If SpaceX (SPCX) CEO Elon Musk wants to put pressure on wireless carriers – and even Apple (AAPL) and Samsung (005930.KS) – he would develop a phone that runs specifically on Starlink.
“Elon says he doesn’t want to make a phone,” famous tech analyst Gene Munster wrote in a new
Musk’s SpaceX has just sent a strong message to the wireless industry: it’s coming for its share of the subscriber pie.
On Thursday evening, SpaceX announced that it would acquire a national portfolio of low-band spectrum. This allows Musk’s satellite company, Starlink, to challenge older wireless giants in the United States.
Shares of AT&T (T), T-Mobile (TMUS) and Verizon (VZ) were down in pre-market trading Friday following the news. SpaceX shares rose 4%.
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Concerns had already been growing on Wall Street that Starlink could disrupt traditional wireless carriers like AT&T, Verizon and T-Mobile by moving from a rural broadband service to a direct mobile competitor.
Following its strategic acquisition of Earth’s spectrum and rapid deployment of advanced satellites, SpaceX had laid the groundwork for launching its own autonomous cellular network alongside its direct-to-cell transmission capabilities.
It now appears that all systems are up and running for SpaceX.
“We believe the addition of low-band spectrum makes Starlink a more credible mobile operator given the ability of lower-band spectrum to penetrate buildings,” said Brandon Nispel, an analyst at KeyBanc.
Brian Sozzi is the editor-in-chief of Yahoo Finance, host of the Sozzi unleashed morning show, the ‘Powerful actors with Brian Sozzi podcast and member of the Yahoo Finance editorial leadership team. Follow Sozzi on @BrianSozzi, InstagramAnd LinkedIn. Any advice on stories? Email brian.sozzi@yahoofinance.com.
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