US telecom operators wobble after SpaceX reportedly seeks cell sites
XLC•US telecom stocks fell after SpaceX reportedly was in talks to access at least 80,000 cell sites for a wireless carrier. AT&T dropped 5.6%, Verizon fell 1.6% and T-Mobile lost 5%, while Crown Castle rose 11.6%.
1. Telecom shares decline
US telecom stocks declined on Friday after SpaceX reportedly was in talks to access at least 80,000 cell sites to build a wireless carrier. AT&T fell 5.6% to a more than three-month low, Verizon lost 1.6% and T-Mobile shed 5%.
2. Tower operators rise
Crown Castle surged 11.6% after being identified as one of the cellular infrastructure companies SpaceX was in talks with. American Tower rose 4.9%, SBA Communications gained 4.6% and SpaceX shares rose 1.7%. Bernstein analysts said the competitive impact may still be years away, but anticipation is likely to weigh on sector sentiment.
3. Carrier plans
The report followed SpaceX's acquisition of low-band spectrum weeks earlier. Bernstein analysts said an MVNO deal with SpaceX may not appeal to telecom operators, while Starlink's internet business in sparsely populated and rural areas would need years of work and a terrestrial network to become a direct rival to major carriers.
