SpaceX spectrum deal reinforces need for terrestrial towers, Gravis says
SPCX•Gravis says SpaceX’s roughly $8 billion Grain spectrum deal strengthens its leverage over incumbent U.S. carriers but does not provide an operational nationwide network. Building one could take at least five years and tens of billions of dollars, while a wholesale deal could limit demand for new tower sites.
1. Network options
Gravis says the spectrum deal strengthens SpaceX’s leverage over incumbent U.S. carriers rather than delivering an operational nationwide network. Building a competitive national network would likely take at least five years and tens of billions of dollars; renting incumbent network capacity through a wholesale agreement could be a more capital-efficient route into mobile services.
2. Tower and carrier stocks
Terrestrial expansion could add a potential tenant for tower operators, while a wholesale agreement could limit demand for new sites. Tower stocks rose October 9, led by Crown Castle’s 15.6% gain, while major U.S. mobile carriers fell more than 10%.
