From The Next Web · Ana-Maria Stanciuc · · 1m 20s
SpaceX's $8B spectrum deal shakes telecom stocks
SpaceX's purchase of US mobile spectrum sent AT&T, Verizon and T-Mobile shares tumbling, exposing how vulnerable telecom stocks are to new competition.
In brief
SpaceX's purchase of US mobile spectrum sent AT&T, Verizon and T-Mobile shares tumbling, exposing how vulnerable telecom stocks are to new competition. SpaceX agreed to buy eight billion dollars of US mobile spectrum, triggering sharp falls in major telecom stocks and raising questions about their competitive…
SpaceX buys eight billion dollars of US spectrum
SpaceX agreed on October ninth to buy nationwide low-band eight hundred megahertz spectrum from investment firm Grain Management for eight billion dollars in cash, pending FCC approval.
Telecom stocks plunge on the news
T-Mobile closed down thirteen point three percent, AT&T down nine point eight percent and Verizon down eight point eight percent. It was Verizon's worst day since two thousand two.
Why the spectrum matters to SpaceX
The low-band eight hundred megahertz band carries indoors and most phones support it, closing SpaceX's remaining technical gap. SpaceX had already paid seventeen billion dollars for EchoStar licences.
Analysts see sentiment, not fundamentals
John Conca of Third Bridge told Bloomberg that SpaceX still needs expensive ground infrastructure in dense markets, suggesting the sell-off reflects sentiment rather than fundamental business risk.
“SpaceX still needs expensive ground infrastructure in dense markets”
Europe faces the same choice in May twenty twenty-seven
The Commission proposed in May that Europe's two gigahertz mobile satellite band be split in three, with two-thirds reserved for European-controlled operators and sovereign use. Current licences expire May twenty twenty-seven.
The headline
SpaceX agreed to buy eight billion dollars of US mobile spectrum, triggering sharp falls in major telecom stocks and raising questions about their competitive position.
