Initial Take on SpaceX Spectrum Announcement and E&C Readthrough

Grain Management announced (press release) an agreement to sell its nationwide 800 MHz spectrum portfolio to SpaceX, subject to FCC approval and customary closing conditions. Overall, we think increased competition within the ecosystem could be a modest positive for telecom infrastructure companies in our coverage (e.g., MTZ, ITG) given the potential for incremental network investment. Additionally, we think the announcement points to integration between terrestrial and satellite networks, which we think could reduce prior investor concern regarding satellite adoption potentially displacing traditional wireline/wireless infrastructure investment over time.