AT&T CEO Says SpaceX Mobile Entry Won't Erode Market Share Near Term

AT&T CEO John Stankey said on October 21 that SpaceX is unlikely to erode the carrier's market share in the near term, pushing back on investor concerns over new competition in U.S. mobile communications. Stankey said matching the network quality of incumbent carriers would take years and substantial investment. The concerns followed SpaceX's October 8 announcement that it will acquire nationwide 800MHz spectrum licenses from Grain Management, securing up to 14MHz of paired spectrum. The companies did not disclose terms; The Wall Street Journal reported SpaceX will pay about $8 billion in cash. The deal awaits Federal Communications Commission approval. SpaceX aims to expand Starlink Mobile coverage and improve indoor reception. The low-band 800MHz spectrum travels farther and penetrates walls and trees better, helping SpaceX combine terrestrial mobile networks with satellite service. Verizon noted that acquiring spectrum is only a first step and that SpaceX must still complete network construction before offering service.