Telecom stocks tumble on SpaceX spectrum acquisition news
Telecom stocks experienced a significant drop in after-hours trading on Thursday following SpaceX's announcement of a definitive agreement to acquire a nationwide 800 MHz spectrum portfolio from Grain Management. The acquisition enables SpaceX's Starlink Mobile to deploy a hybrid satellite-and-terrestrial network, potentially challenging traditional wireless providers.
Following the news, AT&T Inc. dropped 6.75%, T-Mobile US fell 5.4%, and Verizon Communications declined 5%. The deal provides Starlink Mobile with a critical frequency range that can penetrate physical obstacles, ensuring service continuity in various environments. Once FCC approval is granted, Starlink Mobile aims to become the first network operator to combine satellite-to-mobile technology with advanced terrestrial infrastructure.
This acquisition follows a recent FCC approval for Starlink Mobile's Gen2 constellation, authorizing the launch of 15,000 advanced satellites operating in the 2 GHz spectrum. SpaceX claims these satellites will provide over 100 times the bandwidth of the current generation.
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Also reported by 2 other outlets
- SpaceX to acquire spectrum that enables Starlink Mobile services channelnewsasia.com
- SpaceX to acquire spectrum that enables Starlink Mobile services investing.com
