Verizon, AT&T, T-Mobile Stocks Slide as SpaceX Expands Wireless Ambitions
Shares of major U.S. wireless carriers — Verizon Communications Inc. (NYSE: VZ ), AT&T Inc. (NYSE: T ) and T-Mobile US (NASDAQ: TMUS ) — are trading lower in premarket trading on Friday after Space Exploration Technologies Corp. (NASDAQ: SPCX ) disclosed a deal that could position it as a stronger competitor in the wireless market. Rising Treasury yields are adding further pressure on dividend-paying stocks. SpaceX Spectrum Deal Raises Competition Concerns On Thursday, SpaceX disclosed the acquisition of the nationwide 800 MHz spectrum portfolio from Grain Management for an undisclosed amount. Elon Musk described the deal as an "earthquake," while SpaceX’s COO has said the company plans to target existing wireless carrier customers, raising concerns about increased competition for the major operators. Read Also: Elon Musk Says SPCX Could Be Worth 'Orders of Magnitude More' Than the Entire Earth Economy: 'Super Crazy' The announcement follows the FCC’s earlier approval of SpaceX’s direct-to-device satellite constellation and the satellite joint venture announced by Verizon, AT&T and T-Mobile on Oct. 2. Wireless Carriers Join Forces To Expand Satellite Coverage Last week, AT&T, T-Mob
S. wireless carriers — Verizon Communications Inc. (NYSE: VZ ), AT&T Inc. (NYSE: T ) and T-Mobile US (NASDAQ: TMUS ) — are trading lower in premarket trading on Friday after Space Exploration Technologies Corp.
(NASDAQ: SPCX ) disclosed a deal that could position it as a stronger competitor in the wireless market. Rising Treasury yields are adding further pressure on dividend-paying stocks. SpaceX Spectrum Deal Raises Competition Concerns On Thursday, SpaceX disclosed the acquisition of the nationwide 800 MHz spectrum portfolio from Grain Management for an undisclosed amount. Elon Musk described the deal as an "earthquake," while SpaceX’s COO has said the company plans to target existing wireless carrier customers, raising concerns about increased competition for the major operators.
Read Also: Elon Musk Says SPCX Could Be Worth 'Orders of Magnitude More' Than the Entire Earth Economy: 'Super Crazy' The announcement follows the FCC’s earlier approval of SpaceX’s direct-to-device satellite constellation and the satellite joint venture announced by Verizon, AT&T and T-Mobile on Oct. 2. S. where conventional mobile service remains limited.
The initiative builds on a plan announced in May, when the three wireless providers agreed to combine certain spectrum assets to help eliminate cellular dead zones and extend satellite-based service to customers nationwide. Paul Roth, a telecommunications executive who previously held senior roles at AT&T, Cingular Wireless and Ameritech, has been appointed interim CEO of the venture. The venture aims to expand satellite connectivity in underserved areas, complementing existing mobile networks to improve coverage and reliability. It also seeks to encourage competition and innovation while preserving the carriers’ existing satellite partnerships.
12 during premarket trading on Friday, according to Pro data. Photo via Shutterstock