SpaceX calls the deal the key to becoming a US mobile carrier
SpaceX acquired a nationwide low-band spectrum license portfolio it said would let Starlink Mobile become a major mobile carrier in the United States, sending shares of Verizon, AT&T and T-Mobile sharply lower on Thursday.
“This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US,” SpaceX said in announcing the purchase.
The reaction in US markets was immediate. Verizon Communications tumbled 7%, AT&T dropped 7.5% and T-Mobile US fell 6.7%, as investors weighed the prospect of a new competitor offering what SpaceX described as the world’s “most advanced broadband network from space,” according to The Guardian’s live coverage.
The same jitters spilled into UK markets, The Guardian reported. BT, which owns EE, fell 0.5% and Vodafone slipped 2.6%.
SpaceX currently provides high-speed internet connections through its Starlink satellite constellations in more than 160 countries. The company said the spectrum purchase would let it add a full US mobile service to that offering.