AT&T Inc. (NYSE:T) shares are sliding Thursday after a report that SpaceX wants access to at least 80,000 cell sites across the U.S., a prospect that is stoking competition fears for wireless carriers.
- AT&T stock is showing notable weakness. What’s behind T decline?
AT&T Stock Falls On SpaceX Cell Site Talks
SpaceX Exploration Technologies Corp. (NASDAQ:SPCX) is negotiating for tens of thousands of U.S. cell sites. People familiar with the matter told Bloomberg the company wants at least 80,000 sites and is talking with at least one major tower company to get them. The people asked for anonymity because the discussions are private.
Landing the sites would advance SpaceX’s plan to build a fourth nationwide wireless carrier, the people said. Crown Castle Inc. (NYSE:CCI) is one of the companies at the table. Crown Castle, American Tower and Vertical Bridge count among the biggest tower owners. Such agreements could be worth billions of dollars.
Crown Castle CEO Chris Hillabrant stopped short of confirming a deal on a Wednesday earnings call. When asked about leases with SpaceX, Amazon.com Inc or other satellite providers, Hillabrant said, “You can assume that we’re talking to all parties.” He declined to name customers.
Requests for comment sent to SpaceX and Vertical Bridge Holdings went unanswered at first, according to the report.
SpaceX Builds Toward a Fourth Wireless Carrier
Elon Musk has openly said he wants a standalone wireless carrier built from scratch. SpaceX recently bought low-band spectrum to help convert Starlink, and the Federal Communications Commission approved 15,000 satellites designed to connect directly to phones.
Cell sites would fill another gap, because SpaceX needs them for dependable links with users on the ground. On SpaceX’s earnings call this week, Musk said the company will expand its terrestrial networks so coverage reaches wherever Starlink may operate.
Telecom Stocks Slide
AT&T is one of the established wireless carriers, so a new nationwide competitor bears directly on its business. Cell towers are a key piece of any network, and SpaceX needs tower sites to build reliable coverage on the ground.
If SpaceX secures 80,000 sites, it moves closer to launching a fourth carrier that competes with AT&T, Verizon and T-Mobile.
T Shares Are Dropping
T Price Action: AT&T shares were down 5.06% at $21.59 at the time of publication on Friday, according to Benzinga Pro.
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