Starlink Mobile spectrum deal sends telecom shares lower

Shares in major US wireless carriers fell in after-hours trading Thursday after SpaceX said it had agreed to buy nationwide low-band spectrum for its Starlink Mobile phone service.

T-Mobile shares fell as much as 7.6% in extended trading, while Verizon dropped 7% and AT&T lost 7.75%.

SpaceX said the airwaves would help Starlink Mobile reach phones inside homes and offices, where satellite connections can struggle to pass through walls. The company said the purchase removes one of the last obstacles to Starlink Mobile becoming a full US carrier, and said most phones already on the market can use the new frequencies.

SpaceX plans to combine satellites with cell towers on the ground to offer a network designed to work indoors, outdoors and in rural areas without mobile coverage.

The company also said US regulators this week approved its plan to launch up to 15,000 new satellites designed to connect directly to ordinary smartphones. SpaceX said those satellites would offer more than 100 times the capacity of its current fleet.

Starlink already offers limited texting and data to phones in areas without cell coverage through a partnership with T-Mobile.