SpaceX makes big move into wireless. These once 'obsolete' tech stocks could benefit
Some analysts think the move could also be a bluff designed to secure a traditional carrier deal.
TL;DR
- SpaceX is acquiring nationwide 800 MHz spectrum for its Starlink Mobile service.
- Tower stocks (American Tower, Crown Castle, SBA Communications) saw significant gains, while mobile carriers (AT&T, Verizon, T-Mobile) declined.
- The spectrum purchase suggests SpaceX is moving closer to providing robust terrestrial mobile broadband, including coverage within buildings.
- This development bolsters the value of tower assets and challenges the idea that direct-to-device satellite service will make towers obsolete.
- Some analysts speculate SpaceX might be bluffing to negotiate better deals with traditional carriers.
- Analysts anticipate SpaceX may acquire more spectrum and potentially build its own terrestrial network, further increasing the value of tower assets.
- The move could secure or increase dividends for investors in tower REITs.