Shares of major U.S. telecommunications companies fell sharply on Friday after reports that SpaceX is discussing access to at least 80,000 cellular sites to build a nationwide wireless network. The move comes just weeks after SpaceX acquired low-band spectrum and signals its intent to compete with established carriers, unsettling investors in the communications services sector.
AT&T shares fell 5.6%. They reached a three-month low. T-Mobile shares dropped 5%, while Verizon shares slid 1.6%.
Cell tower operators rose on the prospect of a major new tenant. Crown Castle shares jumped 11.6%, and American Tower gained 4.9%.
Analysts believe a competitive network is still years away. They expect SpaceX’s successive moves into the sector to continue weighing on sentiment toward incumbent telecom stocks.