The telecommunications sector was jolted Friday after SpaceX announced it would acquire a nationwide spectrum portfolio from Grain Management to expand Starlink into mobile service. The move could make SpaceX a direct competitor to established wireless carriers.
Verizon shares fell 8.75%, their worst single-day drop since 2002. T-Mobile shares dropped 13.27%. AT&T shares declined 9.81%.
The sell-off reflected concerns that Starlink could disrupt the industry as a formidable new competitor. Its entry could put pressure on the enterprise, rural, and emergency-service subscriber bases of existing companies, including America Movil and others in the sector.