Shares of AT&T, Verizon and T-Mobile fell in after-hours trading after SpaceX agreed to acquire low-band spectrum. The deal is subject to FCC approval.
SpaceX has agreed to buy a nationwide portfolio of low-band spectrum licences in the 800 MHz band from Grain Management. The company said the portfolio includes up to 14 MHz of paired frequencies for the development of Starlink Mobile. The financial terms have not been disclosed, and the transfer of the licences requires approval from the U.S. Federal Communications Commission (FCC).
The announcement affected share prices of major U.S. carriers in post-market trading. At around 2:45 a.m. GMT, AFP reported that AT&T shares were down 6.47%, Verizon 5.46% and T-Mobile 5.99%. Reuters also reported declines of about 6% in extended trading.
SpaceX described the acquisition as an important step towards building Starlink Mobile, a service that would combine satellite and terrestrial infrastructure. The company expects low-band frequencies to improve coverage, including in places where signals have difficulty passing through buildings. The Wall Street Journal estimated the deal at about $8 billion, but the parties did not confirm that figure.
The plan has also drawn scepticism from the industry. AT&T chief executive John Stankey called SpaceX’s strategy unviable without a substantial terrestrial network. Analyst Anshel Sag of Moor Insights & Strategy also said building such infrastructure would require major investment. SpaceX cannot complete this stage of Starlink Mobile’s expansion until the FCC approves the licence transfer.