SpaceX spectrum deal sends Deutsche Telekom shares falling 7%

Deutsche Telekom Shares Plunge 7% After SpaceX Spectrum Deal Announcement

Market Impact and Industry Reactions

Deutsche Telekom's Stock Performance

Oct 9 (Reuters) - Shares of Deutsche Telekom were on track for their worst trading day in more than three years on Friday, after SpaceX on Thursday announced an agreement to buy a nationwide low-band spectrum license portfolio, enabling Starlink Mobile to become a major telecom operator in the US.

The German telecommunications group owns a 54% stake in T-Mobile US, which could be facing stiffer competition in the United States.

Deutsche Telekom shares, which have lost around a quarter of their value since a February high, were down 7% at 0919 GMT, at the bottom of Europe's benchmark STOXX 600 index.

Analyst Perspectives on SpaceX Entry

Risks for Telecom and Cable Stocks

"We view the news as ... an ongoing risk for the telecoms and cable stocks," Citi analysts wrote in a note to investors, adding that the risk of SpaceX emerging as a facilities-based competitor has likely contributed to these stocks' recent poor performance.

SpaceX's Potential at Upcoming Spectrum Auction

Stéphane Beyazian, analyst at ODDO BHF, expects SpaceX to be a "big contender" at the US Federal Communications Commission's 2027 spectrum auction, a bidding sale of 160 megahertz of mid-band spectrum in the Upper C-Band.

Short-Term Threat Assessment

However, he said Elon Musk's company did not pose an imminent threat to Deutsche Telekom's business.

"Without a roaming agreement with a partner, it will take years before Starlink can build and sell a good quality product," Beyazian told Reuters.

(Reporting by Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak)