AT&T faces a growing threat from SpaceX's Starlink satellite internet service, according to a new Wells Fargo analysis. The firm warned that the telecommunications giant could see its shares sink as Starlink and other upstarts erode its market position.
The warning underscores a broader shift in the telecom landscape, where satellite-based connectivity is increasingly challenging traditional infrastructure. Starlink, which operates a low-Earth orbit constellation, has rapidly expanded its subscriber base and service capabilities.
Wells Fargo's note did not specify a projected share price decline or revenue impact. The assessment appears to rely on qualitative factors, including Starlink's technological advantages and expanding footprint.
Investors should watch for AT&T's strategic response, which may include investments in its own satellite capabilities or partnerships. The company's legacy wireless and wireline businesses could face sustained pressure as satellite internet becomes more mainstream.
Critics argue that terrestrial networks still offer superior latency and reliability for urban users, while Starlink's service remains a niche offering in densely populated areas.