Elon Musk says the 800MHz band trade is an earthquake, three major telecom stocks plummet after hours

According to Woofun AI, SpaceX (SPCX.US) CEO Elon Musk has called the company’s acquisition of the 800 MHz band a “seismic” event in the US satellite mobile communications field, marking a key piece falling into place in its plan to build a nationwide mobile signal coverage network.

This strategic move has quickly triggered a chain reaction in the capital markets, severely challenging the defensive logic of traditional telecom giants. On the social platform X, Musk quoted Tesla (TSLA.US) investor Sawyer Merritt’s view, emphasizing that this low-frequency spectrum enables “better indoor signal coverage” and can penetrate walls and other obstacles. In response to skepticism from Social Capital founder Chamath Palihapitiya, Musk replied that while ordinary observers may underestimate this development, industry insiders recognize it as a turning point in the spectrum competition. On the technical side, SpaceX has acquired a total of 14 MHz of paired spectrum from Grain Management, intended to complement its existing 2 GHz spectrum and solve Starlink Mobile’s connectivity challenges inside buildings. On the regulatory front, the US Federal Communications Commission on Tuesday authorized SpaceX to deploy 15,000 Mobile Satellite Service (MSS) devices, without the need to pay leasing fees to ground operators.

However, AT&T (T.US) Inc. CEO John Stankey holds a negative attitude, pointing out that the technology still relies on femtocells to improve indoor coverage and faces regulatory obstacles, making it highly unlikely for SpaceX to launch mobile communication services.

This divergence in technological routes is essentially a direct clash between the satellite direct-link and ground base station infrastructure models.

The market is voting with real money—telecom stocks have taken a heavy hit while SpaceX has made gains against the trend. According to data compiled by Woofun AI, AT&T’s stock price plunged 6.59% after hours to $23.23, after previously closing up 1.63% during the trading session; Verizon (VZ.US) Communications Inc. fell 5.70% after hours to $43.71; T-Mobile (TMUS.US) US Inc. fell 6.10% after hours to $160.86.

In contrast, SPCX shares rose 3.11% in after-hours trading to $165.57. Gene Munster, co-founder of Deepwater Asset Management, pointed out that a vertically integrated smartphone with Starlink functionality may soon be launched, and the capabilities and cost advantages it provides will pose a direct competitive threat to Apple (AAPL.US) and Samsung Electronics. Even though Musk has denied that a smartphone is about to be released, the market clearly sees SpaceX as a potential disruptor in the hardware ecosystem, and this difference in expectations has led to a rapid flow of funds from traditional telecom stocks into satellite technology stocks.

In the long run, the Starlink plan is attempting to reshape the US telecom operators’ market boundaries through vertical integration of spectrum resources. Acquiring low-frequency spectrum not only solves the physical bottleneck of signal penetration but also establishes regulatory legitimacy for operations independent of ground networks.

Despite traditional operators countering with claims of technical limitations and regulatory barriers, the sharp fluctuations in the capital market indicate that investors have begun to re-evaluate the satellite mobile communications sector’s potential to replace traditional cellular networks. As deployment of the 15,000 MSS devices advances, and the possibility of competition from smart terminals looms, the competitive landscape of the US telecom market is shifting from a simple contest over ground coverage to a multidimensional, integrated air-space-ground game.