Telecom stocks under fire, sink up to 13% as Elon Musk’s Starlink buys spectrum from Grain Management

Shares of global telecom companies will remain in focus on Monday after a sharp selloff on Friday, when SpaceX announced an agreement to acquire a nationwide portfolio of low-band spectrum licences, raising concerns that Starlink could emerge as a formidable challenger to traditional wireless operators.

Verizon, AT&T and T-Mobile shares fell by up to 13% on Friday as the announcement fuelled concerns over potential disruption to the wireless telecom industry. SpaceX has agreed to acquire up to 14 megahertz of paired spectrum in the 800 MHz band from Grain Management LLC, an investment firm specialising in digital infrastructure.

The deal marks a significant escalation in SpaceX's consumer telecom ambitions, with the company looking to combine satellite connectivity with terrestrial infrastructure to expand mobile coverage across the US. Once it receives approval from the Federal Communications Commission (FCC), SpaceX intends to connect its Starlink satellite-to-mobile constellation with an advanced terrestrial network.


The company said the newly acquired low-band spectrum would allow its network to reach customers' devices through walls and buildings, helping deliver coverage in areas where connectivity is typically unavailable, including dead zones.

"This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America," SpaceX CEO Elon Musk posted on X.

SpaceX's plans to challenge established wireless operators have been taking shape for some time. During the company's earnings call in August, COO Gwynne Shotwell said Starlink intended to build a terrestrial wireless network and compete for customers of Verizon, AT&T and T-Mobile. She also said the company planned to launch its second-generation Starlink Mobile satellites in 2027.

Low-band spectrum is particularly suited to broad-area mobile coverage because its signals can travel longer distances and penetrate buildings more effectively than higher-frequency airwaves. Mid- and high-band spectrum, by contrast, can carry more data at higher speeds but cover a smaller area.

SpaceX plans to use the acquired 800 MHz spectrum licences to develop a hybrid architecture for Starlink Mobile, combining satellite connectivity with terrestrial infrastructure. The company also plans to integrate the spectrum into its next-generation satellite system while deploying ground-based radios and antennas on towers and rooftops, a Reuters report said.

The move comes as established telecom operators continue to build their own low-band spectrum portfolios. AT&T holds spectrum in the 700 MHz and 850 MHz bands, alongside 600 MHz licences acquired through its July EchoStar deal. Verizon holds spectrum in the 700 MHz and 850 MHz bands, while T-Mobile's low-band holdings include the 600 MHz and 700 MHz bands, the report added.

SpaceX has also secured a key regulatory approval for its satellite ambitions. The FCC approved Starlink Mobile's Gen2 constellation application this week, authorising the company to launch 15,000 satellites optimised for 2 GHz spectrum worldwide.

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