SpaceX reportedly seeks at least 80,000 US cell sites as carrier stocks slide

what happened

According to Stocktwits, which cited a Bloomberg report, SpaceX is pursuing agreements covering a minimum of 80,000 cell sites across the country as it works toward becoming a fourth nationwide mobile operator. The company is reportedly in talks with at least one large cellular infrastructure firm, and Crown Castle was also approached.

The deals could be worth billions of dollars, according to Bloomberg. SpaceX recently bought low-band spectrum that would let its Starlink satellites work as part of a mobile network, and the FCC has cleared a plan for 15,000 satellites that can serve handsets directly. On the earnings call this week, Musk said terrestrial networks would be built so connectivity is broad wherever Starlink operates, adding that the launches and spectrum would let Starlink Mobile become a major mobile carrier in the US.

In extended trading, AT&T, Verizon and T-Mobile shares dropped 4-5%, while Crown Castle gained 9% and American Tower 5%. SPCX shares rose 1.4% after hours, after closing the regular session on Thursday down 10% near $145, above the June IPO price of $135 but well below the all-time high near $226.

why it matters

The key question for investors is how seriously SpaceX can compete with incumbent carriers. Access to tower sites would speed up a rival network build-out, and the selloff in telecom stocks shows the market is already pricing in some of that risk. For tower owners, such contracts could mean a new leasing revenue stream, which helps explain the gains in CCI and AMT. Traders will also watch whether SpaceX can build its terrestrial infrastructure on schedule, since that process will take time.

market impact

US carriers AT&T, Verizon, T-Mobile face competition risk; tower owners CCI and AMT may gain from leasing demand

tags

instruments