SpaceX Network Plans Hit Verizon Stock
Verizon's stock experienced its worst day since 2002 following SpaceX's announcement to acquire nationwide spectrum, impacting major US telecom companies.
Verizon Communications' stock plunged on Friday following Elon Musk's SpaceX announcing plans to acquire a nationwide spectrum portfolio, aiming to extend Starlink internet services to mobile.
The company's shares were down approximately 7% for the day, on pace for their worst performance since 2002. Competitors T-Mobile and AT&T also saw significant drops, falling around 12% and 10%, respectively.
SpaceX stated it is acquiring the spectrum license portfolio, which includes up to 14 megahertz of paired spectrum in the 800 MHz band, from Grain Management. This move is intended to integrate its Starlink satellite internet service with mobile offerings.
FCC Chair Brendan Carr told CNBC that increased competition in the spectrum market is "really good news for the American consumers." He projected that over $100 billion in spectrum will be brought to market in the next two years, intensifying competition.
Carr indicated that companies will need to compete and innovate, and that the FCC's role is not to pick winners or losers but to observe market developments.