Telecom Stocks Face Heavy Selling Pressure Monday: Here's Why

Verizon Communications Inc (NYSE: VZ ) and AT&T Inc (NYSE: T ) shares are falling Monday.

There are reports of new satellite connectivity headlines that could reshape the U.S. wireless market.

Here’s what you should know.

Verizon Communications shares are sliding.

What’s pressuring VZ stock? Starlink Mobile Plans Pressure Traditional Carriers SpaceX Exploration Technologies Corp (NASDAQ: SPCX ) is considering a direct‑to‑consumer Starlink mobile service in the United States.

The Financial Times reported that during its IPO roadshow, SpaceX executives told investors the company may launch a retail mobile product that would sell phone plans directly to customers, putting Starlink in direct competition with Verizon and AT&T.

Starlink has historically partnered with carriers such as T‑Mobile to supplement rural coverage.

A retail mobile offering would be one of SpaceX’s largest commercial expansions, giving it access to a far larger market than satellite broadband alone.

The company already serves more than 10.3 million customers worldwide and has spent $17 billion on wireless spectrum licenses, a move analysts viewed as groundwork for a future mobile network.

Shares of T‑Mobile US Inc (NASDAQ: TMUS ) were also lower at last check on Monday.

Analysts have cautioned that building a terrestrial network would require billions of dollars and far more spectrum than SpaceX currently holds.

Verizon, AT&T and T‑Mobile collectively control about 1,020MHz of spectrum, while SpaceX has roughly 65MHz.

Global Satellite Momentum Adds To The Narrative Japan is preparing about $926 million in subsidies for a Rakuten‑led consortium that will build a domestic satellite communications network in partnership with AST SpaceMobile Inc (NASDAQ: ASTS ).

The project aims to reduce reliance on foreign networks such as Starlink and provide coverage in remote regions and disaster zones.

Regulators plan to revise rules in September to support direct satellite communications in the 700‑megahertz band, according to Nikkei Asia.

The broader satellite push has also kept Rocket Lab Corp (NASDAQ: RKLB ) in focus.

Rocket Lab has expanded deeper into satellite communications with its acquisition of Iridium Communications, and traders have been watching the stock as a secondary beneficiary of rising global investment in direct‑to‑mobile networks.

VZ, T Shares Slide VZ Price Action: Verizon shares were down 5.29% at $44.08 at the time of publication on Monday.

AT&T shares were down 4.09% at $21.79, representing new 52-week closing lows, according to Pro.

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