SpaceX Buys Nationwide Low-Band Spectrum From Grain Management, Sending Telecom Stocks Down and Tower Shares Up
SpaceX agreed to buy a nationwide block of low-band spectrum from Grain Management for its Starlink Mobile ambitions. AT&T, Verizon and T-Mobile fell sharply Friday while American Tower, Crown Castle and SBA Communications rallied.
SpaceX has bought a nationwide block of low-band spectrum from Grain Management, a move the company said would help its Starlink Mobile service become a major U.S. mobile carrier, according to Barron’s. The deal rattled the wireless industry on Friday: shares of the established carriers fell sharply while cell tower companies rallied.
According to Barron’s, AT&T and Verizon each fell nearly 10% and T-Mobile dropped about 13%, making the three carriers the weakest performers in the S&P 500 on Friday as investors weighed SpaceX’s push into mobile service. SpaceX shares rose about 1.3%, according to Barron’s.
Tower companies rally on the same news
Tower owners moved the other way. Barron’s reported gains of about 9.3% for American Tower, 16% for Crown Castle, and 7.3% for SBA Communications. Stocktwits reported similar strength earlier in the day, with the same three tower stocks advancing in premarket trading after the spectrum agreement was announced, and noted that analysts at Bernstein said the deal leaves open the possibility of SpaceX building out a ground-based network.
No purchase price or closing timeline for the spectrum transaction was reported by either outlet. The agreement adds a terrestrial mobile dimension to Starlink’s existing satellite connectivity business, putting SpaceX in more direct competition with the national carriers whose stocks led Friday’s declines.
Reporting based on coverage by Barron’s and Stocktwits.
