Australian telecom shares tumble as SpaceX moves closer to direct-to-cell market
Regional carrier shares tumble across Australia and New Zealand as investors reprice long-term satellite competition risks following a multi-billion-dollar spectrum acquisition.
Major telecommunications stocks across Australia and New Zealand fell sharply on Monday, echoing a global sell-off triggered by fears that SpaceX's expansion into direct-to-device mobile services could challenge traditional telecom operators.
Australia's Telstra dropped 2.5% to a six-week low, while TPG Telecom fell 4.9%, its steepest daily decline since early June.
New Zealand's Spark lost 1.8%, while smaller regional players, including Superloop and Aussie Broadband, also declined.
The sell-off followed SpaceX's agreement last week to acquire a nationwide low-band spectrum portfolio in the United States, strengthening Starlink Mobile's direct-to-cell capabilities and bringing Elon Musk's satellite venture closer to competing with established wireless carriers.
Low-band frequencies travel longer distances and penetrate buildings more effectively than higher-frequency airwaves, potentially allowing satellite-based services to challenge traditional mobile networks.
The deal has raised concerns among investors in the US and Europe about growing competition from satellite-based mobile services.
"Investors fear the U.S. is just the first market, and that incumbents' biggest advantage, coverage, is losing its value," said David Tuckwell, CIO at ETF Shares in Sydney.
