SpaceX eyes 80,000 US cell sites

SpaceX is pursuing agreements for access to a minimum of 80,000 cell sites across the United States as it pushes to build a fourth nationwide wireless carrier. The discussions would be a significant step in expanding from its existing space-based operations into a terrestrial mobile network that would compete directly with incumbent U.S. wireless providers.

The targeted 80,000 sites would amount to roughly half of the 158,500 purpose-built cell towers that were operational in the U.S. last year. Securing such a footprint would give SpaceX a substantial physical platform for a nationwide wireless offering, complementing its satellite capabilities.

SpaceX is in talks with at least one major cellular infrastructure company to reach its cell-site goal, and has approached Crown Castle about potential arrangements. Crown Castle is among the largest U.S. owners of cellular towers, alongside American Tower and privately held Vertical Bridge, which respectively operate about 40,000, 42,000 and around 18,000 U.S. sites.

Crown Castle’s chief executive, Christian Hillabrant, said the company is talking to “all parties” when asked about potential leases with SpaceX and Amazon (AMZN), while declining to discuss specific customers. The tower operators and SpaceX did not provide further public comment on the status or terms of any potential agreements.

Shares of AT&T, Verizon and T-Mobile fell between 4% and 5% in extended trading, reflecting investor concern about the prospect of a new large-scale competitor in the wireless market.

Tower operators' shares advanced, with Crown Castle up 9% in extended trading and American Tower up 5%, as investors focused on the potential for additional leasing demand from a new large wireless tenant.

SpaceX’s own shares rose 1.4% after hours on Thursday.

By combining access to a large portfolio of U.S. cell towers with its existing satellite infrastructure, SpaceX is positioning itself to offer a nationwide wireless service that could operate alongside the current trio of leading carriers. The evolving negotiations with tower companies will be central to how quickly and extensively that network can be built out.