Elon Musk's Space Exploration Technologies (SPCX +1.42%) announced a landmark deal to buy spectrum for satellite communications services yesterday, and AT&T (T -6.82%) investors aren't happy about the news.
Not one little bit. AT&T stock is down 6.8% as of 10:35 a.m. ET.
Satellite beaming message to Earth. Image source: Getty Images.
What did SpaceX do yesterday?
As CNBC reports, SpaceX signed a deal to license "up to 14 megahertz of paired spectrum in the 800 MHz band" to provide Starlink Mobile telephone services to its customers. Elon Musk calls the agreement to buy the spectrum from private equity firm Grain Management (which sounds like an agricultural concern, but isn't) a "very big deal."
Very big deal
— Elon Musk (@elonmusk) October 8, 2026
SpaceX itself says the purchase "will pave the way for Starlink Mobile to become a major mobile carrier in the US."
So you can understand why that might make AT&T investors nervous.
NYSE: T
Key Data Points
What this means for the industry
SpaceX currently provides Starlink Mobile services to U.S. customers of T-Mobile (TMUS -10.83%). The limited spectrum available, plus SpaceX's relatively small number of direct-to-cell-capable satellites, has meant Starlink Mobile is primarily used for emergency service and supplemental service in cellular "dead zones."
As SpaceX gains spectrum, however, it will increasingly be able to extend Starlink D2C service to more customers, and provide increasing levels of text, talk, and broadband capability, putting it into direct competition with incumbent cell providers such as AT&T. Indeed, SpaceX's statement comes right out and says this: SpaceX intends "to become a major mobile carrier" in its own right.
So things are looking up for SpaceX. I wouldn't necessarily dump AT&T stock on this news, however. Priced below 10x forward earnings, it's a whole lot cheaper than SpaceX at 200x forward earnings -- and there's plenty of room in this market for more than one provider.
