Elon Musk accelerates the creation of the "fourth largest U.S. carrier"! SpaceX (SPCX.US) plans to acquire 80,000 cellular base stations, offering new opportunities for communication tower companies

According to information obtained by Zhihui Finance APP, SpaceX (SPCX.US) is planning to acquire at least 80,000 cellular base station sites in the United States and is currently in negotiations with at least one major cellular infrastructure company to achieve this goal.

Sources said that these agreements will further consolidate the path of this rocket and satellite giant to become the fourth largest nationwide wireless operator in the U.S. One of the companies currently in talks with SpaceX is Crown Castle International (CCI.US), which is considered one of the largest owners of cellular communication towers in the U.S. alongside American Tower (AMT.US) and Vertical Bridge (VRT.US).

Mobile communication networks rely on antennas deployed on communication towers nationwide to transmit wireless signals. Operators typically lease equipment installation space at tower sites because this is more cost-effective than owning and maintaining the towers themselves, partly because these facilities can be shared by multiple operators. The deal with SpaceX could be worth several billion dollars.

During Wednesday’s earnings call, when asked whether Crown Castle International was discussing lease deals with SpaceX, Amazon (AMZN.US) or other satellite-based telecom service providers, Crown Castle International CEO Chris Hilbert said: “You can assume we are in talks with all relevant parties.” He declined to disclose client specifics.

After news of these negotiations, Crown Castle International’s share price surged as much as 10% in after-hours trading. AT&T (T.US), Verizon (VZ.US), and T-Mobile US (TMUS.US) share prices each fell about 5%, as the market worried that a new entrant would intensify competition.

SpaceX CEO Elon Musk has been candid about his intent to build an independent wireless carrier from scratch, which would increase competitive pressure on incumbent operators from a well-funded and politically influential new rival. Although the plan requires major investment, Musk continues to push forward.

Recently, SpaceX acquired low-band spectrum, which will help the company integrate Starlink satellites and other elements to build what Musk described as “a major mobile operator.” The U.S. Federal Communications Commission (FCC) has already approved the company to launch 15,000 satellites dedicated to providing mobile communication services directly to phones. Wireless communication tower sites are another key infrastructure component that SpaceX must develop to establish reliable connections with ground users.

During the SpaceX earnings call this week, Musk said: “We will build out the ground network to enable broad coverage, so that anywhere SpaceX and Starlink are licensed to operate can achieve full connectivity.” He said satellite launches coupled with spectrum acquisitions “will pave the way for Starlink Mobile to become a major mobile operator in the U.S.” Crown Castle International CEO Hilbert said SpaceX’s acquisition of low-band spectrum is a “major milestone” toward achieving broad mobile communication coverage.

Earlier this month, after news broke of SpaceX’s latest spectrum acquisition, shares of tower companies rose, signaling that the market expects these companies to receive significant business as SpaceX looks to build larger infrastructure to deploy the newly acquired spectrum.

SpaceX previously stated that it plans to use its home internet devices to broadcast mobile communication signals near customer terminal installation locations. However, research firm MoffettNathanson LLC noted that while these sites are at the user’s location, they may not be in locations that provide the continuous and stable coverage needed for the entire network.