QUICK SPARK: AT&T Sinks 11% In Worst Day Since 2000 As SpaceX Spectrum Deal Rattles Carriers
AT&T stock falls 11%, on track for its largest one-day loss since December 2000, after SpaceX agrees to buy nationwide low-band spectrum.
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T-Mobile stock falls 13%, its steepest drop since 2013, after SpaceX agrees to buy nationwide low-band spectrum for Starlink Mobile.
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AT&T stock falls 11%, on track for its largest one-day loss since December 2000, after SpaceX agrees to buy nationwide low-band spectrum.
SpaceX announced plans to acquire a low-band spectrum portfolio from Grain Management for $8 billion, completing its spectrum needs for mobile service. The low-band spectrum enables signals to travel through walls and solid structures, allowing Starlink to enhance its mobile service capabilities. While this threatens traditional telecom carriers, analysts expect SpaceX won't materially impact their operations until at least 2029.
SpaceX has purchased spectrum from Grain Management to launch Starlink Mobile as a major U.S. mobile carrier, causing T-Mobile stock to plunge 13%. The move transforms SpaceX from a T-Mobile partner providing emergency coverage into a direct competitor, threatening T-Mobile's expected growth advantage over AT&T and Verizon.
The Nasdaq 100 recovers from Thursday's OpenAI-driven selloff while T-Mobile sinks 12% on SpaceX's spectrum deal and the 10-year yield holds near 5.26%.
Analysts warn that a SpaceX-built phone using its own network could pressure carrier pricing and offer features that existing wireless providers lack.