SpaceX seeks 80,000 cell sites as telecom stocks fall

SpaceX is negotiating for access to at least 80,000 cell sites in the United States, Bloomberg News reported late on October 22, 2026. The sites would give its Starlink Mobile service a ground network, the base for a possible fourth national US carrier. Investors read it as a real threat: AT&T and T-Mobile shares fell almost 8% the next day.

Bloomberg cited people familiar with the talks. It named Crown Castle as one of the tower companies involved, according to a Reuters report carried by The Globe and Mail. SpaceX and the tower operators did not immediately respond to requests for comment.

Why cell sites matter to SpaceX

A cell site is a tower or rooftop where a carrier mounts its antennas. Most of them are owned by a few tower companies, such as Crown Castle, American Tower and SBA Communications. Carriers rent space on them.

SpaceX today reaches phones from orbit. Its Starlink satellites already carry internet service to rural and thinly populated areas, Reuters notes. Satellites run into physical limits in crowded cities, though.

Verizon's chief executive, Dan Schulman, has made that argument, as quoted by 24/7 Wall St.: "It is basically not possible because of physics." The same outlet says antennas on towers would let SpaceX get around those limits.

The talks build on SpaceX's spectrum deal from earlier this month. SpaceX agreed to buy 800 MHz spectrum licenses for its Starlink Mobile plan. 24/7 Wall St. says that deal is expected to close in the first half of 2027. Low-band spectrum like this travels far and passes through walls, which suits a phone network.

How the stocks moved on October 23

Telecom shares fell on Friday, October 23, while tower companies rose. The Reuters report gave figures from during the day. The Globe and Mail's market table shows prices as of 3:59 p.m. EDT, just before the close.

Company	Reuters report, intraday	As of 3:59 p.m. EDT
AT&T	-5.6%	-7.96% ($20.93)
T-Mobile	-5%	-7.71% ($146.54)
Verizon	-1.6%	-1.19% ($44.66)
Deutsche Telekom	-3.2%	-4.15% (US shares)
Crown Castle	+11.6%	+9.06%
American Tower	+4.9%	+4.08%
SBA Communications	+4.6%	+3.57%
SpaceX	+1.7%	+1.89% ($147.49)

AT&T hit its lowest level in more than three months, Reuters reported. Deutsche Telekom owns more than 50% of T-Mobile.

T-Mobile's fall stands out. It already works with Starlink on a direct-to-cell service, which sends texts and data from satellites to ordinary phones. Its chief executive, Srini Gopalan, has called the satellite service "a complementary category," according to 24/7 Wall St.

What analysts and carriers say

Analysts at Bernstein urged patience on the threat itself. "The competitive impact may still be years away," they wrote, as quoted by Reuters. They added that the prospect "is likely to remain an overhang on sector sentiment." Bernstein also said a deal to rent capacity on an existing carrier's network may not appeal to the carriers.

AT&T's chief executive, John Stankey, has played down the spectrum deal. "I wouldn't over rotate on what I would call one carrier of low band spectrum," he said, per 24/7 Wall St.

Reuters notes that rivaling the big carriers would take years and a ground network. Starlink starts with a large customer base. 24/7 Wall St. puts it at more than 13.6 million consumer subscribers worldwide.

What this means for developers

For teams that buy mobile service, a fourth national carrier would be a new bargaining chip. Nothing changes this year, though. The spectrum deal is not expected to close before the first half of 2027, and no tower agreement has been announced.

If you build connected devices, watch which network SpaceX actually builds. Satellite coverage plus tower coverage could suit trackers, sensors and vehicles that roam between cities and empty land. Ask any Starlink Mobile sales team where coverage comes from towers and where it comes from satellites. Speeds and delays are likely to differ between the two.

For the carriers, the risk is pricing pressure. A well-funded new rival tends to push plan prices down. Budget holders renewing multi-year mobile contracts may want shorter terms until the picture is clearer.

Watch T-Mobile's next earnings report for its first response. Also watch for any signed deal with Crown Castle or another tower company, since that would turn a report into a plan.