Shares of major US mobile service providers plunged in Friday’s trading session after Elon Musk’s SpaceX announced an acquisition of low-band spectrum that could help its Starlink satellite service expand into a major mobile carrier in the US.
AT&T Inc. shares fell 11% to $21.96, while T-Mobile US Inc. and Verizon Communications Inc. also declined 11% each on Wall Street.
SpaceX announced that the newly acquired spectrum would help it expand its satellite-to-cellular services and compete more directly with traditional wireless carriers. In a post on X on Thursday, Musk said the low-band spectrum was the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage across America.
The spectrum was acquired from investment firm Grain Management LLC. It will allow SpaceX to provide cellular connectivity that can penetrate walls and deliver service to devices indoors, according to a post on the company’s website. SpaceX also said the spectrum is supported by most mobile devices currently in use.
The financial terms of the agreement were not publicly disclosed by SpaceX or Grain Management. Grain had acquired the airwaves from T-Mobile earlier this year.