US telecom stocks slip, rattled by SpaceX's mobile ambitions
XLC•Why analysts say the carriers retain an advantage
The three largest U.S. wireless carriers have invested hundreds of billions of dollars over three decades into acquiring spectrum licenses, building and upgrading their networks, and spending heavily to attract and retain subscribers — advantages analysts say would be difficult for SpaceX to match.
Telecom shares fall after SpaceX outlines mobile plans
Shares of U.S. telecom stocks were down premarket after SpaceX revealed its ambition to build a full-fledged mobile service.
The company outlined plans that could eventually pit Starlink against industry leaders Verizon, AT&T and T-Mobile.
- Verizon shares slipped 2.3%
- AT&T fell 2.2%
- T-Mobile dropped 1.2%
SpaceX spectrum purchases and terrestrial buildout plans
SpaceX acquired 65 megahertz of wireless spectrum licenses from EchoStar for a total of $19.6 billion through two deals announced last year.
"The spectrum that we purchased from EchoStar does have terrestrial components, so we definitely intend to build out terrestrial," SpaceX President Gwynne Shotwell said during a post-earnings call on Tuesday.
