SpaceX plans to purchase Grain Management’s 800 MHz spectrum portfolio in a move to bolster its mobile ambitions. The news is lifting cell-tower stocks. SpaceX just made a move that could position its Starlink business to become a “major mobile carrier,” the company shared in a Thursday press release.
On Thursday, SpaceX reached a definitive agreement with the digital-infrastructure investment firm Grain Management to purchase Grain’s nationwide 800 MHz spectrum portfolio. The acquisition would give SpaceX government-issued licenses granting the exclusive right to transmit wireless data over specific low-band radio frequencies across designated geographic areas. Acquiring Grain Management’s 800 MHz spectrum gives Starlink’s mobile ambitions a major boost, providing the groundwork for cellular networks.
Upon FCC approval, Starlink Mobile will combine its satellite-to-mobile constellation in space with its newly acquired terrestrial network. Shares of SpaceX rose 2% in after-hours trading. Meanwhile, shares of traditional wireless operators fell.
Verizon Communications shares were off almost 6%, while AT&T and T-Mobile US shares were down more than 6%. Don’t Short Yourself offers weekly money tips to help you earn it, stack it and grow it. I would like to receive updates and special offers from Dow Jones and affiliates.
I can unsubscribe at any time. In a Thursday note, Bernstein analyst Madison Rezaei said the acquisition highlights the continuing importance of traditional cell towers. It also makes the upcoming launch of Starlink Mobile, slated for 2027, more cost-effective, as low-bandwidth spectrum requires fewer cell towers than higher-frequency bands. network,” Rezaei wrote.
In Thursday’s extended session, Crown Castle’s stock rose 7%, American Tower’s stock climbed 5% and SBA Communications shares rose 6%. Tower companies have seen their valuations come down in the past few years as wireless carriers pulled back spending after the initial 5G buildout. For example, shares of Crown Castle have fallen almost 60% over five years.
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