Verizon (VZ) shares fell 7% in after-hours trading on Thursday to $43.25 after SpaceX announced an agreement to acquire a nationwide low-band spectrum portfolio from Grain Management. The announcement also sent AT&T and T-Mobile shares sharply lower in extended trading.

The agreement covers up to 14 megahertz of paired spectrum — separate frequency blocks set aside for uplink and downlink transmissions — in the 800 MHz range. Low-band spectrum travels farther and penetrates buildings more effectively than higher-frequency signals, addressing a limitation that Starlink’s existing satellite network has faced.

SpaceX said the transaction “addresses one of the key remaining technical gaps” between Starlink Mobile and its goal of becoming a major U.S. wireless carrier. Elon Musk, SpaceX’s CEO, described the agreement as a “very big deal” in a post on X.

We announced an agreement to acquire a nationwide low-band spectrum license portfolio that will pave the way for @Starlink to become a major mobile carrier in the US. With this new spectrum and our Gen2 constellation, Starlink Mobile can ensure Americans have access to… pic.twitter.com/uVktZ0g3tu — SpaceX (@SpaceX) October 8, 2026

Investors viewed the announcement as a potential threat to Verizon’s core wireless business. Low-band spectrum is central to nationwide coverage, and the acquisition would give SpaceX a path to developing its own wireless network instead of relying only on partnerships with established phone carriers. The transaction could allow Starlink Mobile to improve building penetration and expand coverage across almost the entire U.S. population.

The announcement came one week after Verizon, AT&T and T-Mobile formed a joint venture to expand satellite and direct-to-device coverage — technology that connects standard mobile phones directly to satellites — in underserved areas. Starlink was not included in that venture, while T-Mobile has reportedly reduced references to Starlink in its own satellite-marketing materials.

Tim Farrar of TMF Associates questioned the scale of the competitive threat. He said the amount of spectrum involved remains limited and that SpaceX would need ground-based towers to provide reliable coverage in dense urban areas.

Market and regulatory context

The broader market did not provide an explanation for the telecom selloff. The S&P 500 closed up 0.1%, the Dow was roughly flat, and the Nasdaq gained 0.2%. AT&T and T-Mobile also declined sharply in extended trading, indicating that the reaction affected the broader telecommunications sector rather than Verizon alone.

The transaction still requires approval from the Federal Communications Commission before it can proceed. The SpaceX announcement came one day after the FCC said it would vote on auctioning 25 megahertz of spectrum for direct-to-device satellite services. The agency also has a further vote planned for October 29 on an additional 482 MHz of spectrum. Both proposals could benefit SpaceX and support Amazon’s satellite ambitions.

Earlier on Thursday, before the SpaceX announcement, KeyBanc reiterated its Sector Weight rating on Verizon — a rating generally indicating the stock is expected to perform in line with its industry peers. The firm cited improving indicators, including lower customer churn and higher average revenue per account, but forecast only modest revenue acceleration through year-end.

SpaceX’s own stock fell 4% during regular trading before rising about 2.5% in after-hours trading following the spectrum announcement.

Verizon’s decline left the shares well below their 52-week high of $51.68 and closer to the lower end of their annual trading range. Verizon’s third-quarter earnings report, scheduled for October 26, will provide the next update on subscriber growth and revenue trends as the company faces the changing competitive landscape.

SpaceX has not announced when Starlink Mobile services enabled by the spectrum agreement might launch. Any launch remains subject to regulatory approval.