The purchase of spectrum by Starlink in the United States causes declines in European operators. Telefónica drops by 2.7% and Deutsche Telekom plummets by over 6%.
The entry of SpaceX into the mobile phone business through Starlink has shaken the shares of major European operators. Telefónica fell by 2.7% this week, while Deutsche Telekom collapsed by more than 6% this Friday, according to merca2.es. In the US market, AT&T and Verizon also recorded significant declines on Thursday and Friday sessions.
The stock market movement responds to SpaceX's announcement of purchasing spectrum from Grain Management, a firm specialized in digital infrastructure. The operation, which still requires approval from the Federal Communications Commission (FCC), includes a portfolio of licenses for up to 14 megahertz of paired spectrum in the 800 MHz band. With this low-band spectrum, Starlink Mobile aims to address one of the main technical challenges to becoming a relevant mobile operator in the United States.
“Very important,” described Elon Musk, CEO of SpaceX, in a post on X.
The impact is not limited to Telefónica. In Europe, Orange fell by 2.5% and Vodafone in the UK by 3.7%, although this latter figure does not affect the brand in Spain, operated by Zegona. In the United States, AT&T and Verizon dropped by 7% and 6% respectively in after-hours trading, while T-Mobile also suffered significant declines.
Analysts are already warning of increased competitive pressure. Banco Sabadell rates the news as negative for telecoms in general and for Deutsche Telekom in particular, given its exposure to T-Mobile US. Meanwhile, Bankinter considers it bad news for the sector in the United States, as SpaceX, through Starlink Mobile, will become direct competition and could capture a significant market share.
For now, the announcement is limited to the North American market and there are no plans for Starlink Mobile to land in Europe. Expansion would require approval from regulators in each country and the European Union. The exposure of European operators to the US market is limited, so market concerns are more long-term. Analysts expect the situation to normalise in the short term.
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