SpaceX spectrum purchase triggers $45 billion drop in US telecom valuations
Shares of major US carriers AT&T, Verizon, and T-Mobile fell after SpaceX announced it had acquired low-band spectrum licenses that could support a direct-to-cell service. The combined market value of the largest American telecom firms dropped by roughly $45 billion. European operators including Deutsche Telekom, Vodafone, Orange, Telefonica, BT, and KPN also saw their stocks decline.
SpaceX said Thursday it is acquiring licenses for up to 14 MHz of paired spectrum in the 800 MHz band. The move supports its planned Starlink Mobile direct-to-cell service and positions it as a possible standalone US wireless rival. Musk described the deal on X as highly significant.
On Friday, US carriers fell: AT&T and Verizon each about 6%, T-Mobile about 10% by 13:37. European telecom shares also weakened, including Deutsche Telekom down 7.2%, Vodafone 3.8%, Orange 2%, Telefonica 4%, BT 1.9%, and KPN 1.1%.
If SpaceX becomes a direct-to-cell provider, consumers in underserved areas could gain another connectivity option, potentially increasing competition and pressure on prices. Existing carriers and their employees/shareholders may face uncertainty as valuations react. European operators could also feel indirect effects if investors reassess competitive risks. Regulators may examine spectrum ownership and market concentration. Satellite-based mobile coverage may improve emergency communications, though service quality, pricing, and adoption remain uncertain.