SpaceX Is Crashing the Wireless Party. Telecom Stocks Are Paying the Price. -- Barrons.com

Dow Jones2026/10/08 21:53

By Al Root SpaceX announced a wireless spectrum acquisition late Thursday, stoking fears of wireless telecom disruption and sending shares of AT&T and its peers lower. The agreement, with Grain Management, would give SpaceX a nationwide low-band spectrum license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band. "This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the U.S.," said the company in a news release. That's competition for the traditional industry. AT&T stock was down 7% in after-hours trading. Verizon Communications and T-Mobile shares were both off about 6.6%. Shares of wireless infrastructure provider Crown Castle and American Tower, however, were up almost 9% and 6%, respectively. It appears that SpaceX needs terrestrial infrastructure, too. "Starlink Mobile's flexible, hybrid architecture will leverage both terrestrial and satellite technology to ensure all Americans have high-speed mobile broadband," reads part of the agreement. Grain Management has historical relationships with wireless tower providers. The deal is significant for the wireless industry. SpaceX isn't content to only offer broadband service. It appears to want to control the phone, too. Spectrum assets are becoming more valuable as space-based communications options proliferate. Spectrum is a finite resource. Just as two radio stations in an area can't broadcast on the same frequency, wireless data providers need their own spectrum to avoid running into one another. Comcast stock was down 1.9% in after-hours trading. Cable companies also offer wireless service, partly to offset losses in their broadband business to wireless companies that offer internet to the home. The wireless industry is changing -- with SpaceX at the heart of the disruption. Write to Al Root at allen.root@barrons.com. This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow

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