AT&T chief defends fiber as SpaceX satellite threat weighs on telecom targets
Scotiabank lowered price targets for AT&T, Verizon, T-Mobile, and Comcast, pointing to competition from SpaceX and concerns about AI disruption. AT&T CEO John Stankey argued fiber remains about three times faster than satellite and said SpaceX's cellular plan would be costly and legally difficult. The key question is whether consumers will actually adopt satellite phone service, since T-Mobile's Starlink offering has seen lower-than-expected usage.
Scotiabank trimmed targets for AT&T, Verizon, T-Mobile, and Comcast, citing SpaceX rivalry and AI-related disruption. AT&T’s target moved to $27.50 from $29.25; Verizon’s to $51.50 from $52.50. AT&T’s free cash flow has ranged from $18.5 billion to $20.5 billion annually over three years, supporting fiber investment.
SpaceX agreed to buy EchoStar’s AWS-4 and H-block licenses for roughly $17 billion for direct-to-cell service. It gained FCC approval for international telecom services, with a vote planned on more satellite broadband spectrum. AT&T, Verizon, and T-Mobile launched a satellite coverage venture. AT&T’s forward EV/EBITDA sits at 6.8x, below its September 2025 peak.
If satellite phone service gains traction, consumers in remote areas could get more coverage choices, while carriers may face pressure on pricing and network investment. Investors and telecom employees could see shifting valuations and spending priorities. Yet lower-than-expected Starlink phone usage suggests adoption may stay limited, so near-term effects on most households may be modest.