Sometimes a corporate press release is just a corporate press release. And sometimes it's an earthquake. Elon Musk would like you to know this one is the latter.

Space Exploration Technologies Corp. (SPCX) CEO Elon Musk said on Thursday that the company's acquisition of 800 MHz spectrum will be a major milestone in providing satellite-based cellular connectivity in the U.S.

Elon Musk Intensifies Spectrum Wars

"This is the last critical piece of the spectrum puzzle," Musk said on the social media platform X, quoting a post by influencer and Tesla Inc. (TSLA) investor Sawyer Merritt.

Merritt, in his post, said that SpaceX's acquisition of 800 MHz spectrum would enable "better indoor coverage" and provide "signals that can penetrate walls and other obstacles." Musk added that the spectrum would help SpaceX provide "complete phone coverage in America."

Musk also responded to investor and All In Podcast host Chamath Palihapitiya, who quoted Musk's post on X. "This is a very big deal," Palihapitiya said.

"To the casual observer, this won't seem like much," Musk said in his response to the Social Capital founder. "To those who understand the spectrum wars, it's an earthquake," Musk added.

After the news, shares of telecom companies fell, with AT&T down 6.59% to $23.23 in overnight trading on Thursday after a 1.63% gain at market close. Verizon Communications Inc. (VZ) shares fell 5.70% to $43.71 during overnight trading on Thursday. T-Mobile US Inc. (TMUS) shares also recorded a 6.10% decline to $160.86 during overnight trading.

What Is an 800 MHz Spectrum?

The 800 MHz band is considered low-band spectrum, allowing signals to travel relatively long distances and penetrate buildings and other obstacles more effectively than higher-frequency spectrum.

SpaceX has agreed to acquire a nationwide portfolio containing up to 14 MHz of paired spectrum in the 800 MHz band from Grain Management. The company says the low-band spectrum will complement its existing 2 GHz spectrum and help Starlink Mobile provide connectivity to devices inside buildings.

FCC Approves Starlink Deployment

The Federal Communications Commission (FCC), on Tuesday, announced its approval for SpaceX to deploy 15,000 Starlink Mobile satellites to provide Mobile Satellite Services (MSS) and that SpaceX would not need to enter leasing agreements with ground-based carriers for the service.

Despite the agency's approval, telecom operators remain skeptical of SpaceX's satellite-based approach, which would also rely on femtocells, which are cellular base stations used to improve connectivity indoors. AT&T Inc. (T) CEO John Stankey dismissed SpaceX's cellular service talks, citing regulatory hurdles, as well as technological limitations with the service.

Gene Munster Touts Starlink Handsets

Investor Gene Munster, following the 800 MHz spectrum announcement, said that a Starlink-enabled smartphone could be on the way. "A vertically integrated handset on a Starlink mobile network could deliver features carriers can't match, and cheaper service," the Deepwater Asset Management co-founder said.

The investor also said that even if Musk denies the smartphone could be on its way, a SpaceX device could pose challenges for Apple Inc. (AAPL) and Samsung Electronics Co. Ltd. (SSNLF).

Price Action: SPCX shares were up 3.11% to $165.57 during overnight trading on Thursday.