TLDR
- SpaceX agreed to buy Grain Management’s nationwide 800 MHz spectrum portfolio to grow its Starlink Mobile business.
- AT&T, Verizon and T-Mobile shares fell sharply in after hours trading following the news.
- Crown Castle, American Tower and SBA Communications shares rose as demand for cell towers could grow.
- Starlink Mobile is expected to launch in 2027, combining satellite coverage with ground based networks.
- Bernstein estimates the full network buildout could cost between $50 billion and $130 billion.
SpaceX has taken a new step toward becoming a major player in the wireless phone business. The company announced late Thursday that it reached a deal to purchase Grain Management’s nationwide 800 MHz spectrum portfolio.
We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for @Starlink to become a major mobile carrier in the US.
With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to… pic.twitter.com/uVktZ0g3tu
— SpaceX (@SpaceX) October 8, 2026
This spectrum gives SpaceX government licenses to send wireless data over specific radio frequencies across the country. It is seen as a key building block for Starlink Mobile, the company’s plan to offer cellular service directly to phones.
The news caused a sharp reaction in the stock market. Shares of AT&T, Verizon and T-Mobile all dropped in after hours trading once the deal was announced.
Verizon fell close to 6%. AT&T and T-Mobile each dropped more than 6% as well.
Verizon Communications Inc., VZ
Investors have grown worried that Starlink could shift from a rural internet provider into a direct competitor for traditional phone carriers. That fear has been building for months.
What the Deal Means for Starlink’s Future
With this new spectrum, SpaceX can combine its satellite network with a ground based cellular system. The company still needs approval from the Federal Communications Commission before moving forward.
Starlink Mobile is expected to launch sometime in 2027. Analysts say low band spectrum like this requires fewer cell towers compared to higher frequency options, which could make the rollout cheaper.
Bernstein analyst Madison Rezaei wrote that buying the spectrum does not guarantee SpaceX will build a full nationwide network. But she said it makes that option more realistic and more affordable.
AT&T CEO John Stankey addressed the competition question last month at a conference. He said Starlink will likely succeed in specific areas like airline internet and rural coverage.
Stankey also said there could be ways for AT&T and satellite companies to work together. He mentioned the idea of sending certain customers to satellite providers when it makes sense.
Tower Companies See Gains From the News
While phone carriers lost value, tower companies had a different reaction. Crown Castle shares rose 7% in extended trading.
American Tower climbed 5%, and SBA Communications gained 6%. These companies lease space on their towers to wireless carriers, and a SpaceX buildout could mean new customers for them.
Tower stocks have struggled in recent years. Crown Castle shares have dropped almost 60% over the past five years as carriers slowed spending after their 5G rollouts.
Rezaei said tower stock prices have been low for some time. She added that this deal could give the sector a reason to recover.
Bernstein estimates that a full SpaceX network could cost between $50 billion and $130 billion. The build could require between 30,000 and 120,000 tower locations depending on how wide the coverage area becomes.
Local rules around zoning, power and labor limit how many new towers can be built each year in the United States. That number sits between 1,200 and 2,000 new structures annually.
Because of these limits, SpaceX would likely need to lease space from existing tower companies rather than build everything from scratch. That puts American Tower, Crown Castle and SBA Communications in a strong position to gain new rental income.
The spectrum purchase still needs regulatory approval before Starlink Mobile can move forward with its 2027 launch target.
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