AT&T CEO Dismisses Starlink Threat: 'They're Very Late to the Game'

AT&T (T) has posted its fifth consecutive quarterly earnings beat, adding over a million new accounts. However, the stock continues to trade near multiyear lows as concerns over satellite internet competition from Starlink and others persist.

CEO's Remarks

CEO John Stankey recently dismissed the threat from satellite competitors, stating they are "coming to the game very late." He emphasized that AT&T's terrestrial network, built over decades with billions in investment, offers superior coverage, speed, and reliability compared to satellite-based services.

Stock Performance

Despite the strong earnings performance, AT&T's stock has declined more than 20% over the past year. Analysts attribute part of the decline to fears that Starlink could capture market share in rural and remote areas, pressuring AT&T's subscriber growth and pricing power.

Analyst Views

Some analysts believe the Starlink threat is real, especially as the satellite service expands its coverage. They warn that AT&T may need to lower prices or increase network investment to defend its market position. Others remain optimistic, citing AT&T's large customer base and strong brand as competitive advantages.

What This Means for Investors

Investors should monitor the evolving competitive landscape in telecom, particularly the impact of satellite-based services. AT&T's consistent earnings beats suggest operational strength, but the stock's valuation reflects ongoing uncertainty about future growth and market share.