US cell tower operators rise on SpaceX's push to build mobile network

Verizon Communications

Today 11:30

** Shares of US cell tower operators jump premarket after Bloomberg reports SpaceX is in talks with Crown Castle to access at least 80,000 US cellular sites as it seeks to build a fourth nationwide wireless carrier 
** Bernstein says a potential SpaceX mobile network build-out would could create substantial leasing opportunities for tower companies while increasing competition and costs for existing telecom operators
** Crown Castle CCI.N rises 7.3% to $84.60 and American Tower AMT.N gains 5.7% to $191.96, both set to open at their highest levels in four months if gains hold 
** Telecom operators AT&T T.N, Verizon VZ.N and T-Mobile TMUS.O fall between 3.1% and 3.7%
** Citi says US wireless carriers have at least three to five years to strengthen networks, adjust marketing and cut costs before SpaceX enters the mobile market
** The brokerage says buying an existing national telecom operator could be more economical for SpaceX, with AT&T and Verizon potentially favored over T-Mobile due to their fiber broadband assets
** Crown Castle, American Tower and SpaceX did not immediately respond to Reuters requests for comment

(Reporting by Jayasree Prabhu)
((jayasree.prabhu@thomsonreuters.com))