SpaceX (SPCX.O): Elon Goes Low (Band)… Implications Across the Telco Ecosystem

Morgan Stanley update on SpaceX (SPCX.O/SPCX US, Overweight, $300 price target). SpaceX announced it agreed to acquire 100% of Grain Management's nationwide 800MHz portfolio (up to 14MHz paired), adding low-band coverage for Starlink Mobile's in-building service; closing is subject to FCC approval. Paired with the ~65MHz of mid-band spectrum to be acquired from EchoStar (Nov 2027), Starlink Mobile would be the first operator to deploy both satellite and terrestrial spectrum in one network, though its total low+mid-band holdings (~77MHz) remain only ~20-25% of the Big 3 carriers'. The firm estimates Starlink Mobile reaching ~1-2mn subs in 2030, ~9mn in 2032 (~5-6% of market), and >32mn in 2035 (~7%). The deal is good for spectrum owners (ECHO, VSAT, SIRI), incrementally constructive for towers (AMT, CCI, SBAC), and a rising competitive threat to the Big 3 telcos (likely rural first). Terms undisclosed; precedent transactions suggest a possible $6-8bn range ($1.25-1.70 per MHz-POP).