SpaceX Just Made Cell Towers Cool Again. Verizon, AT&T, and T-Mobile Are Paying the Price
Tower owners are celebrating a potential big new tenant.
On Friday, shares of cell tower owners Crown Castle and American Tower surged, while the three largest wireless carriers - Verizon, AT&T, and T-Mobile - plummeted. The driving force behind this shift was SpaceX, which is reportedly in talks to secure at least 80,000 cell sites across the United States, aiming to become the fourth nationwide wireless carrier.
This potential move would represent about half of all the purpose-built cell towers in the U.S. The tower industry, traditionally dominated by Verizon, AT&T, and T-Mobile, has seen a significant shift with SpaceX's involvement. The company's new low-band spectrum purchase has opened up opportunities for large towers, which are a valuable asset for any wireless carrier.
However, SpaceX's entry into the market is still in the early stages, and it's expected to launch commercially in late 2027. While SpaceX could put pressure on the major carriers, the recent sell-off might be premature, as the company would need to build a network from scratch and would likely take several years to become competitive.
The market may be overreacting to a potential deal that hasn't materialized yet, causing unnecessary worry for tower owners and telecom companies.
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