US cell tower operators rise as SpaceX reportedly pushes to build mobile network
AMT•AMT•AMT•AMT•Crown Castle and American Tower shares rose premarket after SpaceX reportedly held talks with Crown Castle to access at least 80,000 US cellular sites as it seeks to build a fourth nationwide wireless carrier. AT&T, Verizon and T-Mobile shares fell between 3.1% and 3.7%.
Crown Castle shares rose 7.3% to $84.60 and American Tower gained 5.7% to $191.96 premarket. Both were set to open at their highest levels in four months if the gains held.
Bernstein said a potential SpaceX mobile network build-out could create substantial leasing opportunities for tower companies while increasing competition and costs for existing telecom operators. Citi said US wireless carriers have at least three to five years to strengthen networks, adjust marketing and cut costs before SpaceX enters the mobile market.
Citi said buying an existing national telecom operator could be more economical for SpaceX, with AT&T and Verizon potentially favored over T-Mobile because of their fiber broadband assets.
