SpaceX reached a deal to buy cellular spectrum licenses from investment firm Grain Management, its biggest move yet into a wireless market dominated by traditional telecom companies.
The U.S. licenses, which are in the 800-megahertz band, are tailored for wireless service from cellphone towers rather than satellites. The spectrum could serve SpaceX’s stated ambition of moving its Starlink satellite service beyond broadband into the wireless market to compete with the likes of AT&T & Verizon.
U.S. cellphone carrier stocks sank on the news. Shares in AT&T, Verizon and T-Mobile all fell more than 6% after the post-close announcement. SpaceX shares climbed about 3% to $165.10 after hours.