SpaceX's Low-Band Spectrum Deal Not Enough to Challenge Big Three Carriers, MoffettNathanson Says

MT newswire2026/10/09 17:30

01:30 PM EDT, 10/09/2026 (MT Newswires) -- SpaceX (SPCX) management is correct that low-band spectrum is necessary for coverage and in-building penetration, but the company remains far from having the assets needed to compete with the "Big Three" carriers, MoffettNathanson said Friday in a note. SpaceX would need to construct a terrestrial network to offer a competitive service, which would cost tens of billions of dollars and take many years to build, according to the note. MoffettNathanson said Starlink's only viable path to becoming a competitor to the big three carriers would be to secure a mobile virtual network operator agreement with one of them. Acquiring spectrum was Starlink's best option for gaining the negotiating leverage needed to secure such an agreement, the note added. None of the big three carriers intends to enable Starlink as a competitor by granting it an MVNO agreement, according to the brokerage. T-Mobile (TMUS), whose T-Satellite service is powered by Starlink, recently removed Starlink's name from its website and marketing materials, MoffettNathanson said. Telecom stocks fell sharply following the spectrum deal. However, the brokerage does not believe Starlink's direct-to-device service poses a material risk to Verizon (VZ), AT&T (T), or T-Mobile. Price: 162.11, Change: +1.54, Percent Change: +0.96

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