Telecommunications stocks plunge after SpaceX acquires spectrum to expand Starlink mobile

Major United States telecommunications stocks fell sharply on Friday following an announcement by SpaceX regarding a nationwide spectrum deal, according to CNBC and NBC News. The company, owned by Elon Musk, plans to expand its Starlink internet service directly into the mobile market. Market reactions were immediate across the major wireless carriers. [1][3][6]

CNBC reported that Verizon shares dropped 8.75 percent on Friday, marking the company's worst single-day market performance since July 2002. T-Mobile shares declined 13.27 percent and AT&T shares fell 9.81 percent, which CNBC noted were their largest single-day drops since 2013 and 2000, respectively. [1][3]

SpaceX announced on Thursday that it entered an agreement to acquire a nationwide spectrum portfolio from Grain Management, CNBC reported. SpaceX described the transaction in a statement as a license portfolio containing up to 14 megahertz of paired spectrum in the 800 MHz band. [1]

The acquisition aims to push SpaceX deeper into the telecommunications sector by enhancing mobile capabilities for its Starlink service. The deal remains subject to review by Federal Communications Commission Chair Brendan Carr, CNBC noted. [1][6]