SpaceX spectrum deal knocks US telecom shares; T-Mobile and AT&T fall more than 6%
SpaceX rose 3.7% in premarket trading after agreeing to buy a nationwide low-band spectrum portfolio, while T-Mobile US and AT&T fell over 6% and Verizon 5.3%, Reuters reported.
US telecom stocks came under heavy pressure on Friday, 9 October, after SpaceX struck a deal to acquire a nationwide low-band wireless spectrum portfolio, Reuters reported.
Reuters described the deal as a direct, satellite-based challenge to the legacy wireless carriers across the United States. In premarket trading SpaceX gained 3.7%, while T-Mobile US and AT&T dropped more than 6% and Verizon fell 5.3%.
Low-band spectrum travels long distances and penetrates buildings well, which makes it valuable for nationwide coverage. Investors read the purchase as a sign that SpaceX’s satellite service could compete more directly with mobile operators. Reuters did not report the price of the deal in the section we reviewed; we will update when details are confirmed.
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