T-Mobile falls 6.3% on SpaceX spectrum deal

• T-Mobile (NASDAQ:TMUS), AT&T (NYSE:T) and Verizon (NYSE:VZ) fell in premarket trading after SpaceX announced a nationwide U.S. low-band spectrum acquisition.
• T-Mobile dropped 6.3%, AT&T fell 5.7% and Verizon declined 5.1%.
• The deal could expand Starlink Mobile’s direct-to-device capabilities, although Morgan Stanley said the competitive threat is likely to emerge in rural markets first.

SpaceX (NASDAQ:SPCX) announced an agreement to acquire a nationwide low-band spectrum license portfolio, sending T-Mobile (NASDAQ:TMUS), AT&T (NYSE:T) and Verizon (NYSE:VZ) lower in premarket trading.

T-Mobile shares fell 6.3%, AT&T declined 5.7% and Verizon dropped 5.1% as investors assessed the potential impact of a larger Starlink Mobile presence in the U.S. wireless market.

The Wall Street Journal reported that SpaceX will pay about $8 billion in cash to private-equity firm Grain Management for the spectrum assets, although the companies have not publicly disclosed financial terms.

The spectrum could support direct-to-device satellite connectivity for smartphones, potentially expanding Starlink Mobile beyond emergency and remote-area coverage into broader commercial wireless services.

Morgan Stanley said the deal presents a more tangible competitive threat to the three largest U.S. carriers but added that the impact is likely to be concentrated in rural markets first.

Year to date, T-Mobile shares were down 15.6%, Verizon had gained 13.7% and AT&T was marginally higher before the latest premarket move.

European telecom stocks also weakened after the SpaceX announcement, including Deutsche Telekom, which owns a majority stake in T-Mobile US.