Starlink Targets the US Mobile Communication Market, SpaceX (SPCX.US) Opens New Growth Opportunities: Wall Street Focuses on the Reshaping of the Telecom Industry Landscape

According to Smart Finance APP, SpaceX (SPCX.US), the $2 trillion market cap leader in “AI + Space Exploration” founded and helmed by Elon Musk, is reportedly planning to make a heavyweight acquisition of the nationwide 800MHz spectrum portfolio held by Grain Management, involving up to 14MHz of paired spectrum—a key step towards becoming a full-scale mobile communications carrier. This major deal initiated by SpaceX still requires approval from the Federal Communications Commission (FCC), and media sources familiar with the matter reported the transaction value to be approximately $8 billion. As a result, the market swiftly reassessed the competitive moat of traditional telecom operators. The three major US carriers—AT&T, Verizon, and T-Mobile—saw their share prices plunge in after-hours trading on Thursday, especially AT&T, which has notably refused to collaborate with SpaceX in recent years; its stock fell as much as 6% at one point.

The news of this major acquisition plan comes at a time when SpaceX’s share price has rebounded sharply, catalyzed by robust plans related to space AI data center construction and significant ground-based AI computing infrastructure orders—since early August, SpaceX’s stock has surged nearly 50% from its post-listing lows. Although SpaceX closed down 4.19% at $160.57 in regular Thursday trading, it has still rebounded 48.3% from the low of $108.27 on August 5; after the spectrum deal was announced, the stock quickly recovered in after-hours trading, and as of 16:30 Beijing time on October 9, SpaceX was quoted at $166.47 in pre-market trading, rallying nearly 4%.

The technical value of the latest acquisition plan lies in enhancing the “Starlink” satellite internet and terrestrial network to create a more complete Starlink network coverage system. Starlink’s satellite network excels at covering remote regions and terrestrial communication blackspots, while the addition of low-frequency spectrum will help improve signal penetration and indoor coverage in buildings and complex environments through terrestrial deployments. In short, the satellite network provides wide-area coverage and fills terrestrial gaps, while low-frequency terrestrial networks enhance penetration inside buildings and complicated environments; the two are complementary.

Paired with its existing satellite capacity, SpaceX is completing its upgrade from “occasional emergency connections” to “daily-use mobile services.” Grain’s official announcement also defined the transaction as integrating terrestrial and space connectivity. Meanwhile, the FCC has greenlit SpaceX to deploy a new constellation of 15,000 direct-to-cell satellites, opening capacity for expanding its mobile business. From an investment logic perspective, expanding the coverage scenarios could enable Starlink to graduate from a supplemental service provider to direct competition for primary carrier users, home broadband, and enterprise communication budgets. The core bullish thesis for SpaceX’s long-term rise according to Goldman Sachs, JP Morgan, Citigroup, and TD Cowen is as follows: in the short term, surging revenues are driven by ground-based AI compute leasing, while medium- and long-term growth is underpinned by satellite connectivity, high-frequency launches, space AI data centers, and AI application businesses.

In the rise of satellite internet as a “new king,” is Starlink about to change the global telecommunications game?

Market commentary firm The Kobeissi Letter posted on X that SpaceX’s acquisition of telecom assets marks “one of the largest disruptions in the history of the telecom and communications industry.”

On Thursday, SpaceX (SPCX.US), led by Elon Musk, announced it is moving towards competing with major U.S. mobile carriers, revealing it has agreed to acquire up to 14MHz of paired spectrum in the 800MHz band. The news sent shockwaves throughout the telecom industry.

Following the announcement, shares of AT&T (T.US), T-Mobile US (TMUS.US), Verizon (VZ.US), and another broadband giant, Comcast (CMCSA.US), all tumbled, and remained under pressure in pre-market trading Friday.

Telecom industry experts and Wall Street strategists broadly believe Starlink’s formal entry into telecom will completely disrupt the sector’s entrenched market share structure.

Investor and social media opinion leader Sawyer Merritt wrote on X: “Starlink Mobile network is about to change the rules of the game.” Starlink is acquiring spectrum licenses, taking major steps toward becoming a full-spectrum U.S. super-carrier.

The Kobeissi Letter further commented on X that this development will lead to “one of the largest disruptions in the history of the telecom and internet services industry.”

The Kobeissi Letter pointed out that for decades, the sector has suffered from insufficient competition, slow innovation, limited coverage, and declining service standards. The firm said: “SpaceX, the AI and commercial spaceflight titan under the ticker SPCX, is about to change all of that. This is a clear warning to the giants of the industry: Evolve, or be left behind.”

Analysts from well-known Wall Street investment research firm William Blair noted that existing wireless and broadband carriers have consistently questioned whether the SpaceX network can match their own service levels. The analysts said: “We expect SpaceX to roll out compelling Starlink broadband and Starlink Mobile combo plans. The company may also include Grok B2B or consumer AI app subscriptions in these packages.”

Elon Musk, CEO of SpaceX and Tesla, stated on X that this move completes “the last critical piece of the spectrum puzzle that SpaceX needs to provide comprehensive smartphone connectivity coverage in the United States.”

Currently, SpaceX offers mobile connectivity via Starlink’s Direct to Cell satellite service, partnering with US carriers like T-Mobile, allowing existing 4G LTE or higher smartphones to connect directly to satellites where there is no terrestrial cellular coverage.

It is reported that among the three major US telecom operators, T-Mobile has deeply partnered with Starlink, while AT&T has chosen Starlink’s main competitor. T-Mobile and SpaceX have an exclusive agreement using T-Mobile’s spectrum (such as the PCS band) with Starlink’s Direct-to-Cell satellites to build “space-based base stations.” AT&T, meanwhile, abstained from the Starlink alliance and instead struck a long-term exclusive commercial deal and made a direct strategic investment in the other renowned satellite communications company, AST SpaceMobile.

According to SpaceX’s 2025 progress report, more than 12 million users have connected at least once to the service; in remote or deep wilderness areas without traditional cellular coverage, over 6 million people actively use the service each month on average.

Billionaire investor Chamath Palihapitiya posted on X that this asset portfolio acquisition is “extremely significant.”

Musk stated in another post: “This might sound absolutely crazy, but I see a path for SpaceX’s valuation to surpass the scale of the current Earth economy by several orders of magnitude.”

Aaron Burnett, founder and CEO of Mach33, wrote on X that smartphones launched in 2027 and 2028 will feature chipsets natively supporting higher-throughput Starlink Mobile bands. He noted: “This is another part of the spectrum puzzle already solved, but relevant discussions occurred before SpaceX went public and thus have not attracted much attention.” To which Musk replied “Yes.”

Gene Munster, a senior portfolio manager at top asset manager Deepwater Asset Management, pondered whether Starlink would soon launch its own mobile device.

He wrote on X: “Elon says he doesn't want to make phones. But I still believe SpaceX will eventually do it.” Munster suggested a vertically integrated smartphone on the Starlink Mobile network could deliver features unmatched by other carriers and at much lower communication service costs.

He added: “This poses a bigger problem for Samsung than for Apple. Apple’s tight integration between devices and services is harder to break.”

Earlier this year, Musk said launching a Starlink phone “is not impossible.” On X, he stated a device from the company would be “very different” from current phones, with special optimization for running neural networks at the highest performance per watt.

However, Musk confirmed in February that SpaceX was not developing mobile devices at the time, quashing related rumors.

With the latest news from SpaceX, these telco stocks have been a hot topic on the Stocktwits retail investor platform. As of publication, retail sentiment around SPCX (SpaceX stock) was “bullish,” and discussion volume remained “high.” The ticker was among the platform’s most popular codes.

One user commented: “SPCX—Elon Musk’s SpaceX just took a major step, challenging the traditional US telecom industry, and stocks like AT&T, T-Mobile, and Verizon are getting hammered.”

However, another said: “VZ, T—ignore Starlink. These two companies will remain strong for a very long time.”

Meanwhile, even though AT&T stock fell, retail sentiment towards AT&T remained “bullish.”

From “filling signal gaps” to “fighting for user acquisition”: Starlink is reshaping the competitive boundaries of the telecom industry

Owning spectrum and building independent networks will boost SpaceX’s control over product pricing, customer relationships, and package design. William Blair’s equity research team projects SpaceX may launch attractive “Starlink Broadband + Starlink Mobile” bundles, possibly including Grok services. The investment implication is that by cross-selling home, mobile, and AI services, each customer’s revenue contribution is increased and customer acquisition costs are lowered.

The share price pressure on the three major US telecom operators, including AT&T, reflects market expectations of possible future customer churn, increased price competition, and higher retention spending; Starlink is highly likely to obtain a much larger addressable market for telecom services.

Wall Street’s outlook for SpaceX’s share price and core business growth prospects is clearly positive overall: Of 38 Wall Street analysts tracked by S&P Global, 30 rate the stock as “Buy” or “Strong Buy,” with an average target price of $225.61. Analysts’ core bullish investment logic for SpaceX centers on the synergy among “AI compute leasing and sales driving near-term income growth, Starlink mobile services expanding the user base long-term, and launch capacity supporting network expansion.” This spectrum acquisition further enhances the business completeness of satellite internet and communications connectivity, giving the market reason to evaluate SpaceX from a broader infrastructure platform perspective.

Anthropic has announced it will use the entire compute capacity of SpaceX’s Colossus 1, including over 300MW and 220,000+ Nvidia GPUs, directly powering Claude’s service expansion. A Google compute leasing agreement with SpaceX covers about 110,000 Nvidia GPUs and ancillary components, entailing monthly payments of $920 million from October 2026 to June 2029; the contract can be terminated with 90 days’ notice after the end of 2026. These deals highlight SpaceX’s alternative commercialization path: swiftly deploying compute power for its own large models and other developers’ needs.

After the spectrum acquisition news broke, JP Morgan maintained its “Overweight” rating on SpaceX in its latest research report, emphasizing that Starlink is moving towards a full “satellite + terrestrial” mobile network, making long-term commercialization more credible and extending its market reach to IoT, autonomous driving, and robotics.

JP Morgan noted that the planned acquisition of up to 14MHz of Grain’s 800MHz paired spectrum would enhance indoor coverage, complementing the 65MHz mid-band spectrum sought from EchoStar. Without an MVNO agreement to lease US incumbent networks, SpaceX will likely need to construct a terrestrial macronetwork to match traditional carriers’ user experience. Its low-frequency reserves remain far below AT&T’s ~90MHz, so JP Morgan expects further acquisitions, including the $2.6 billion-valued Anterix 900MHz spectrum, which is particularly well-matched to the need.

Spectrum competition is likely to extend to auctions: SpaceX may more aggressively participate in the 2027 Upper C-Band and auctions for the 1.6, 2.7, 4.4, and 7GHz bands before 2028. JP Morgan notes that the previous ~$40 billion total auction spending benchmark may be revised higher, with an optimistic scenario closer to $53 billion, equating to $0.75–$1 per MHz per covered population; the FCC’s goal of exceeding $100 billion in auction revenue by 2028 is now more achievable. The three major carriers face pressure from increased competition and spectrum purchasing costs, but terrestrial network build-out is time- and capital-intensive, limiting short-term fundamental impact.

JP Morgan also sees tower leasing as another key beneficiary. Based on 60,000–70,000 macro sites at $1,800–$2,000 per site monthly rent, full deployment would yield $1.6–$1.8 billion annual tower rents, constituting a 10%–12% incremental leasing opportunity for AMT, CCI, and SBAC. CCI stands to gain the most, followed by AMT and SBAC; site selection will depend on indoor coverage needs, and additional spectrum or denser co-location may be needed for capacity. The three major operators’ mid-term network expansion could further boost tower rents, but long-term competition might compress industry investment.

Citigroup’s analyst team believes the deal benefits SpaceX and tower operators and will continue to weigh on telecom and cable operator valuations. The core change is that Starlink, by building a nationwide network integrating “satellite + macro cell + small cell,” will compete to directly manage user relationships.

The planned acquisition of approximately 7MHz each uplink/downlink of 800MHz spectrum and the 65MHz mid-band from EchoStar are complementary; Starlink is still using 10MHz leased from T-Mobile. The FCC has approved 15,000 new 2GHz satellites and V3 backhaul bands, but if low-band spectrum is directly used on satellites, satellite design may require adjustment. Citi thus expects the terrestrial network to bear major coverage and capacity loads, supplemented by satellites in rural and other markets, with more spectrum acquisitions likely going forward.

Citi emphasizes that capacity determines the contestable market: according to their satellite model, the EchoStar deal, plus the Grain deal, plus another 40MHz Upper C-band acquisition support about 17 million, 19 million, and 28 million users respectively; with an integrated ground-space model, the latter two scenarios support about 19 million and 31 million users, equivalent to 7% and 11% of the postpaid phone market, representing $45.2 billion and $76 billion in scenario-based increases to SpaceX’s valuation, or 2% and 3% of its market cap. The high scenario would expose the three major carriers to about 13% market value risk, Charter to about 17%, and Comcast to about 3%.

Operators’ stocks have already retreated about 17% from their yearly peaks; Citi sees the risk as partly priced in, and expects no material impact on big three carrier results until at least 2029. Over the next 6–18 months, longer device replacement cycles and low churn rates can support profits; responses include a la carte pricing, mobile and broadband bundling, and network investment. Concerns about ARPU pressure from smart agents and rising spectrum investment continue to cap valuations, and operators are unlikely to offer competitive MVNO agreements in the near-to-mid term.