European telecommunications shares declined on Friday after Space Exploration Technologies (NASDAQ:SPCX), known as SpaceX, announced an agreement to acquire US wireless spectrum licences, potentially expanding Starlink’s role in the mobile communications market.
The proposed acquisition would give SpaceX access to frequencies suitable for terrestrial mobile networks, complementing its existing satellite infrastructure and raising questions about the longer-term competitive position of established telecommunications operators.
Deutsche Telekom (TG:DKT) recorded the largest decline among the companies cited, falling 7% by 07:27 GMT. Vodafone (LSE:VOD) dropped 3.1%, while Orange (EU:ORA) declined 2.6%.
Telefónica (TG:TNE5) fell 2.5%, Koninklijke (EU:PHIA) lost 2.1%, and BT Group (LSE:BT.A) slipped 1.4%.
US telecommunications companies also experienced share price declines in extended trading on Thursday, following the initial report of the transaction by The Wall Street Journal.
AT&T (NYSE:T), Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) all traded lower after details of the proposed acquisition emerged.
SpaceX has agreed to purchase a nationwide US spectrum portfolio from Grain Management, an investor specialising in digital infrastructure.
The transaction remains subject to approval from the Federal Communications Commission (FCC).
The portfolio includes up to 14 megahertz of paired spectrum in the 800 MHz frequency band, which is suitable for providing mobile connectivity through terrestrial infrastructure.
The acquisition could allow SpaceX to combine its satellite-based Starlink network with conventional ground-based wireless services.
In its announcement, SpaceX said: “This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the U.S.”
SpaceX Chief Executive Elon Musk described the agreement as a “very big deal” in a post on X.
The company indicated that the acquired frequencies would support “an advanced terrestrial deployment”, extending connectivity into locations where satellite signals may be limited, including inside buildings.
Unlike spectrum primarily allocated to satellite communications, the licences involved in the proposed transaction can support services delivered through mobile phone towers.
The announcement follows an FCC decision earlier in the week authorising SpaceX to launch up to 15,000 satellites dedicated to mobile communications.
SpaceX has already provided basic wireless connectivity in remote areas through a partnership with T-Mobile for more than a year.
The company has also been upgrading its satellite network with newer spacecraft designed to support greater data capacity.
Its latest proposed acquisition follows an agreement reached last year to acquire satellite spectrum rights from EchoStar in a cash-and-stock transaction valued at approximately $17 billion.
SpaceX subsequently added $2.6 billion of EchoStar’s terrestrial spectrum licences.
Competitive developments in the US mobile market have also continued.
Last week, T-Mobile, AT&T and Verizon established a joint venture intended to expand satellite connectivity in underserved areas, without Starlink’s participation.
T-Mobile has also removed references to Starlink from promotional materials for its T-Satellite service.
These developments suggest changes in the commercial relationships between satellite operators and established mobile network providers, although the longer-term implications remain uncertain.
The decline in European telecommunications shares coincided with the announcement of SpaceX’s plans, but the direct financial impact on European operators has not been established.
The proposed acquisition is focused on US spectrum rights, and any broader competitive consequences will depend on regulatory approval, network deployment and the development of SpaceX’s mobile services.
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