T-Mobile Plunges 13% to 52-Week Low as SpaceX Closes $8 Billion Spectrum Deal to Launch Starlink Mobile

T-Mobile US fell roughly 13% on October 9, its worst single-day drop since 2013, after SpaceX agreed to acquire 100% of Grain Management's nationwide 800 MHz low-band wireless spectrum portfolio for approximately $8 billion in cash. The deal, announced October 8, covers up to 14 megahertz of paired 800 MHz spectrum and positions Starlink Mobile to operate as a full-scale U.S. mobile carrier. SpaceX Chief Operating Officer Gwynne Shotwell signaled plans to complement the satellite network with land-based infrastructure including cell towers and small cell nodes, a combination that would close the indoor coverage gap that had previously limited satellite services from competing head-on with traditional carriers.

The selloff swept across the entire sector. AT&T dropped approximately 10%, putting it on pace for its worst session since 2000, while Verizon shed close to 10%. The S&P 500 Telecommunication Services index fell 8.5% on the day, and the index has now lost roughly 16% over the past 30 days. T-Mobile shares touched as low as $148.12, a new 52-week low, pushing its dividend yield above the 3% mark based on its annualized payout of $4.68 per share. SpaceX, by contrast, rose 4.12% to $167.18 in premarket trading, and cell tower companies including American Tower and Crown Castle gained as analysts flagged potential new tower deployment demand from Starlink's buildout.

Some Wall Street analysts urged investors to buy the dip, arguing SpaceX still faces significant deployment and profitability hurdles before it can meaningfully challenge the three major carriers. The broader market was little affected, with the S&P 500 gaining 0.29% and the Nasdaq rising 0.55% as technology shares rebounded from the prior session's selloff.