Verizon Faces Worst Day Since 2002 as SpaceX Telecom Plans Hit Stocks

Verizon shares fell about 7% Friday, putting the stock on track for its steepest one-day decline since 2002 as SpaceX’s planned expansion into mobile services pressured major U.S. telecom companies.

T-Mobile shares dropped 12% and AT&T fell about 10%, while SpaceX shares gained about 1%. The selloff followed SpaceX’s agreement Thursday to acquire a nationwide spectrum portfolio from Grain Management.

The portfolio includes up to 14 megahertz of paired spectrum in the 800 MHz band. SpaceX plans to use the spectrum to expand Starlink, its satellite internet service, into mobile network services.

Federal Communications Commission Chair Brendan Carr said competition for spectrum would benefit consumers. “We’re probably going to bring over $100 billion of spectrum into the market over the next two years,” Carr said.

The FCC will oversee approval of the transaction as SpaceX seeks a larger role in the U.S. wireless market.