T-Mobile US (NASDAQ: TMUS) shares fell following a report that analysts are assessing the competitive threat posed by SpaceX’s Starlink Mobile. The concerns were triggered by news that SpaceX agreed to acquire a nationwide portfolio of 800 MHz low-band spectrum from Grain Management. The deal covers up to 14 megahertz of paired spectrum and requires approval from the Federal Communications Commission.
According to the report, Deepwater Asset Management co-founder Gene Munster suggested that a SpaceX-built phone running on its own network could undercut wireless carriers on price and offer features they currently lack. Scotiabank analyst Maher Yaghi responded by lowering his price targets for all three major U.S. carriers. Yaghi cut T-Mobile’s target to $212 from $217, Verizon to $50 from $51.50, and AT&T to $26.50 from $27.50.
The analyst noted that it remains unclear whether the acquired spectrum can economically support traffic in densely populated markets, even when combined with EchoStar’s approximately 65 MHz of spectrum holdings. Yaghi identified weaker pricing power and customer-retention economics as the primary long-term risks, rather than immediate market-share losses. The analyst added that the eventual impact of SpaceX's service will depend on factors including terrestrial deployment, carrier offload agreements, device compatibility, service quality, and pricing.
At the time of publication, T-Mobile US shares were down 11.97% at $150.79.
