SpaceX Talks on 80,000 Cell Sites Weigh on U.S. Telecom Stocks
Key Facts
Bloomberg reported that SpaceX is in talks with cellular infrastructure companies to access at least 80,000 sites in the United States, a move that could support its path toward building a fourth national carrier. The Business Times cited the report as saying the talks were based on people familiar with the matter; it did not report that any agreements had been reached or a network established. The news came as the company’s plans raised the prospect of competition in the wireless market. In after-hours trading following the report on October 22, AT&T, Verizon and T-Mobile shares fell about 5%, while Crown Castle shares rose as much as 10%. The moves reflect the news’s differing impact on telecom operators and cellular infrastructure owners.
EL7 data show AT&T closed at $21.91 on October 21 and then at $22.74 on October 22, meaning the second close was higher than the first. That does not conflict with the telecom share declines cited in the report, as those declines came in after-hours trading after the news was published, while closing data compare prices at the end of the regular session. The difference in timing puts the stock move in context: it rose between the closes, then the sector came under pressure in extended trading. Closing data alone therefore do not describe the market’s subsequent reaction to the report. The report also did not specify that AT&T’s after-hours decline was the outcome of the regular session.
The site figure highlights the scale of infrastructure SpaceX is seeking to access: 80,000 sites equal half of the roughly 158,500 purpose-built cell towers operating in the United States in 2025, according to Reuters, citing the Wireless Infrastructure Association. This comparison gives the talks a practical dimension beyond expanding satellite service, because ground sites are part of a broad communications network. But the talks do not mean the company has secured these sites, nor do they show that a final agreement is imminent. On an earnings call on October 21, Crown Castle CEO Chris Hillabrant was asked whether the company was discussing leases with SpaceX, Amazon or satellite communications providers. Hillabrant said, "You can assume we’re talking to all parties," declining to discuss specific customers.
SpaceX is seeking to combine space coverage with ground infrastructure in its connectivity plan: the Federal Communications Commission approved the launch of 15,000 satellites designed to provide phone service directly to devices. The commission’s decision, issued on January 9, 2026, authorized the addition of 7,500 second-generation satellites, bringing the total authorized for the second-generation constellation to 15,000 satellites worldwide. The commission said the decision enables direct-to-cell connectivity outside the United States and supplemental coverage within it. In a statement cited by Bloomberg, Elon Musk said the company would build ground networks to provide broadband connectivity where SpaceX and Starlink are allowed to operate. That places the site talks within a strategy combining satellites and cell sites, without turning them into completed agreements.
Cost estimates point to the scale of financial commitment required to enter the ground network market nationwide. Reuters reported in its October 22 report that TD Cowen estimated a ground network covering the United States would cost more than $80 billion, requiring many years and billions more in spending. This means access to tower sites is one part of a path that requires considerable time and investment, as well as available infrastructure. AT&T CEO John Stankey said building a converged, nationwide network takes time, adding, "It’s not something that happens overnight." The cost estimates and Stankey’s remarks set a timeline and financial scale for the potential competition raised by the talks.
The discussions come as AT&T posted strong operating results in the third quarter of 2026, according to Fierce Network, citing the company. It added 379,000 net postpaid phone subscribers, average revenue per user reached $58.90, and the churn rate was 0.92%. Stankey said growth in mobile data traffic and combined service revenue, up 3.8% year over year, contributed to the company’s best performance in more than four years. These figures provide a backdrop to AT&T’s performance before the report’s impact emerged in after-hours trading, and do not change the fact that the stock closed at $22.74 on October 22 after closing at $21.91 the previous day. The next step cited in the report is SpaceX’s effort to secure access to the sites, while the report gave no timeline for an agreement or the launch of a nationwide ground network.