SpaceX's Threat to Big 3 Telecoms Seen as Overstated
Dow Jones
2 hours ago
1349 ET - The sell-off in AT&T, Verizon, and T-Mobile US following SpaceX's deal to buy cellular spectrum licenses from investment firm Grain Management, may be overstating the competitive risks of SpaceX's mobile network play, Morgan Stanley analysts say in a note. "The Starlink Mobile disruption story could take years to play out and, even with this addition to SpaceX's spectrum portfolio, the company won't have enough spectrum to serve as a viable standalone competitor," they say. SpaceX may be well-positioned to compete in rural areas, but the company will need to substantially up its spectrum acquisitions and invest in terrestrial infrastructure to compete in densely-populated urban areas. T-Mobile slides 13%, AT&T falls 10%, and Verizon drops 9.8%. SpaceX is up 0.5%.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.