Key points
- SpaceX agreed to buy nationwide low-band spectrum for Starlink Mobile
- AT&T, Verizon, and T-Mobile fell before the open
- Tower stocks rose on the prospect of a ground network
Shares of AT&T (T), Verizon (VZ), and T-Mobile (TMUS) fell in premarket trading on October 9 after SpaceX (SPCX) announced a deal the previous evening to buy nationwide low-band spectrum for Starlink Mobile. Cell tower stocks rose.
SpaceX will acquire all of Grain Management's nationwide 800 MHz spectrum portfolio, the private investment firm announced on October 8. That's up to 14 megahertz of paired spectrum, Yahoo Finance reported. The companies didn't disclose a price, and the deal needs approval from the Federal Communications Commission. SpaceX will pay about $8 billion in cash, The Wall Street Journal reported.
"This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America," SpaceX Chief Executive Elon Musk posted on X.
Low-band spectrum reaches inside buildings
SpaceX said that once it gets FCC approval, it plans to connect its Starlink satellites that serve phones with an advanced network on the ground. Low-band spectrum can help a ground network reach users indoors, where direct satellite connections are harder to maintain.
The spectrum used to belong to T-Mobile. Grain bought the portfolio from T-Mobile in August 2026, paying cash and its own 600 MHz spectrum, according to Grain's announcement. The deal also adds to the spectrum SpaceX agreed to buy from EchoStar in 2025. On October 6, two FCC bureaus authorized SpaceX to deploy 15,000 satellites that connect directly to phones.
SpaceX has been open about its target. On the company's August earnings call, President Gwynne Shotwell said SpaceX expects to win "quite a few" customers from the three big carriers.
Carriers fell and tower owners rose
As of 9:10 a.m. ET, T-Mobile was down 7.2% at $158.97. AT&T was at $23.11 and Verizon at $43.45. Both stocks went ex-dividend on October 9, so part of the move reflects their quarterly payouts. Adjusted for the dividends, AT&T was down about 6% and Verizon about 4.8%.
Tower owners moved the other way. Crown Castle (CCI) was up 7% at $73.70, and American Tower (AMT) was up 7.1% at $178.50. A ground network could bring new leasing business to tower owners, which charge carriers to install equipment at their sites.
Bernstein analysts said the purchase keeps "the terrestrial network build option very much alive," according to Investing.com. They noted that buying spectrum isn't a commitment to build towers. SpaceX shares were up 3.1% at $165.49.
