T-Mobile US Inc. Chief Financial Officer Pete Osvaldik said Space Exploration Technologies Corp.'s Starlink satellite-to-phone service is not a competitive threat to traditional wireless operators because distance and signal-penetration limits prevent it from replacing terrestrial networks, particularly indoors. Speaking at Citigroup Inc.'s 2026 Global TMT Conference on Wednesday, Osvaldik said even a vast satellite fleet could not overcome the fundamental laws of physics and estimated SpaceX would need probably more than 1 billion femtocells (small indoor coverage devices) to match outdoor coverage, while also managing interference. He said Starlink could still challenge broadband providers, particularly in rural and suburban areas, using spectrum assets and externally powered antennas. SpaceX President Gwynne Shotwell has said the company plans to compete with traditional telecom companies through Starlink Mobile by the end of 2027, while the Federal Communications Commission intends to make more than 1,000 MHz of additional spectrum available for satellite broadband. SpaceX CFO Bret Johnsen separately said a new compute agreement is expected to generate more than $1 billion in monthly revenue and over $13 billion in annual recurring revenue. The company also has compute agreements with Alphabet Inc. and Anthropic, and released its fourth-generation Starlink Router. SpaceX shares rose about 0.74% to $149.28 in Friday premarket trading.