SpaceX Is Coming for the Phone Companies, but the Tower Owners Win Either Way
SpaceX is reportedly chasing 80,000 cell towers to build a fourth nationwide wireless carrier, and the move sent shockwaves through the stocks of every major player except the ones that actually own the towers.
Bloomberg News reported on October 22, 2026, that SpaceX (NASDAQ:SPCX | SPCX Price Prediction) is in talks for access to about 80,000 U.S. cell sites to build a fourth nationwide wireless carrier. That is roughly half of the 158,500 purpose-built towers operating in the U.S. last year.
| Stock | Oct. 22 Close | Session | Market Value | After Hours (7:59 p.m. ET) |
|---|---|---|---|---|
| Crown Castle | $78.83 | 0.23% | $33.54 billion | $86.29 (9.46%) |
| American Tower | $181.57 | 2.21% | $84.60 billion | $189.35 (4.28%) |
| Verizon | $45.20 | 3.76% | $187.80 billion | $43.51 (-3.74%) |
| AT&T | $22.74 | 3.79% | $153.19 billion | $21.99 (-3.30%) |
| T-Mobile | $158.79 | 3.28% | $170.33 billion | $151.91 (-4.33%) |
| SpaceX | $144.75 | -9.14% | $1.97 trillion | $146.44 (1.17%) |
After the close, Crown Castle (NYSE:CCI) and American Tower (NYSE:AMT) rose, while Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS) gave back their regular-session gains. SpaceX edged up after a steep daytime drop, which suggests investors had already priced in the news. After-hours trading is thin, and these moves can reverse at the open on October 23.
Only the Spectrum Deal Is Signed
No tower lease has been signed. The report relies on unnamed sources; SpaceX has not commented, and Crown Castle has not confirmed any SpaceX deal. The potential leases reportedly could run into the billions of dollars.
On October 8, SpaceX agreed to buy Grain Management’s portfolio, which includes 14 MHz of paired nationwide 800 MHz spectrum. The deal is expected to close in the first half of 2027, pending regulatory approval. Neither company disclosed a price, but reports put it at about $8 billion.
Elon Musk said, “This is the last critical piece of the spectrum puzzle needed for SpaceX.” Spectrum still needs towers.
Crown Castle Has the Most to Gain
Crown Castle owns about 40,000 U.S. towers, and T-Mobile, AT&T and Verizon supply 93% of its site rental revenue. A fourth large tenant would reduce that dependence for a stock that is down 15.16% over one year and 43.67% over five.
On October 21, Crown Castle’s chief executive said the company is “talking to all parties” but declined to discuss specific customers.
American Tower owns about 42,000 U.S. towers out of more than 148,000 sites worldwide, and it also runs CoreSite data centers. A SpaceX lease would therefore be a smaller share of its business. Its shares are down 24.87% over five years.
The carriers face pricing pressure, customer losses and higher network spending. AT&T fell 6.5% after its October 21 report even though it beat revenue estimates and raised its outlook. Scotiabank cut its T-Mobile target to $212 from $217. T-Mobile is down 20.08% year to date, while Verizon is up 18.54%.
Why the After-Hours Rally Could Fade
TD Cowen estimates that a nationwide terrestrial network would cost more than $80 billion and take many years to build. On October 20, SpaceX also said it plans to put Starlink towers on real estate from existing Starlink facilities, which could reduce how many towers it leases.
DISH, the last company to try to become a fourth carrier, walked away from its towers, and that will cut Crown Castle’s 2026 site rental billings by $220 million. Musk sees “a clear path to several hundred billion dollars a year in connectivity revenue,” but SpaceX’s connectivity unit brought in $5.20 billion in the third quarter.
What Crown Castle’s After-Hours Jump Is Pricing In
At $86.29, Crown Castle is pricing in a tenant that has signed nothing. It also carries net debt of 6.5x annualized adjusted EBITDA, a measure of cash earnings.
TD Cowen raised its target to $98 from $92, while BMO cut its target to $91 from $93.
American Tower carries less risk from these talks. It would collect rent if SpaceX leases towers, and its international towers and data centers would buffer the stock if the talks fail.
The test is a filing that discloses a signed SpaceX master lease, meaning a contract that covers many sites. Without one, expect Crown Castle to drift back toward its $78.83 close. Listen for SpaceX questions on Verizon’s October 26 call, American Tower’s October 27 call, and T-Mobile’s October 28 call.
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Omor Ibne Ehsan is a writer at 24/7 Wall St. He is a self-taught investor with a focus on growth, cyclical, and dividend equities that have strong fundamentals, value, and long-term potential. He also has an interest in high-risk, high-reward investments such as penny stocks.
