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Telecom Stocks Plunge After SpaceX Spectrum Deal Sparks Competition Fears
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CNBC TV18•09-10-2026, 15:14
Telecom Stocks Plunge After SpaceX Spectrum Deal Sparks Competition Fears
- •US and European telecom stocks dropped sharply on Friday following SpaceX's acquisition of a low-band spectrum portfolio.
- •Major operators like T-Mobile US, Verizon, AT&T, Deutsche Telekom, and Vodafone saw significant declines in trading.
- •SpaceX agreed to acquire Grain Management's 800 MHz spectrum portfolio for an estimated 8 billion dollars to boost satellite connectivity.
- •Analysts note the deal signals SpaceX's aggressive move into spectrum acquisition, posing a gradual threat to established carriers especially in rural markets.
- •Meanwhile, telecom tower operators bucked the selloff with shares rising as investors anticipate increased demand for terrestrial infrastructure.
Key Questions Answered
SpaceX agreed to acquire a nationwide 800 MHz spectrum portfolio from private-equity firm Grain Management in a deal valued at about $8 billion to bolster its Starlink Mobile connectivity ambitions.
US carriers like T-Mobile, Verizon, and AT&T fell between 5% and 6% in premarket trading, while the STOXX Europe 600 Telecommunications index dropped 3.3% as major European operators also saw their stock prices slide.
Telecom tower operators such as American Tower, Crown Castle, and SBA Communications bucked the selloff, advancing between 5% and 6% as investors anticipated increased demand for terrestrial infrastructure.
