AT&T, Verizon, and T Mobile stocks decline after the announcement of a major agreement for ‘Starlink Mobile’
Stocks of the three leading U.S. mobile providers dropped in pre-market trading on Friday morning after SpaceX—led by Elon Musk—revealed a deal to obtain nationwide low-band spectrum. Which it asserts will “clear the path” for introducing its “Starlink Mobile” service.
SpaceX disclosed that it has reached an agreement to obtain nationwide low-band wireless spectrum from the investment firm Grain Management. But the transaction still needs to be approved by the Federal Communications Commission (FCC).
The 800 MHz spectrum will enable SpaceX’s Starlink Mobile to provide wider mobile coverage—especially indoors—tackling what the company calls “one of the major remaining technical gaps” in its strategy to introduce cellular services.
In contrast to the higher-frequency spectrum currently utilized by Starlink, the 800 MHz low-band spectrum offers enhanced range and can more efficiently penetrate walls or structures.
SpaceX’s statement highlights that most existing devices are already suited for the 800 MHz band. Enabling customers to access Starlink Mobile without having to purchase a new phone.
Recent iPhone versions additionally support the 800 MHz band, but it’s uncertain if they will be compatible with Starlink Mobile upon release.
The financial details of the agreement were not revealed by the two companies. However, The Wall Street Journal mentioned that SpaceX consented to pay Grain Management $8 billion in cash for the spectrum.
Shares of the three major U.S. mobile carriers saw a sharp drop in pre-market trading this Friday morning following the announcement. AT&T shares fell 6.6% to $23, while Verizon shares dropped 7.23% to $43. T-Mobile stock declined 6.79%, settling at $159.70.
Meanwhile, after falling 4.19% on Thursday, SpaceX shares rose 3.6% to $166.40 in early trading.
