T-Mobile falls 13.2% as SpaceX agrees to buy wireless spectrum
Key Facts
T-Mobile shares fell 13.2% during Friday's session on October 9, 2026, as telecom stocks came under pressure following the announcement of a SpaceX agreement to buy a spectrum portfolio supporting its expansion into mobile services. Reuters said the stock fell to its lowest level in more than 33 months amid competition concerns sparked by the move. The agency cited the Wall Street Journal, which quoted people familiar with the matter, as saying the consideration was about $8 billion in cash. The proposed deal includes Grain Management's nationwide spectrum portfolio, which SpaceX plans to use to expand Starlink Mobile. SpaceX said the low-frequency spectrum addresses one of the main remaining technical gaps in the service's transition to a major U.S. mobile carrier.
According to Reuters, the agreement covers the acquisition of 100% of Grain Management's nationwide portfolio in the 800 megahertz band. The portfolio includes up to 14 megahertz of paired spectrum, according to Benzinga's reporting on the scope of the licenses covered by the agreement. T-Mobile announced on August 11, 2026, that it had completed the sale of its 800 megahertz spectrum portfolio to Grain Management. SpaceX's agreement thus follows the portfolio's transfer from the telecom company to Grain, according to the sequence announced by the companies. Completion of the acquisition remains subject to U.S. Federal Communications Commission approval, according to Reuters, leaving the transfer of the licenses to SpaceX contingent on regulatory clearance.
The importance of low-frequency spectrum lies in its greater ability to penetrate buildings and obstacles than higher frequencies, according to Reuters, a feature that supports the service's expansion indoors. The agency added that most current mobile phones support the frequency band SpaceX is acquiring. The company already holds higher-frequency licenses at 2 gigahertz, according to Benzinga, and the new licenses will complement them to improve indoor access to the service. Elon Musk described the new spectrum as "the final critical piece of the spectrum puzzle needed to provide full mobile coverage in the United States," according to Investing.com. That description reflects the company's ambition to expand coverage, while Morgan Stanley analysts said broader competition in urban areas would require substantially more terrestrial infrastructure and spectrum.
The deal is part of SpaceX's expansion of the licenses needed for its Starlink network, which connects directly to phones, following an earlier agreement with EchoStar. EchoStar announced on September 8, 2025, an agreement to sell licenses from its portfolio to SpaceX for about $17 billion. In the telecom sector, AT&T, T-Mobile and Verizon formed a joint venture to expand satellite coverage, according to an announcement published by Verizon. The venture aims to reduce areas without mobile service while existing agreements between telecom companies and satellite operators continue. The announcement also confirmed that partners would be allowed to pursue connectivity initiatives independently alongside their participation in the joint venture.
The telecom stock selloff spread to Europe during Friday's session, according to Reuters, as investors reacted to SpaceX's expansion into the mobile services market. Shares in France's Orange lost 2.5% during trading, amid pressure on sector companies on both sides of the Atlantic. Spain's Telefonica fell 4.6% in the same session, according to market figures reported by the agency. Telecom tower stocks, meanwhile, bucked the selloff that hit mobile service operators. Investors linked SpaceX's ambitions to a potential increase in demand for terrestrial infrastructure, according to Reuters, helping explain the different response of tower stocks to the deal.
On satellite expansion, the Federal Communications Commission approved the application for the second-generation Starlink Mobile constellation during the week the deal was announced, according to Reuters. The approval allows SpaceX to launch 15,000 satellites as part of the expansion accompanying the development of its direct-to-device service. The company said the second-generation satellites would provide more than 100 times the bandwidth of the current generation, according to comments reported by Investing.com. The company's program thus combines expansion of its satellite constellation with spectrum purchases to serve phones, targeting increased capacity and improved indoor access. SpaceX set late 2027 as its target for launching its next-generation direct-to-device service, according to its statement in a Canadian government filing cited by Ars Technica.