Verizon stock heads for worst day since 2002 as SpaceX U.S. network plans whack telcos
Quick Look
Major U.S. telecommunications stocks including Verizon, T-Mobile, and AT&T fell sharply Friday after SpaceX announced a deal to acquire a nationwide spectrum portfolio to expand Starlink's mobile capabilities.
AI-generated summary
Why It Matters
SpaceX is seeking to expand its Starlink satellite internet service into the mobile telecommunications market.
Telecommunications stocks sold off on Friday after Elon Musk's SpaceX announced an agreement to purchase a nationwide spectrum portfolio, aiming to expand its Starlink internet into mobile service.
Verizon was down roughly 7% on the news, and is pacing its worst day since 2002. Shares of T-Mobile were down 12% while AT&T fell around 10%. SpaceX stock climbed slightly, around 1% for the day.
The deal includes acquiring the spectrum from Grain Management, which SpaceX described as a "license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band," in a Thursday statement.
FCC Chair Brendan Carr, whose agency will oversee approval of the deal, said that competition in the spectrum market was "really good news for the American consumers" in a CNBC interview.
"We're probably going to bring over $100 billion of spectrum into the market over the next two years, so we're seeing a lot of competition," Carr told CNBC's "Squawk on the Street" on Friday.
"There's going to be moves in the market. People are going to try to out-compete, out-innovate, and I think that's great. We're going to see how this plays out. It's not for us ultimately to pick winners and losers," he added.
What to Watch
AI outlook — possibilities, not facts
FCC will review the spectrum acquisition deal.
Very likely · Within months
Open Questions
- When will the FCC finalize the approval of the spectrum deal?
- What is the specific timeline for Starlink mobile service rollout?
