SpaceX (NASDAQ: SPCX) just sent shockwaves through shares of legacy telecom giants, with some stocks experiencing historically large drops after the firm’s latest announcement. SpaceX has agreed to acquire low-band wireless spectrum licenses from Grain Management, with reports indicating a purchase price near $8 billion.
This move signals SpaceX’s ambition to compete with the top dogs in telecom when it comes to offering cell phone coverage. SpaceX purchased a spectrum that effectively penetrates buildings. This contrasts with its Starlink satellite service, which requires an unobstructed view of the sky to provide a stable connection.
