U.S., European telecom stocks slide as SpaceX spectrum deal rattles sector — SkimNews
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- SpaceX agreed to acquire Grain Management's nationwide 800 MHz spectrum portfolio in a deal worth approximately US$8 billion, with the low-band airwaves able to travel longer distances and penetrate buildings more effectively than higher-frequency signals
- T-Mobile US slid 9.1% to its lowest level in over 33 months, while AT&T dropped 7.4% and Verizon fell 5.9% — making all three the biggest percentage decliners on the S&P 500 in early trading
- European telecom operators also tumbled, with Deutsche Telekom falling 7.1%, Telefonica sliding 3.3% and Orange losing 1.8%, while Airtel Africa, Vodafone and BT Group dropped between 1.7% and 4.3% on London's FTSE 100
- The pan-continental STOXX 600 Telecommunications index dropped over 2.4% to its lowest level since January 30
- Telecom tower operators bucked the selloff, with American Tower, Crown Castle and SBA Communications advancing between 7.6% and 12.6% as Morgan Stanley called the deal "incrementally constructive" for terrestrial infrastructure demand
- SpaceX shares rose 2.2% on the announcement, which remains subject to regulatory approval
- Evercore ISI analyst Kutgun Maral said the deal "weakens" carrier defenses against low-band spectrum claims, placing SpaceX in a stronger negotiating position
Why it matters: The $8 billion spectrum grab gives SpaceX's Starlink Mobile a direct path to challenge T-Mobile, AT&T and Verizon on the coverage and indoor reliability that anchor their consumer business. Incumbent carriers were punished sharply — T-Mobile alone shed 9.1% in a session — while SpaceX gained 2.2% and tower operators rallied on the view that even a satellite-centric network still needs terrestrial infrastructure.
Ask SkimNews
