European telecom stocks fall on SpaceX competition concerns
European stocks recovered on the morning of October 9, while telecommunications shares diverged sharply.
The STOXX 600 index rose 0.8% to 630.47 points, but the telecommunications index fell 2.7%. Deutsche Telekom shares declined 7%, Vodafone 3.5%, Orange 2.4% and Telefónica 2.3%.
The selloff reflected competition concerns arising from SpaceX's nationwide wireless spectrum acquisition agreement announced on October 8. The new development is not the agreement itself, but the European telecom sector's share-price reaction on the morning of October 9.
The expansion of direct-to-mobile satellite connectivity could pressure traditional operators' long-term revenue expectations.
Comments