SpaceX Seeks Half of U.S. Cell Towers, AT&T and T-Mobile Drop 8%

Two of America's largest wireless carriers lost about 8% each on Friday on a single report. It was not about a price war or lost subscribers. It was about concrete and steel towers.

Citing unnamed sources, Bloomberg reported Thursday evening that SpaceX is in talks to access at least 80,000 cell sites nationwide. According to secondary reports, that is about half of the roughly 158,500 purpose-built towers in the U.S. Crown Castle is the only tower owner named in the talks.

What the Report Says and What It Doesn't

There is no signed contract. Bloomberg reported negotiations; SpaceX, Crown Castle and the carriers made no on-record comment. Whether any deal would be a lease or shared use is also unclear.

Crown Castle CEO Chris Hillabrant's one line leaves the picture open: "You can assume that we're talking to all parties."

The plan itself is not new. On SpaceX's third-quarter call on October 20, COO Gwynne Shotwell said Starlink Mobile aims to launch on its own spectrum in early 2028. She also said it would use Starlink installations alongside other towers.

The Market Didn't Read This as a Lease Story

It read it as a declaration of competition. SpaceX's satellite-to-phone service has so far filled gaps the carriers don't cover. Moving onto ground towers means competing head-on inside cities too.

For a tower company the math runs the other way. The tower is already standing and already maintained, so each added tenant flows almost straight to profit. That is why Crown Castle's gain mirrors the carriers' drop.

The scale can be calculated. Based on closing prices and market values, our math puts AT&T's loss at about $12B and T-Mobile's at about $13B. Crown Castle gained about $3B.

The $25B lost is more than six times the estimated annual rent. The market wasn't repricing tower rent; it was repricing the carriers' future pricing power. It is an example of the money flow explained in our sector rotation guide.

The Second Front at the FCC

The carriers were also on defense in Washington the same week. FCC Chairman Brendan Carr's October 8 draft opens 482 MHz of new spectrum for satellite-to-phone service and raises eligible bands from five to 13.

CTIA, the carriers' trade group, asked in an October 22 letter that the 2.5 GHz and 3.45 GHz bands be removed from the draft. According to secondary reports, those two bands make up 290 MHz of the 482 MHz. The draft is not yet binding; the vote is at the October 29 open meeting.

The Part That Doesn't Fit the Story

Verizon lost only 1.20% on the same report; the sources don't explain the gap. The timeline is also long: the Grain spectrum transfer is expected in the first half of 2027, the commercial launch in 2028.

On October 9, AT&T CEO John Stankey argued that SpaceX only closes coverage gaps. A SpaceX that moves onto towers weakens that defense.

"solving the last 2%, not trying to come up with a new way to solve the 98%."

The two charts below show AT&T and SpaceX over the past month. The charts are live and the range counts back from today.

The two stocks reacted to the same news in opposite directions; the spectrum and tower reports showed up as a premium for SpaceX and a discount for the carriers.

What It Means for Investors

• The market priced a report of talks, not a signed contract; part of the carriers' loss could reverse if no first deal arrives.
• AT&T and T-Mobile are under pressure from pricing-power risk, while Crown Castle and American Tower benefit from the prospect of a new tenant.
• The date to watch is October 29: whether the FCC keeps the 2.5 GHz and 3.45 GHz bands in the draft will show the carriers' lobbying power.
• The risk to the thesis is that SpaceX's tower talks never turn into signatures, or that the 2028 target slips again.

Colophon: Compiled from Bloomberg's exclusive as relayed by Dow Jones, Forbes, Moneywise and The Motley Fool. Closing prices match across Motley Fool and Moneywise. The market-value loss is our own calculation from closing prices and MarketScreener data. Details of the FCC draft rely on secondary reports. Per-tower rent is a Goldman Sachs estimate; the build cost is a TD Cowen estimate. The Grain spectrum value relies on WSJ reporting.