T-Mobile shares dropped as much as 10.8% during the session, while Verizon declined 7.2% and AT&T lost 7.1%. The selloff extended Thursday's after-hours losses and spread across European
T-Mobile shares dropped as much as 10.8% during the session, while Verizon declined 7.2% and AT&T lost 7.1%. The selloff extended Thursday's after-hours losses and spread across European telecom stocks.
The catalyst was SpaceX's approximately $8 billion spectrum deal, which could eventually allow Elon Musk's company to compete for mobile subscribers rather than simply provide satellite coverage to existing carriers.
Why Are Telecom Stocks Falling Today?In an official announcement, SpaceX revealed plans to acquire up to 14 megahertz of paired nationwide spectrum in the 800 MHz band.
The agreement with Grain Management would allow Starlink Mobile to combine satellite connectivity with conventional ground-based wireless infrastructure.
Low-band frequencies are particularly valuable because they travel long distances and penetrate buildings more effectively than higher-frequency signals.
That could help Starlink overcome limitations that have historically prevented satellite services from replacing traditional mobile networks.
Investors initially reacted to the Starlink spectrum deal with declines of roughly 7% across the major U.S. carriers. Friday's deeper selling suggests concerns have intensified.
<iframe src=”https://widgets.coincodex.com/w/8b77c9ba-3a76-40b7-9399-01ef0b73c141?site=coinpaper&mode=light” width=”100%” height=”628” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>Why T-Mobile Faces a Particularly Complicated ThreatT-Mobile already partners with Starlink to provide satellite connectivity in areas without conventional cellular coverage.
However, SpaceX's expansion into terrestrial wireless services could eventually turn that relationship into direct competition.
Starlink's rapidly expanding connectivity business generated approximately $4.3 billion in quarterly revenue, demonstrating its growing commercial scale.
AT&T is pursuing a competing satellite strategy through its Amazon Leo partnership, while Verizon could face similar pressure to strengthen its satellite capabilities.
The selloff also reached Europe. Deutsche Telekom shares declined approximately 7.9%, reflecting concerns that satellite-based competition could extend beyond the United States.
