Shares of wireless carriers fell after hours Thursday after SpaceX (SPCX) announced it had reached a deal to acquire a national portfolio of low-band spectrum licenses.
Verizon (VZ) stock fell nearly 7%, AT&T (T) stock fell nearly 8%, and T-Mobile (TMUS) stock fell 7% as the announcement fueled fears that Starlink would disrupt the wireless telecommunications space.
SpaceX shares gained 3% in extended trading.
46.35 +0.58 (+1.27%)
Closing: October 8 at 4:00:02 p.m. EDT
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SpaceX purchased a spectrum portfolio of up to 14 megahertz of coupled spectrum in the 800 MHz band from Grain Management LLC, an investment firm specializing in digital infrastructure. The companies did not disclose the amount of the transaction, which is subject to FCC approval.
SpaceX said in a statement that once it receives FCC approval, it intends to connect its Starlink satellite-to-mobile constellation in space to an advanced terrestrial network. The company said this new low-band spectrum will allow the network to reach customer devices through walls and buildings, with the aim of creating full coverage, even in dead zones.
“This is the final critical piece of the spectrum puzzle that SpaceX needs to provide comprehensive phone coverage in America,” SpaceX CEO Elon Musk said on X.
The move marks an escalation of the company’s ambitions in consumer telecommunications – something it hasn’t exactly kept secret.
During the company’s August earnings call, SpaceX COO Gwynne Shotwell said Starlink plans to build a terrestrial wireless network and going after customers of Verizon, AT&T and T-Mobile. She said SpaceX also plans to launch its second generation of Starlink Mobile satellites in 2027.
“I expect we’ll be able to acquire a good number of their customers (AT&T, Verizon and T-Mobile) because I think our service will be better,” Shotwell said during the earnings conference call.
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