SpaceX is reportedly seeking at least 80,000 US cell sites, and tower stocks are rallying
Bloomberg News reported SpaceX is in talks with tower owners including Crown Castle for at least 80,000 US sites. No signed lease has been reported, and the companies haven't confirmed the talks.
By Marcus Rodriguez ·
For information only, not investment advice. Prices delayed.
Tickers: CCI, AMT, T, TMUS, VZ
SpaceX is in talks with cellular infrastructure companies to secure access to at least 80,000 sites across the United States, Bloomberg News reported on Thursday, citing people familiar with the matter, according to Reuters. The talks are unconfirmed: American Tower declined to comment and SpaceX did not immediately respond, Investing.com reported.
Crown Castle ($CCI) is one of the companies in those talks, according to the report. Asked on Crown Castle's Wednesday earnings call about leases with SpaceX, Amazon or other satellite providers, CEO Chris Hillabrant said, "You can assume that we’re talking to all parties," and declined to discuss specific customers.
The 80,000 sites would equal half the 158,500 purpose-built US cell towers operating last year, according to the Wireless Infrastructure Association. Per the report, the deals could reach into the billions and would potentially solidify SpaceX's path toward a fourth nationwide wireless carrier.
Crown Castle was up 9.43% at $86.26 and American Tower ($AMT) up 3.24% at $187.46 as of Oct 23, 2:05 PM ET. The carriers were lower: AT&T ($T) down 6.51% at $21.26, T-Mobile ($TMUS) down 6.05% at $149.19 and Verizon ($VZ) down 1.62% at $44.47, at the same time.
SpaceX also has a spectrum deal pending: Grain Management said on Oct. 8 that SpaceX will acquire its nationwide 800 MHz portfolio, subject to FCC approval.
It won't be quick. TD Cowen estimated a nationwide terrestrial network would cost more than $80 billion and take many years. Truist's Matthew Niknam said the talks fall "far short from actual MLA’s (master lease agreements) being signed," but sees the news "as another firm positive for the Towers."
Sources
- SpaceX seeks access to 80,000 US cell sites for wireless network, Bloomberg News reports, Reuters (via Investing.com)
- SpaceX in talks with Crown Castle to secure 80,000 US cell sites, Investing.com (Bloomberg News report)
- SpaceX cell-site ambitions lift tower stocks and weigh on carriers, Investing.com
- Grain Management announces definitive agreement to sell nationwide 800 MHz spectrum portfolio to SpaceX, Grain Management
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