The U.S. stock market telecom sector suffers a "hammer blow," but the FCC Chair cheers: This is exactly the "healthy signal" of intensified competition.

According to Zhitong Finance, Brendan Carr, Chairman of the U.S. Federal Communications Commission (FCC), stated that the recent collective decline in wireless carriers' stock prices precisely indicates that competition in the telecommunications service market is intensifying, with the relevant policies of the Trump administration being one of the major driving forces.

In an interview on Wednesday, Carr pointed out that large-scale spectrum auctions, cross-sector competition from satellite companies, and ECHO.US gradually withdrawing from the wireless network business have collectively intensified the competitive landscape in the market.

“Mobile carriers' stock prices are taking a beating,” Carr said bluntly. “Years ago, there were predictions that the market must retain four major carriers, or else businesses would become complacent and stock prices would soar as a result—but today's reality is completely contrary to that forecast.”

As a Trump-appointed FCC Chairman, Carr last year pushed for EchoStar Communications to sell most of its spectrum assets to SpaceX (SPCX.US) and AT&T Inc. (T.US). He previously argued that EchoStar Communications was advancing too slowly in building the fourth nationwide wireless carrier.

“Given the various competitive pressures already present in the market, we do not agree with the argument that a fourth nationwide carrier must be artificially created,” Carr remarked. “And the facts are proving our judgment correct: network speeds are rising continuously and service prices keep dropping.”

In 2020, the T-Mobile (TMUS.US) and Sprint Corp. merger was approved with the condition that EchoStar Communications acquire the Boost Mobile brand and commit to building an independent 5G wireless network. Last year, Carr launched an investigation into the progress of EchoStar Communications' project, which ended upon announcement of the spectrum sale plan. In May this year, the FCC formally approved the related license transfer.

Carr expressed satisfaction with the current competition in wireless services, especially with emerging satellite operators like SpaceX and Amazon (AMZN.US) injecting new vitality into the market.

Recently, the stock prices of AT&T, T-Mobile, and Verizon (VZ.US) have been under sustained pressure, due in part to SpaceX's successful initial public offering and market concerns that it may launch wireless services in direct competition with major carriers. According to a June 26 report, SpaceX is in discussions with internet access provider Charter Communications (CHTR.US) about launching a wireless phone service.

Carr is optimistic about how SpaceX can use the newly acquired spectrum to improve its Starlink direct-to-device mobile service—a new field expected to enable communication in areas without terrestrial network coverage. Currently, SpaceX has partnered with T-Mobile to provide such coverage. Carr also noted his willingness to consider allowing SpaceX to more directly provide wireless services to consumers. He mentioned that while there have not yet been “substantial discussions” with SpaceX, he remains “open to any potential transactions.”

In addition, the FCC is still reviewing Amazon’s plan to acquire satellite operator Globalstar (GSAT.US), which is committed to bringing its low Earth orbit (LEO) satellite network into operation.

“Clearly, they still need to keep launching satellites and building networks, but if the FCC can approve the acquisition and grant the relevant spectrum rights, it will be a key breakthrough,” said Carr.

Carr pointed out that under his leadership, the FCC has generally been transaction-friendly, with deal-making activities in the connectivity sector flourishing. Since being appointed by President Trump in January 2025, the FCC has handled total deal volumes amounting to between $140 billion and $160 billion.

“We’ve seen major deals in the cable sector such as Charter’s transactions, AT&T moves in the spectrum space, and even media consolidation with CBS,” Carr indicated. “Currently, we’re open and receptive to various kinds of transactions.”

Meanwhile, Carr stated that policy initiatives to continue driving growth in the wireless industry will not stop. On July 22, the FCC will vote on two proposals: one to auction more high-value wireless spectrum to commercial operators, and another to simplify the licensing process for satellite communications, to further unleash industry vitality.