitive threat to established mobile carriers as SpaceX moves beyond satellite internet into direct cellular service. CNBC Tech reported that Federal Communications Commission Chair Brendan Carr heads the agency overseeing regulatory approvals for such spectrum transfers. [1][3]
In short
- SpaceX agreed to acquire an 800 MHz spectrum portfolio of up to 14 megahertz from Grain Management.
- Verizon shares dropped 8.75 percent on Friday, recorded as its worst trading day since July 2002.
- T-Mobile and AT&T shares fell 13.27 percent and 9.81 percent, respectively.
- SpaceX plans to use the acquired spectrum portfolio to expand Starlink into mobile network service.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]Verizon posts worst day since 2002 as SpaceX U.S. network plans whack cell provider stocksCNBC Tech, 6h ago (the report this story comes from)
- [2]SpaceX’s Starlink Mobile plans are pressuring AT&T and Verizon sharesMarketWatch Top Stories, 1d ago
- [3]As AT&T, Verizon and T-Mobile shares fall, Wall Street assesses the growing SpaceX threatMarketWatch Top Stories, 5h ago
- [4]Verizon posts worst day since 2002 as SpaceX U.S. network plans whack cell provider stocksCNBC, 10h ago
- [5]Elon Musk’s growing SpaceX empire sends AT&T, Verizon and T-Mobile shares plungingNBC News, 6h ago
- [6]Verizon Faces Worst Day Since 2002 as SpaceX Telecom Plans Hit StocksTOKENPOST, 10h ago
- [7]Stock Market Today, Oct. 9: Verizon Slides on SpaceX Spectrum Deal and Scotiabank Target CutThe Motley Fool, 4h ago
- [8]Verizon, AT&T And T-Mobile Shares Plunge As SpaceX Strikes Spectrum Deal To Expand Starlink MobileRTTNews, 5h ago
Background
- [9]SpaceX Starshield on Wikipedia
- [10]Yahoo on Wikipedia
Our newsroom writes these reports with the help of software, from the 10 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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