Why AT&T Is Not Concerned About SpaceX's Starlink Business
AT&T (T) has faced concerns about competition from SpaceX's Starlink internet service, but CEO John Stankey remains unconcerned. He highlighted that satellite-based services like Starlink struggle to provide reliable indoor coverage in high-rise buildings and fail to meet consumer expectations for consistent connectivity. AT&T’s long-standing infrastructure positions it well to continue meeting customer demands. Financially, AT&T generated over $127 billion in revenue over the past 12 months, significantly outpacing Starlink's estimated annual run rate of around $17 billion as part of SpaceX's broader operations. Despite recent volatility, AT&T’s stock has recovered and currently offers a strong dividend yield of approximately 4.19%, making it an attractive option for long-term income-focused investors. While SpaceX (SPCX) commands significant attention with its high valuation, many analysts argue that AT&T provides more stability due to its established market presence and solid fundamentals.
Topics: AT&T satellite internet SpaceX Starlink telecom