SpaceX's push to expand Starlink into mobile phone services triggered a sharp sell-off in major US wireless stocks on Friday.
AT&T fell 9.8%, Verizon dropped 8.7%, and T-Mobile US slid 13.3%, according to NBC News.
Verizon recorded its largest one-day decline since 2002, while T-Mobile suffered its worst day since 2011.
The drop followed SpaceX's announcement of its Starlink Mobile strategy and new satellite approvals.
FCC Approval and SpaceX's Mobile Ambitions
SpaceX said its Starlink Mobile unit received approval from the Federal Communications Commission to launch 15,000 additional satellites.
The company said the system would combine satellite connections with terrestrial deployment to provide broader device connectivity.
Elon Musk's SpaceX described the plan as a step toward becoming a major mobile carrier in the US.
"Once we receive final FCC approval, Starlink Mobile will deploy a flexible architecture combining our satellite-to-mobile constellation in space with an advanced terrestrial deployment that can seamlessly connect devices everywhere," SpaceX said.
Starlink is SpaceX's largest revenue-generating business, with more than 12 million paying subscribers.
The service was valued at $2.2 trillion as of Friday, and the latest earnings report identified it as the company's only profitable business.
Musk called the spectrum acquisition the "last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America."
SpaceX also operates as a major government contractor for NASA and national security agencies.
"All of this is going to be really good news for the American consumer," said FCC Chairman Brendan Carr.
Analysts and Carriers Push Back
Wall Street analysts and established wireless providers questioned how quickly SpaceX could build a competing network.
Analysts said satellite coverage alone would not replace the infrastructure used by traditional carriers.
"SpaceX would likely need to build a terrestrial network using macro towers to deliver a user experience on par with traditional wireless carriers," said JPMorgan Chase analysts.
"We continue to see limited near-term risk to U. S.
wireless incumbents given the time, infrastructure and capital required to build a competitive terrestrial network," the analysts added.
UBS analysts also said SpaceX would need additional ground infrastructure because spectrum alone may not reach some indoor locations, according to NBC News.
"Acquisition of spectrum alone does not provide the network or infrastructure to offer true nationwide coverage or to compete with mobile providers," Verizon said.
Verizon said owning spectrum without a network would not create a nationwide wireless service.
AT&T did not respond to a request for comment, according to NBC News.
"I have tremendous respect for what SpaceX has accomplished in space," said John Saw, president of technology at T-Mobile.
"You can acquire spectrum in a single transaction. You cannot acquire a nationwide, high-performing wireless network overnight," Saw said.
T-Mobile previously partnered with SpaceX in 2022, but recent company materials removed some references to Starlink.
A separate wireless industry effort to expand satellite coverage did not mention SpaceX or Starlink.
