SpaceX Makes Big Play to Become a Wireless Carrier

SpaceX reached a deal to buy cellular spectrum licenses from investment firm Grain Management, its biggest move yet into a wireless market dominated by traditional telecom companies. The Elon Musk-led space company will pay about $8 billion in cash for the assets. The U.S. licenses, which are in the 800-megahertz band, are tailored for wireless service from cellphone towers rather than satellites. The spectrum could serve SpaceX’s stated ambition of moving its Starlink satellite service beyond broadband into the wireless market to compete with the likes of AT&T and Verizon. U.S. cellphone carrier stocks sank on the news. Shares in AT&T, Verizon and T-Mobile all fell more than 6 percent in post-close trading. SpaceX shares climbed about 3 percent to $165.10 after hours.