T‑Mobile’s chief executive doubled down on his refusal to partner with SpaceX, sending the rocket maker’s shares lower.
Key points
- T‑Mobile’s CEO says an MVNO deal with SpaceX would not add customers, distribution channels, or new capabilities.
- SpaceX is seeking spectrum and access to tens of thousands of U.S. cell sites to build a hybrid satellite‑ground network.
- Retail investors on StockTwits grew more bearish toward SPCX following the earnings‑call remarks.
Shares of Space Exploration Technologies Corp. (SPCX) slipped 1% overnight, falling to $145.23 on Wednesday, after T‑Mobile chief executive Srini Gopalan reiterated that the carrier sees no room for a mobile‑virtual‑network‑operator (MVNO) arrangement with SpaceX.
During T‑Mobile’s third‑quarter earnings call, Gopalan explained that any MVNO partnership must deliver new customers, additional distribution channels, or distinct capabilities. He asked whether an MVNO would expand the total addressable market or provide new capabilities, and concluded that SpaceX’s proposal did not meet those criteria.
Gopalan’s rationale
SpaceX, meanwhile, is pursuing a hybrid network that blends its Starlink satellites with terrestrial infrastructure. The company recently agreed to acquire an 800 MHz spectrum portfolio from Grain Management, pending FCC approval, and is reportedly in talks with tower owners such as Crown Castle to access at least 80,000 U.S. cell sites.
Other carriers have voiced similar concerns. Deutsche Telekom, T‑Mobile’s parent, warned that a SpaceX MVNO could undercut retail pricing, while AT&T’s John Stankey highlighted incumbents’ extensive spectrum holdings. Verizon’s Dan Schulman said he sees no benefit to extending an MVNO deal to a satellite provider, estimating that building a competitive ground network would cost $300‑$500 billion over several years.
SpaceX’s hybrid network plan
Retail sentiment on StockTwits turned bearish after the comments, with the volume of messages about SPCX rising 33% in 24 hours. One user warned of a potential price drop to $120‑$130, while another pointed to SpaceX’s $89.9 billion cash position as a buffer for its network build‑out.
Reader questions
What is an MVNO?
An MVNO (mobile‑virtual‑network‑operator) sells wireless service by purchasing wholesale access to another carrier’s network rather than owning its own spectrum or infrastructure.
Why did T‑Mobile reject the SpaceX MVNO proposal?
T‑Mobile’s leadership said the proposal did not meet its criteria for incremental customers, new distribution channels, or additional capabilities, and it sees no competitive advantage from such a partnership.
What is SpaceX’s alternative to an MVNO deal?
SpaceX is pursuing a hybrid network that combines Starlink satellite broadband with terrestrial infrastructure, including acquiring 800 MHz spectrum and seeking access to at least 80,000 U.S. cell sites.
Source: finance.yahoo.com
