Telecom executives say Starlink cannot replace terrestrial wireless networks

  • AT&T and T-Mobile executives said Starlink cannot replace terrestrial wireless networks because of signal, distance and indoor-coverage constraints.
  • SpaceX expects a new computing agreement to generate more than $1 billion in monthly revenue and over $13 billion in annual recurring revenue.
  • Starlink could still target rural and suburban broadband, while Starlink Mobile is planned to challenge telecom companies by the end of 2027.

AT&T CEO John Stankey and T-Mobile CFO Pete Osvaldik said SpaceX's Starlink faces physical and coverage limitations that prevent it from replacing terrestrial wireless networks, especially indoors, in high-rises, stadiums and some vehicles. They said Starlink could still compete in rural and suburban broadband, airline connectivity, outdoor Internet of Things applications and other areas with a clear view of the sky. SpaceX President Gwynne Shotwell has said Starlink Mobile will challenge traditional telecom companies by the end of 2027, while the Federal Communications Commission plans to make more than 1,000 MHz of additional spectrum available for satellite broadband. Separately, SpaceX expects a new computing agreement to generate more than $1 billion in monthly revenue and over $13 billion in annual recurring revenue.

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