SpaceX to acquire US mobile spectrum licences; AT&T, Verizon, T-Mobile shares fall
In short
SpaceX announced on October 8 that it had signed a contract to acquire licences for a low-frequency band used for mobile phone communications across the United States. The company said combining its Starlink satellite service with a terrestrial network opens the way for it to become a major mobile carrier. Nikkei reported that in after-hours trading AT&T fell 7.5% and Verizon Communications and T-Mobile US each fell 7%.
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SpaceX announced on October 8 that it had signed a contract to acquire licences to use a low-frequency band for mobile phone communications across the United States, according to Kyodo News in Tokyo Shimbun and to Sankei Shimbun. Nikkei reported that the company said it would acquire licences for a frequency band used for terrestrial mobile communications in the US. Nishi-Nippon Shimbun's headline described the deal as a step toward strengthening SpaceX's mobile communications business. [ 1 , 2 , 3 , 4 ]
SpaceX said that combining its Starlink satellite communications service, in which the reports said it holds an advantage, with a terrestrial network opens the way for it to become a major mobile carrier. Nikkei described the band as a main band for smartphones whose signals reach widely, including indoors, and said the move marks SpaceX stepping up its entry into the carrier business. [ 1 , 3 , 4 ]
Low-frequency radio waves pass easily through obstacles such as walls, and the licences will make it easier for users to make calls and use data indoors, Tokyo Shimbun and Sankei Shimbun reported. Chief executive Elon Musk stressed the deal's significance in a post on X, formerly Twitter, calling it "a very big deal". [ 3 , 4 ]
US telecom shares fell after the announcement. Nikkei reported that in after-hours trading on October 8 AT&T dropped 7.5%, while Verizon Communications and T-Mobile US each dropped 7%. Sankei Shimbun cited Western media as reporting that shares of the three major US carriers, including Verizon, fell sharply at one point in after-hours trading on wariness of intensifying competition. [ 1 , 4 ]
None of the reports named the seller of the licences or gave the price or other terms of the contract. [ 1 , 3 , 4 ]
Why it matters
Nikkei described the move as SpaceX stepping up its entry into the mobile carrier business, and Sankei Shimbun cited Western media as saying investors were wary of intensifying competition for the major US carriers. The reports said the low-frequency band would make indoor calls and data use easier for users.
Key facts
- SpaceX announced on October 8 that it will acquire licences in the United States for spectrum used for mobile phone communications. [ 1 , 3 , 4 ]
- Tokyo Shimbun and Sankei Shimbun reported that SpaceX said it had signed a contract to acquire licences to use a low-frequency band nationwide. [ 3 , 4 ]
- SpaceX said combining its Starlink satellite service with a terrestrial network opens the way for it to become a major mobile carrier. [ 3 , 4 ]
- Low-frequency signals pass easily through obstacles such as walls, making indoor calls and data use easier, the reports said. [ 3 , 4 ]
- Chief executive Elon Musk wrote on X that it was "a very big deal". [ 3 , 4 ]
- In after-hours trading on October 8, AT&T fell 7.5%, Verizon Communications 7% and T-Mobile US 7%, Nikkei reported. [ 1 ]
Confirmed by several sources
Still unclear
- Who is selling the licences and what SpaceX is paying for them. None of the documents names the seller or gives a price or other terms of the contract.
- The exact size of the share price declines. Only Nikkei gives percentage figures; Sankei Shimbun cites Western media reports that the shares fell sharply at one point in after-hours trading.
- When SpaceX will begin offering mobile service using the spectrum. The documents give no timetable.
- SpaceX said combining Starlink with a terrestrial network opens the way for it to become a major mobile carrier. Reported by a single source so far
- Elon Musk called it "a very big deal" in a post on X. Reported by a single source so far
What local media are saying
Timeline, local time
- Nikkei reports SpaceX's spectrum announcement and the after-hours fall in AT&T, Verizon and T-Mobile US shares. [ 1 ]
- Nishi-Nippon Shimbun reports SpaceX's acquisition of US spectrum as a step toward strengthening its mobile business. [ 2 ]
- Tokyo Shimbun carries a Kyodo report on the licence contract and Musk's comment. [ 3 ]
- Sankei Shimbun reports the deal and Western media reports of falls in US telecom shares. [ 4 ]