AT&T Falls 8% and T-Mobile 7.7% in One Day: SpaceX's Plan for a Fourth U.S. Carrier Just Shook Telecom Stocks

AT&T and T-Mobile just had one of their worst days in years — here is what happened

AT&T (NYSE: T) closed at $20.93 on Friday, October 23, 2026, down 7.96%, while T-Mobile US (NASDAQ: TMUS) fell 7.71% to $146.54 and Verizon (NYSE: VZ) slipped 1.19% to $44.66. The sell-off in U.S. telecom stocks followed a Bloomberg report, published late Thursday, that SpaceX is in talks to secure access to at least 80,000 cell sites across the United States to build a fourth nationwide wireless carrier. SpaceX shares rose about 1.9% on the same day.

What happened

According to Bloomberg, citing people familiar with the matter, SpaceX is negotiating with cellular infrastructure providers for the tower and rooftop sites a terrestrial network would need. No deal has been announced, and the talks themselves are unconfirmed by the companies involved — Reuters reported that tower operators and SpaceX did not immediately respond to requests for comment. This post treats the cell-site plan as a reported plan, not a signed agreement.

The market reaction was immediate and lopsided. Investors sold the three incumbent national carriers and bought the infrastructure owners who might rent sites to a new entrant. Crown Castle, identified in the report as one of the providers SpaceX was talking to, closed up about 9.1% at $85.97, and American Tower rose about 4%. AT&T's trading volume reached 84.6 million shares, about 88% above its three-month average of 45.1 million, according to The Motley Fool.

There were already clues the plan was advancing. During SpaceX's third-quarter earnings call on October 20, Chief Operating Officer Gwynne Shotwell said Starlink Mobile's monthly users jumped 37% to more than 22 million. SpaceX recently acquired a nationwide portfolio of low-band spectrum licences, and Elon Musk has said the company will be building out its terrestrial network so there is broad-based connectivity anywhere SpaceX and Starlink are allowed to operate.

Why it's blowing up

First, the U.S. wireless market has had exactly three national carriers for years, and the investment case for all three rests partly on the idea that building a fourth would cost too much for any challenger to attempt. A satellite operator that already owns spectrum, already serves more than 22 million mobile users, and can pair orbital coverage with ground sites attacks that assumption directly — especially in rural areas, where satellite coverage could supplement a terrestrial network.

Second, the incumbents were asked about it in public, and nobody shut it down. Crown Castle Chief Executive Chris Hillabrant, asked about the reports during his company's third-quarter earnings call on Wednesday, did not deny them. "You can assume we're talking to all parties," he said, as reported by Morningstar. That non-denial helped turn a rumour about talks into a story investors felt they had to price.

Third, analysts say the threat is distant but sticky. Bernstein analysts, quoted by Reuters, said the competitive impact may still be years away, but that anticipation alone, reinforced by each successive spectrum and infrastructure move, is likely to remain an overhang on sector sentiment. In other words, every new SpaceX step can pressure these stocks again, long before a single customer switches.

Key facts

AT&T close: $20.93 on October 23, 2026, down $1.81, or 7.96%; volume 84.6 million shares, about 88% above its three-month average.
T-Mobile close: $146.54, down $12.25, or 7.71%, from a $158.79 previous close.
Verizon close: $44.66, down 1.19% — a much smaller fall than its two rivals.
SpaceX: Shares rose about 1.9% on Friday.
The reported plan: Talks, reported by Bloomberg late Thursday, for access to at least 80,000 U.S. cell sites to build a fourth nationwide wireless carrier. Unconfirmed; no deal announced.
Tower operators: Crown Castle closed up about 9.1% at $85.97; American Tower rose about 4%.
Starlink Mobile: Monthly users up 37% to more than 22 million, according to COO Gwynne Shotwell on SpaceX's October 20 earnings call.

What's next

The next catalysts are concrete, not speculative: whether SpaceX announces an actual site agreement with Crown Castle, American Tower, SBA Communications or another provider; how much spectrum and capital it commits; and what AT&T, T-Mobile and Verizon say about pricing and capital plans when they next face investors. Until a deal is signed, Friday's move is the market pricing a reported threat — a serious one, backed by spectrum and 22 million mobile users, but still years from becoming a working fourth network, as Bernstein noted. This post reports what happened and why markets reacted; it is not a recommendation to buy, sell, or hold any security.

Sources

FAQ

Why did AT&T stock fall 8% on October 23, 2026?

AT&T fell 7.96% to $20.93 after Bloomberg reported that SpaceX is in talks to secure at least 80,000 U.S. cell sites to build a fourth nationwide wireless carrier, raising fears of new competition.

How did T-Mobile and Verizon do?

T-Mobile fell 7.71% to $146.54, while Verizon fell a much smaller 1.19% to $44.66 on the same day.

Has SpaceX signed a deal for 80,000 cell sites?

No. The talks were reported by Bloomberg citing people familiar with the matter; no agreement has been announced, and SpaceX and the tower operators did not immediately comment to Reuters.

Who gained from the SpaceX report?

SpaceX shares rose about 1.9%, Crown Castle closed up about 9.1%, and American Tower rose about 4%, as investors bet infrastructure owners could rent sites to a new carrier.