European telecom shares fall after SpaceX spectrum deal
XLC•European telecom shares fell 3% to 7% after SpaceX agreed to acquire a nationwide low-band spectrum license portfolio that could help Starlink Mobile become a major U.S. telecom operator. The STOXX 600 Telecommunications index fell 2.8%.
1. Shares decline
Deutsche Telekom fell 7%, putting it on track for its worst day since June 2023. Telefonica, Orange and Vodafone each fell around 3%.
2. Spectrum deal
SpaceX announced an agreement to acquire a nationwide low-band spectrum license portfolio, which could allow Starlink Mobile to offer mobile phone connections directly from space to smartphones in the future. A local trader said the deal was a “Negative read across for Telekom as competition in USA intensifies.”
3. Network questions remain
Scotiabank said the purchase makes the hybrid-network threat more credible, but that dense-market capacity and deployment economics remain unproven.
