Speaking to Axios, Stankey described SpaceX’s ambition of becoming a major challenger to traditional telecom companies as “not a viable strategy,” even as Elon Musk and Gwynne Shotwell, president of SpaceX, have outlined plans to expand Starlink beyond satellite internet and into mobile services. AT&T CEO John Stankey has cast doubt on Musk’s plans to turn SpaceX’s Starlink satellite network into a direct competitor to wireless carriers, arguing that the economics and technical realities behind the strategy do not add up.
Starlink had 12 million subscribers and a constellation of 10,200 satellites covering 167 countries as of June 30, according to SpaceX’s public disclosures. The connectivity business accounted for 55% of SpaceX’s revenue, making it the company’s biggest revenue generator. As of June 30, Starlink had 12 million subscribers and more than 10,200 satellites providing coverage across 167 countries. its connectivity business is actually its largest revenue driver, accounting for 55% of total sales While SpaceX’s rockets and AI work tend to dominate headlines.
Because its service would simply be better, shotwell added fuel to that narrative in August, during SpaceX’s first earnings call as a public company, predicting the company would win over a meaningful number of customers.
Shotwell recently said she expects Starlink to win customers from traditional carriers, arguing that the company’s service would be superior. The comments come as SpaceX seeks to leverage Starlink’s growing satellite network to compete more directly with established telecom operators. The remarks rattled investors, with shares of major telecom firms including AT&T, Verizon and T-Mobile reportedly falling after SpaceX highlighted its ambitions. Starlink already competes with traditional telecom companies for home and business internet customers, and SpaceX has now started talking openly about a mobile business that would put it in direct competition with wireless carriers. That comment sent shares of AT&T, Verizon, and T-Mobile falling the following day.
As both sides invest billions to shape the future of communications, the battle between fibre, cellular networks and satellite internet appears set to intensify.
Despite the scepticism, the growing confrontation between SpaceX and established telecom providers highlights how satellite-based connectivity is increasingly moving into territory historically dominated by mobile network operators.