SpaceX spectrum deal hits AT&T, Verizon, T-Mobile shares — SkimNews
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- SpaceX announced Thursday an agreement to purchase up to 14 megahertz of paired spectrum in the 800 MHz band from digital infrastructure firm Grain Management, subject to FCC approval, to support its Starlink Mobile service.
- AT&T, Verizon, and T-Mobile shares all fell in extended trading as investors reacted to a potential new competitor in the US wireless market.
- The deal lands a week after T-Mobile, AT&T, and Verizon formed a joint venture for satellite and direct-to-device coverage in underserved areas — notably without Starlink — and after T-Mobile removed Starlink mentions from its T-Satellite promotions.
- Elon Musk called it "a very big deal" in a post on X, while TMF Associates analyst Tim Farrar cautioned the spectrum is still limited and SpaceX would need ground towers for reliable building penetration in urban areas.
- The FCC plans to vote Oct. 29 on proposals to make 482 MHz of additional spectrum available for supplemental coverage from space and to modernize direct-to-device rules — moves the agency said could also benefit Amazon's competing satellite service.
- SpaceX, now valued above $2 trillion following its June IPO, generated $1.66 billion in operating income on $4.29 billion in Starlink revenue last quarter, with Deutsche Bank estimating 13.5 million global Starlink subscribers by end of September, including 4.1 million in the US.
Why it matters: SpaceX's spectrum purchase gives Starlink a foundation to compete as a standalone mobile carrier rather than a satellite partner to the incumbents. The $2 trillion company's Starlink unit — which generated $1.66 billion in operating income last quarter — is now the cash engine funding that expansion, while major telcos' exclusion of Starlink from their new joint venture suggests they're preparing to fight rather than partner.
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