AT&T Inc. provides telecommunications and technology services worldwide through two segments: Communications and Latin America. The Communications segment offers wireless voice and data services, sells handsets and accessories, and provides broadband, VPN, and managed professional services under brands including AT&T, Cricket, and AT&T Fiber. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brands. Formerly SBC Communications Inc., the company changed its name to AT&T Inc. in 2005, was incorporated in 1983, and is based in Dallas, Texas.
SpaceX's Starlink mobile threat sinks AT&T to 52-week low
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SpaceX plans Starlink retail mobile service SpaceX told investors it may launch a Starlink-branded mobile service for U.S. consumers, directly competing with AT&T. This threatens AT&T's core wireless business and sparked a sharp selloff, pushing the stock to a 52-week low.
This is the main new competitive threat driving AT&T's decline.
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Oppenheimer downgrades AT&T on SpaceX threat Oppenheimer cut AT&T to Perform, citing a structural threat from satellite networks like Starlink. It also doubts AT&T's fiber buildout will hit its 2030 target, which could slow subscriber and revenue growth. The downgrade added to selling pressure.
Analyst downgrade directly reflects and amplifies the competitive threat.
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AT&T loses Russell Top 50 spot, CFO transition AT&T was removed from the Russell Top 50 Index, forcing index funds to sell shares. The company also announced CFO Pascal Desroches will retire at year-end, with Jennifer Biry taking over in 2027. These events added to the stock's decline.
Index removal and management change are new negative catalysts.
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AT&T Fiber wins Opensignal awards, Rivian 5G deal AT&T Fiber earned 107 Opensignal wins, nearly double its closest rival, showing network strength. AT&T also became Rivian's 5G connectivity partner, expanding into electric vehicles. These positives highlight AT&T's competitive assets but were overshadowed by the Starlink threat.
Provides a counterweight to the negative news, showing AT&T's strengths.
Latest
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AT&T expands broadband reach via Cricket, Corning fiber deal, and satellite JV
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Cricket launches 5G home internet AT&T's Cricket brand launched 5G home internet, a cheap way to sell broadband over AT&T's network. This adds new customers and revenue, helping AT&T compete with T-Mobile and Verizon in home internet.
New service expands AT&T's addressable market and revenue potential.
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AI agents threaten customer inertia Meta's new AI agent sparked a selloff in telecom stocks, including AT&T, because it could make switching providers easier. If customers switch more often, AT&T may have to spend more to keep them, hurting profits.
Highlights a new competitive risk that could pressure AT&T's customer retention and costs.
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Corning $3B fiber supply deal AT&T signed a $3 billion multi-year deal with Corning for fiber and cable, securing supplies to expand fast internet to 60 million Americans by 2030. This supports AT&T's growth plans and shows confidence in its broadband strategy.
Satellite joint venture with rivals AT&T, T-Mobile, and Verizon formed a joint venture to use satellites to eliminate coverage dead zones. This expands AT&T's reach into rural areas and improves service, potentially attracting more customers without heavy new spending.
New partnership extends AT&T's coverage and service quality, a positive for customer growth.
Q3 2026
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AT&T Q3: Buybacks, Subscriber Growth Offset Starlink and Rate Fears
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Accelerated $10B buyback and strong Q2 results AT&T posted strong Q2 results, accelerated its $10 billion share buyback, and set records for postpaid phone and internet subscriber growth. Management reaffirmed double-digit earnings growth, signaling confidence in the core business.
Buybacks and subscriber growth directly support the stock price and show operational strength.
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EchoStar spectrum deployment and AI cost cuts AT&T successfully deployed EchoStar spectrum, boosting network capacity. Advanced connectivity revenue rose 4.1%, and AI tools cut some costs by 80–90%, improving efficiency and margins.
Spectrum deployment and AI-driven cost savings enhance profitability and competitive position.
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Fiber and satellite partnerships expand reach AT&T expanded fiber and satellite coverage through deals with Corning, Amazon Leo, Cricket 5G, and a satellite joint venture with T-Mobile and Verizon. These moves broaden AT&T's connectivity offerings and address competition.
Partnerships show AT&T adapting to industry shifts and expanding its addressable market.
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Starlink fears, fiber ARPU decline, and rate hike SpaceX/Starlink competition fears continued to pressure shares. Fiber ARPU fell 1.3%, and price hikes contributed to a Fed rate increase, raising borrowing costs on AT&T's heavy debt. Meta's AI agent also sparked a telecom selloff over customer-switching risks.
These factors weighed on the stock and highlight ongoing risks to AT&T's business and valuation.
News & notes movingT
United States
Space Economy▲
AT&T CEO Stankey Says SpaceX's Starlink Cellular Plan Won't Work, Touts Fiber
AT&T CEO John Stankey said Elon Musk-led Space Exploration Technologies Corp.'s plan to roll out a cellular network will not work, arguing fiber-based connectivity beats satellites. In an interview with Axios on Tuesday, Stankey said fiber is three times faster than satellite networks and that satellite, even at its best over the next 10 years, still will not beat fiber. Asked about SpaceX's plan to install cellular base stations alongside Starlink dishes, Stankey said it would cost as much as building a macro network to handle those capabilities, and that companies cannot radiate cellular signals from someone's house without permission. He cited a whole bunch of reasons why SpaceX's plan would not work. Earlier this month, SpaceX won Federal Communications Commission approval to provide international telecommunications services, boosting its plans for direct-to-cell 5G connectivity via the Starlink constellation, and the FCC is set to vote on September 30 on unlocking an additional 1,000 MHz of spectrum for satellite broadband.
T · Competition · Positive AT&T CEO touts fiber as superior to satellite and dismisses SpaceX's Starlink cellular plan, positioning AT&T's fiber connectivity as the winning approach.
SPCX · Competition · Negative AT&T CEO Stankey publicly argues SpaceX's Starlink direct-to-cell plan won't work and fiber beats satellites, casting doubt on the viability of SpaceX's cellular ambitions.
MoffettNathanson Warns Starlink V3 Satellites Threaten Comcast and Charter Broadband
MoffettNathanson analyst Craig Moffett said Tuesday that SpaceX's Starlink is becoming a more credible competitor to terrestrial broadband providers, particularly in rural and lower-density markets, as the service begins deploying higher-capacity V3 satellites. Moffett told CNBC that Starlink poses a much greater competitive challenge to Comcast Corp. and Charter Communications Inc. than to traditional wireless carriers such as AT&T Inc. and Verizon Communications Inc., saying the terrestrial broadband business where they deliver ISP service is a very credible product that already is having a significant impact. SpaceX's first Starship orbital flight deployed 26 V3 Starlink satellites, which Moffett said carry substantially more capacity and should improve the service, though he expects it will be after 2030 before most of the Starlink constellation consists of V3 satellites. Even with V3 satellites, he does not expect Starlink to match the speeds offered by terrestrial fiber or cable broadband, leaving pricing and customer segmentation as major competitive factors, with Starlink potentially competing more effectively for value-oriented customers. Moffett compared the challenge with the pressure Comcast and Charter already face from fixed wireless access, noting the cable operators have responded by bundling broadband with wireless services, a strategy he said has proven relatively successful.
CHTR · Competition · Negative Starlink's higher-capacity V3 satellites make it a more credible broadband competitor, pressuring Charter's ISP business.
CMCSA · Competition · Negative Moffett warns Starlink V3 poses a much greater competitive challenge to Comcast's terrestrial broadband business.
SPCX · Technology · Positive SpaceX's Starship deployed 26 V3 Starlink satellites, boosting capacity and improving the service.
T · Competition · Neutral Mentioned only as facing less competitive threat from Starlink than cable operators.
VZ · Competition · Neutral Mentioned only as facing less competitive threat from Starlink than cable operators.
AT&T Eyes Another Earnings Beat With Positive ESP Ahead of October 21 Report
AT&T is positioned to potentially beat earnings estimates again in its next quarterly report, according to Zacks Investment Research. The telecommunications company has topped estimates by 6.90% on average over the last two quarters, including a 10.17% surprise last quarter when it reported earnings of $0.65 per share versus the Zacks Consensus Estimate of $0.59 per share, and a 3.64% surprise the quarter before with earnings of $0.57 per share against an expected $0.55 per share. AT&T currently has an Earnings ESP of +3.28% combined with a Zacks Rank #3 (Hold), a combination that Zacks research shows produces a positive surprise nearly 70% of the time. The company's next earnings report is expected to be released on October 21, 2026.
AT&T, T-Mobile and Verizon Form Joint Venture to Close U.S. Coverage Dead Zones, Name Paul Roth Interim CEO
AT&T, T-Mobile and Verizon have entered into a joint venture agreement aimed at expanding satellite-enabled coverage in underserved areas across the U.S., following a May announcement that the three carriers would pool limited spectrum resources to help eliminate coverage dead zones. Paul Roth, a wireless industry veteran who previously held leadership roles at AT&T, Cingular Wireless and Ameritech, will serve as interim CEO while a search for a permanent chief executive is underway, and the venture will be managed by a board with representatives from each founding member. The JV is designed to complement terrestrial mobile networks rather than replace them, with the goal of nearly eliminating dead zones currently without mobile service, providing redundant connectivity during natural disasters, and improving direct-to-device access as a first step. The partners said the venture will support industry competition and innovation, work with rural mobile network operators, and pursue a standards-based approach to device compatibility, while existing carrier-satellite agreements remain in place and the three companies can continue connectivity efforts independently.
T · Demand · Positive AT&T is a founding partner in the JV to expand satellite-enabled coverage and eliminate dead zones, expanding its service reach.
TMUS · Demand · Positive T-Mobile is a founding partner in the JV pooling spectrum to close U.S. coverage dead zones, extending its connectivity offering.
VZ · Demand · Positive Verizon is a founding partner in the JV to expand satellite-enabled coverage in underserved U.S. areas.
Corning Jumps 3.1% Premarket on Over $3 Billion AT&T Fiber Deal
Corning announced a multi-year agreement valued at over $3 billion with AT&T to supply fiber and cable for nationwide network growth, sending its shares up 3.1% in the pre-market session. The deal is structured to support AT&T's broadband expansion, with production backed by Corning's U.S. manufacturing facilities, as the companies aim to meet accelerating broadband demand driven by internet use and artificial intelligence. The agreement represents a multi-year commitment exceeding $3 billion for Corning's optical fiber products. The stock was trading at $158.65, up 4.7% from the previous close. Corning shares are up 75% since the start of the year but remain 38% below their 52-week high of $255.69 from June 2026.
GLW · Demand · Positive Corning signed a multi-year agreement worth over $3 billion with AT&T to supply fiber and cable for AT&T's nationwide broadband network growth.
T · Demand · Positive AT&T secured a multi-year fiber and cable supply deal with Corning to support its broadband expansion and meet accelerating internet/AI-driven demand.
Corning and AT&T sign $3 billion multi-year fiber supply deal
Corning Incorporated has signed a multi-year agreement with AT&T valued at more than $3 billion to supply fiber and cable for AT&T's network expansion, sending Corning shares up 3% Tuesday morning. Under the deal, Corning will provide the fiber and cable AT&T needs to bring internet connectivity to more Americans, supporting AT&T's commitment to deliver fast internet to 60 million Americans by the end of 2030. The agreement builds on both companies' U.S. investments: AT&T has committed more than $250 billion over five years to strengthen U.S. connectivity infrastructure, while Corning continues to expand its U.S. fiber and cable manufacturing, including at North Carolina facilities that have created hundreds of jobs. AT&T said the average AT&T Fiber household now uses more than 1 terabyte per month, five times the 2016 level, with monthly use expected to reach 2 to 2.5 terabytes by 2030. AT&T reiterated the financial outlook and capital allocation plan from its second-quarter 2026 earnings release, which reflects the financial impact of this agreement.
T-Mobile Launches AI-Powered AutoPilot and Dynamic CX to Boost 5G Resilience
T-Mobile US has enhanced its 5G network with new artificial intelligence-powered capabilities, launching advanced AutoPilot capabilities and rolling out Dynamic CX nationwide as part of broader network modernization efforts. Built into T-Mobile's Self-Organizing Network, AutoPilot uses intent-based AI automation to make real-time network adjustments, with recent testing showing it can respond in about half the time, while Dynamic CX uses AI to anticipate demand during major events and automatically optimize network performance. The company is also investing in physical resilience, with hybrid generators helping keep network sites operational up to 50% longer during extended power outages and additional backup transport paths allowing traffic to move through alternative routes. Its Self-Organizing Network technology supported network continuity during Winter Storm Fern, keeping sites online for more than 250,000 additional minutes across over 30 states and enabling more than 30,000 antenna adjustments to extend coverage. T-Mobile faces competition from AT&T, which is deploying 600 MHz spectrum and advanced Ericsson radios and has launched a dedicated 5G standalone core for FirstNet, and from Verizon, which is expanding its fiber infrastructure and using AI-enabled tools to improve network performance. T-Mobile shares have plunged 30.4% over the past year against the industry's growth of 94.9%, and the stock trades at a forward price-to-sales ratio of 1.82 versus the industry's 7.92. T-Mobile's earnings estimates for 2026 have increased 1.2% to $10.82 per share over the past 60 days, while estimates for 2027 have risen 1.2% to $13.39.
TMUS · Technology · Positive T-Mobile launched AI-powered AutoPilot and Dynamic CX plus physical resilience upgrades to strengthen its 5G network.
T · Competition · Neutral Mentioned as a competitor deploying 600 MHz spectrum, advanced Ericsson radios, and a dedicated 5G standalone core for FirstNet.
VZ · Competition · Neutral Mentioned as a competitor expanding fiber infrastructure and using AI-enabled tools to improve network performance.
AT&T's board has declared a quarterly cash dividend of US$0.2775 per common share and confirmed quarterly payments on its Series A and Series C perpetual preferred stock, all payable on November 2, 2026, to shareholders of record as of October 12, 2026. The company paired the dividend affirmation with an expanded Dallas Cowboys partnership aimed at advancing AT&T Stadium's connectivity and fan technology. The reaffirmation sits alongside AT&T's plan to return about US$18,000,000,000 of expected 2026 free cash flow through dividends and buybacks. AT&T's narrative projects $136.1 billion revenue and $18.3 billion earnings by 2029, implying 2.5% yearly revenue growth and a $3.0 billion earnings decline from $21.3 billion today, with a $29.03 fair value estimate. The most optimistic analysts saw revenue reaching about US$140,000,000,000 and earnings near US$19,400,000,000, while the key risk remains that wireless price increases amplify churn and keep margins under pressure.
T · Capital · Positive AT&T's board declared a $0.2775 quarterly dividend and reaffirmed ~$18B of 2026 free cash flow returned via dividends and buybacks.
T · Demand · Positive AT&T expanded its Dallas Cowboys partnership to advance AT&T Stadium connectivity and fan technology.
AT&T and Dallas Cowboys Partner to Upgrade AT&T Stadium Network for 2026
AT&T and the Dallas Cowboys have agreed a new partnership to upgrade AT&T Stadium's network and fan technology in 2026. The alliance will use AT&T's connectivity to support features such as smarter wayfinding, immersive video, mixed reality and AI-driven engagement, with both partners positioning AT&T Stadium as a flagship testbed for new connected venue services aimed at sports and entertainment clients. AT&T is a US telecom group with a market value of about $174.4b that supplies connectivity and technology services worldwide. The deal gives AT&T a high-profile proving ground for its 5G plus fiber convergence and digital expansion into new use cases, though the bigger question for investors is whether these connected venue capabilities stay as showcase projects or are commercialized at scale for other stadiums, arenas and enterprise clients. The practical indicator will be what management discloses around 2026 and 2027 wins that reuse the AT&T Stadium playbook, such as new connected venue contracts signed or quantified revenue tied to sports and entertainment use cases in segment reporting.
T · Demand · Positive AT&T signs a partnership with the Dallas Cowboys to upgrade AT&T Stadium's network and fan technology, giving it a flagship connected-venue proving ground for 5G/fiber services.
Dallas Cowboys · Technology · Positive The Dallas Cowboys partner with AT&T to upgrade AT&T Stadium's network and fan technology with smarter wayfinding, immersive video, mixed reality and AI-driven engagement.
D-Wave Quantum Secures Up to $100 Million in CHIPS Act Funding and New Deals
D-Wave Quantum has executed a definitive agreement with the U.S. Department of Commerce, based on its previously announced Letter of Intent, giving it access to up to $100 million in funding under the U.S. CHIPS and Science Act to accelerate research and development of its annealing and gate-model quantum systems. NTT DOCOMO, Japan's largest mobile operator, deployed a second D-Wave-powered quantum computing application in production, which cut location-registration signals generated when devices crossed tracking-area-list boundaries by 65.3% at the daily peak and reduced paging signals by 7.0%. D-Wave was also awarded up to CAD $300,000 from the National Research Council of Canada's Applied Quantum Computing Challenge program to advance annealing quantum computing software for commercial applications, and AT&T agreed to expand its use of D-Wave's quantum computing technology to address complex optimization challenges across its network operations. Separately, Rigetti plans to partner with HPE and Pittsburgh Supercomputing Center to build the TangleLab supercomputing testbed, delivering a 9-qubit Novera system to the testbed, which is funded by a $5 million National Science Foundation grant, while Quantum Computing signed a three-year framework agreement with Hamad Bin Khalifa University in Qatar covering quantum computing, quantum sensing and quantum communications. Over the past year, QBTS shares have lost 36.2% compared with the broader Internet Software industry's 5.8% decline, and the stock trades at a forward 12-month price-to-sales ratio of 93.25X versus the industry average of 4.40X.
QBTS · Capital · Positive D-Wave secured a definitive agreement for up to $100M in CHIPS Act funding to accelerate its quantum R&D.
QBTS · Demand · Positive NTT DOCOMO deployed a second D-Wave-powered application in production and AT&T agreed to expand its use of D-Wave technology.
QUBT · Demand · Positive Quantum Computing signed a three-year framework agreement with Hamad Bin Khalifa University covering quantum computing, sensing and communications.
RGTI · Demand · Positive Rigetti plans to partner with HPE and Pittsburgh Supercomputing Center to build the TangleLab testbed, delivering a 9-qubit Novera system.
9432.JP · Demand · Positive NTT DOCOMO deployed a second D-Wave-powered quantum application in production, cutting location-registration and paging signals.
T · Demand · Positive AT&T agreed to expand its use of D-Wave's quantum computing technology for network optimization challenges.
Meta's Muse AI Agent Sparks Selloff in Banks, Insurers and Travel Stocks
Shares of major banks, insurers and online travel agencies slid on Tuesday as investors feared that tools like Meta Platforms Inc.'s personal AI agent could disrupt businesses that benefit from so-called consumer inertia. The S&P 500 Financials Index dropped as much as 2.4% to its lowest levels since July, with JPMorgan Chase & Co., Morgan Stanley and Wells Fargo & Co. all declining more than 2.5%, while insurer Allstate Corp. and brokerage Charles Schwab Corp. fell more than 5%. Travel booking companies were also hit, with Expedia Group Inc. down 3.7% and Booking Holdings Inc. falling 3.9%, and in Europe telecommunications was the worst performing sector in the benchmark Stoxx 600 as France's Orange SA and British carrier BT Group Plc each dropped about 4%. The downturn came as Muse, Meta's new AI agent, rose to the top of Apple Inc.'s US app store, sending Meta shares up 11% on Monday. Goldman Sachs Group Inc.'s trading desk said telecoms, insurance and utilities are the industries to watch if AI agents make it easier and cheaper to switch service providers, naming AT&T Inc., T-Mobile US Inc., Allstate, Progressive Corp., Netflix Inc., Paramount Skydance Corp., Expedia and Booking among its basket of consumer inertia stocks at risk.
Artificial Intelligence › Agentic AI & Autonomous Workflows ▲Demand
META · Technology · Positive Meta's new Muse AI agent rose to the top of Apple's US app store, sending Meta shares up 11%.
ALL · Competition · Negative Named in Goldman's basket of consumer-inertia stocks at risk as Meta's Muse AI agent could make it easier for customers to switch insurers.
BKNG · Competition · Negative Fell 3.9% and was named among consumer-inertia travel stocks threatened by AI agents that ease switching of service providers.
EXPE · Competition · Negative Dropped 3.7% and was listed in Goldman's basket of consumer-inertia stocks at risk from Meta's Muse AI agent.
MS · Competition · Negative Morgan Stanley fell over 2.5% as investors feared Meta's Muse AI agent could disrupt businesses relying on consumer inertia.
SCHW · Competition · Negative Charles Schwab fell more than 5% amid fears Meta's Muse AI agent could disrupt businesses benefiting from consumer inertia.
Cricket Wireless Launches 5G Home Internet, Challenging T-Mobile and Verizon
Cricket Wireless, owned by AT&T, has entered the broadband market with the launch of Cricket 5G Home Internet, a fixed wireless service that went live on Sept. 16. The plan costs $65 per month, or $75 per month when bundled with Cricket Wireless for new customers, while existing Cricket Wireless customers can add it for $45 per month with the $5 autopay discount activated. The service runs on AT&T's network and offers unlimited data with typical download speeds of 90-300 Mbps, upload speeds of 8-30 Mbps, and latency of 30-65 milliseconds, with no installation appointments required. The launch comes as T-Mobile and Verizon have been gaining broadband customers, with T-Mobile reportedly adding roughly 520,000 broadband customers in the second quarter of 2026 and Verizon gaining about 348,000 internet customers during the quarter. Cricket joins a broader push for affordable internet, following AT&T's OneConnect plan at $90 per month, T-Mobile's refreshed fiber offerings starting at $45 per month, and Verizon's One plan at $70 per month.
T · Demand · Positive AT&T-owned Cricket Wireless launches Cricket 5G Home Internet on AT&T's network, expanding its fixed wireless broadband offering.
TMUS · Competition · Negative Cricket's new 5G home internet service challenges T-Mobile, which had been gaining broadband customers.
VZ · Competition · Negative Cricket's entry into fixed wireless broadband challenges Verizon, which had been gaining internet customers.
DTE.XETRA · Competition · Negative Cricket's new 5G home internet service challenges T-Mobile, Deutsche Telekom's US subsidiary.
Apple has raised prices across its entire flagship iPhone lineup by $100, with the new foldable iPhone Duo starting at $1,999, as preorders that began Sept. 12 give way to in-store availability today. US carriers Verizon, T-Mobile, and AT&T have increased their iPhone incentives, according to analysis by Bank of America's Michael Funk, with maximum trade-in credits for the iPhone 18 Pro Max rising to $1,200 from $1,100 for the iPhone 17 Pro Max and $1,000 for the iPhone 16 Pro Max, while the iPhone 18 Pro also carries a $1,200 trade-in credit. Those savings are offset by an activation fee of $35 to $40, tax on the device's full retail price, and an additional $150 for an AppleCare+ plan. In a scenario where a customer trades in a phone qualifying for the highest credits, Funk says the initial cost comes to $291 to $296 for the iPhone 18 Pro and $400 to $405 for the iPhone 18 Pro Max. Funk said he expects a strong iPhone cycle on higher average selling prices and Duo uptake, adding that Siri AI should drive increased interest in upgrades.
Artificial Intelligence › Edge & On-device AI Silicon Demand
AAPL · Pricing · Positive Apple raised prices across its entire flagship iPhone lineup by $100, with the foldable iPhone Duo starting at $1,999.
T · Pricing · Neutral AT&T increased iPhone trade-in incentives to $1,200, offset by activation fees and full-price tax, a mixed effect on the carrier.
TMUS · Pricing · Neutral T-Mobile increased iPhone trade-in incentives to $1,200, offset by activation fees and full-price tax, a mixed effect on the carrier.
VZ · Pricing · Neutral Verizon increased iPhone trade-in incentives to $1,200, offset by activation fees and full-price tax, a mixed effect on the carrier.
BAC · Capital · Neutral Bank of America analyst Michael Funk provided the carrier trade-in analysis and expects a strong iPhone cycle, but the news is not about BofA itself.
AT&T Launches Cricket 5G Home Internet and Free Virtual Care With LifeMD
AT&T has introduced Cricket 5G Home Internet, extending fixed wireless broadband over its existing 5G network for Cricket Wireless customers, and has partnered with LifeMD to give eligible AT&T subscribers free virtual healthcare visits and related telehealth services. The two moves widen AT&T's bundled connectivity offer by adding home broadband and healthcare benefits to its consumer plans, with the LifeMD benefits available to more than 100 million eligible customers. AT&T operates as a large US telecom provider with a market value of about $183.1b, and the company must fund the new perks while still managing heavy 5G and fiber spending and legacy revenue pressure. Analysts' forecasts assume 2.5% annual growth and a 13.4% margin, and the key commercial question is how many Cricket users bundle mobile and home service and what that does to churn. Investors will watch subscriber metrics over the next few quarters, especially Cricket 5G Home Internet adoption, uptake of LifeMD benefits, bundle penetration, fiber plus wireless households, and any disclosure on healthcare-driven engagement or reduced churn tied to AT&T's &More program.
T · Demand · Positive AT&T launched Cricket 5G Home Internet and added free LifeMD virtual care to its plans, widening its bundled connectivity offer to drive subscriber adoption and reduce churn.
LFMD · Demand · Positive AT&T partnered with LifeMD to offer free virtual healthcare visits to over 100 million eligible subscribers, a concrete distribution/end-demand win for LifeMD's telehealth services.
Reaves Fund Flags T-Mobile Sell-Off on Renewed Wireless Competition
Reaves Long Term Value Wrap Strategy reported a 10.55% gain in the second quarter of 2026, outperforming the MSCI USA Infrastructure Index, which fell 6.31%, while cash distributions rose 6.7% from the second quarter of 2025. In its quarterly investor letter, the strategy singled out T-Mobile US as a detractor, citing renewed concerns about competitive intensity in US wireless. The letter said new pricing plans at Verizon and AT&T narrowed T-Mobile's premium gap at retail, while satellite headline risk reached feverish levels around the much-anticipated SpaceX IPO, and it added that it believes Starlink lacks the assets to be disruptive to wireless in the near term but acknowledged the overhang may persist. Rumors that parent company Deutsche Telekom may be interested in consolidating the T-Mobile minority shareholders also pressured the stock, according to the letter. T-Mobile closed at $176.26 per share on September 16, 2026, down 4.90% over the past month and 27.84% over the past year, with a market capitalization of $184.95 billion and a 52-week range of $165.66 to $242.37. The letter also noted that 85 hedge fund portfolios held T-Mobile at the end of the second quarter, unchanged from the previous quarter.
TMUS · Competition · Negative Renewed competitive intensity: Verizon and AT&T pricing plans narrowed T-Mobile's premium gap at retail.
TMUS · Capital · Negative Rumors that parent Deutsche Telekom may consolidate T-Mobile minority shareholders pressured the stock.
T · Competition · Positive New AT&T pricing plans narrowed T-Mobile's premium gap at retail, a competitive gain for AT&T.
VZ · Competition · Positive Verizon's new pricing plans narrowed T-Mobile's premium gap at retail, a competitive gain for Verizon.
DTE.XETRA · Capital · Neutral Rumors that Deutsche Telekom may be interested in consolidating T-Mobile minority shareholders; impact on DT itself unclear.
Wireless Bill Spike Helped Push Fed to First Rate Hike in Three Years
A steep 5.9% jump in Americans' wireless bills from July to August, the largest single-month increase since the Bureau of Labor Statistics began tracking the category nearly two decades ago, helped persuade the Federal Reserve to raise interest rates for the first time in three years. The surge followed T-Mobile's late-July decision to retire over 1,000 older plans, shifting customers to newer offerings at an added cost of as much as $6 per line per month, and AT&T's Aug. 5 rate hikes of $10 to $20 on some older plans plus a $1 increase in a monthly per-line fee. Wall Street analysts estimate the category contributed about 10 basis points of August's 0.3% month-over-month rise in core consumer prices, cementing expectations for the Fed's 25 basis-point hike on Wednesday. Carrier spending on new sites and expanded network capacity topped $30 billion last year, according to the industry trade group CTIA, while taxes, fees, and government surcharges reached a record 27.6% of the average wireless bill, per the Tax Foundation. Bank of America strategists called the August CPI jump in phone service a one-off tied to AT&T's changes, though cheaper options from mobile virtual network operators like Spectrum Mobile and Boost Mobile remain available for consumers willing to shop around.
T · Pricing · Positive AT&T's Aug. 5 rate hikes of $10-$20 on older plans plus a $1 per-line fee increase lifted its wireless revenue and helped drive the CPI phone-service spike.
TMUS · Pricing · Positive T-Mobile's late-July retirement of over 1,000 older plans shifted customers to pricier offerings, adding up to $6 per line per month.
AT&T Partners With LifeMD to Offer Free Virtual Health Care to Over 100 Million Customers
AT&T Inc. has partnered with LifeMD, Inc. to give its eligible wireless and fiber customers complimentary access to virtual care and pharmacy services. Under the agreement, more than 100 million eligible AT&T customers will receive a LifeMD membership worth $228 annually, with the regular $19 monthly fee waived. The benefit is offered through AT&T's &More program, and customers must enroll to activate the complimentary membership, paying only for the visits, prescriptions, or other services they use. The rollout will initially cover about 29 million AT&T customers in 11 states and is expected to expand nationwide in January 2027. The initiative supports AT&T's efforts to broaden customer benefits and strengthen engagement as demand for telemedicine grows, amid competition from Verizon Communications, Inc. and T-Mobile US, Inc., which are advancing their own AI-powered and 5G healthcare offerings.
AT&T Becomes First U.S. Telecom to Offer Amazon Leo Satellite Broadband
AT&T announced a deal with Amazon to become the first telecom company in the U.S. to offer broadband satellite services via Amazon Leo, which uses the tech giant's low Earth orbit satellite network. AT&T, which already offers fiber and 5G, says that with satellite services it is now uniquely positioned to provide reliability by bringing together three critical network layers. The move comes as investors have worried that SpaceX's Starlink internet service might chip away at AT&T's market share, and the company has shown it will not be passive in that area. AT&T stock has declined 12% over the past 12 months while the S&P 500 has risen more than 16%, and it trades at less than nine times trailing earnings with a dividend yield of 4.3%, far above the S&P 500 average of around 1.1%.
Space Economy › Satellite Broadband, MSS & Ground Equipment ▲Demand
T · Demand · Positive AT&T becomes first U.S. telecom to offer Amazon Leo satellite broadband, adding a third network layer and a new service offering.
AMZN · Demand · Positive Amazon's Leo satellite network gains AT&T as first U.S. telecom distribution partner for its broadband service.
SPCX · Competition · Negative AT&T's deal with Amazon Leo is a direct competitive response to SpaceX's Starlink internet service.
Record Phone Service Price Jump Lifts US Core Inflation Above Forecasts
A record jump in the price of cellular phone services helped push a key measure of US inflation above forecasts, likely sealing the deal for a Federal Reserve interest-rate increase next week. The consumer price index excluding food and energy climbed 0.3% in August from a month earlier, according to Bureau of Labor Statistics data out Friday, while the median estimate in a Bloomberg survey called for a 0.2% increase. The 5.9% surge in wireless telephone services prices alone added about a 10th of a percentage point to the core reading, a gauge that largely reflects prepaid and monthly plans offered by cellular carriers. Economists at Bank of America Corp., Barclays Plc and Pantheon Macroeconomics flagged recent plan changes by major carriers like AT&T Inc. and T-Mobile US Inc. as likely culprits, with AT&T saying earlier this year it would implement price increases on certain plans in August and T-Mobile recently retiring some legacy plans. Omair Sharif, president of Inflation Insights LLC, said that while the wireless index added 10bps to the core CPI and core ex-wireless would have been 0.20%, he does not think the Fed will have the luxury of slicing and dicing the data at the meeting next week.
T · Pricing · Positive AT&T's price increases on certain plans in August contributed to the record 5.9% jump in wireless services prices, boosting its revenue per subscriber.
TMUS · Pricing · Positive T-Mobile's retirement of legacy plans helped drive the record surge in wireless telephone services prices, lifting its service revenue.
Apple Unveils $1,999 Foldable iPhone Duo, Shares Jump 3.6%
Apple Inc. unveiled its $1,999 foldable iPhone Duo, sending its shares up 3.6% on the company's most significant iPhone design overhaul in years. AT&T Inc. shares rose 1.6% after CEO John Stankey questioned the new device, calling the technology "not new." Lennar Corporation shares fell 3.5% as mortgage rates moved above 7%, intensifying pressure on housing stocks. Newmont Corporation shares declined 2% as materials emerged as the biggest losing sector of the day.
AAPL · Technology · Positive Apple unveiled its $1,999 foldable iPhone Duo, its most significant iPhone design overhaul in years.
LEN · Monetary · Negative Lennar fell as mortgage rates moved above 7%, intensifying pressure on housing stocks.
T · · Neutral AT&T rose 1.6% after CEO Stankey questioned the foldable device, calling the technology 'not new' — a passing comment with no clear driver.
NEM · · Negative Newmont declined 2% as materials emerged as the biggest losing sector of the day, with no company-specific cause given.
AT&T Touts AI, Fiber Edge and Business Growth at Citi Conference
AT&T executives said at a Citi conference that the company's multiyear investment strategy has strengthened its network assets, reduced leverage and positioned its connectivity businesses for further growth. Chief Financial Officer Pascal Desroches said AT&T has invested more than $150 billion over the past five years and now has what he described as the nation's largest fiber broadband network and its strongest spectrum position to date, crediting the divestitures of DirecTV and Time Warner and a reduced dividend with enabling reinvestment in core operations. Desroches said the company has guided for double-digit earnings-per-share growth this year and plans to return about 100% of free cash flow to shareholders through dividends and share repurchases, and he reiterated guidance for 3% to 4% EBITDA growth this year, accelerating to more than 5% by 2028. Melissa Arnoldi, executive vice president and general manager of AT&T Business, said the segment's nearly 2% year-over-year advanced connectivity service-revenue growth in the second quarter marked an inflection point, with strategic wireline and wireless products now accounting for 80% of the AT&T Business portfolio, a mix reached about a year ahead of the timeframe previously discussed with investors. Desroches said AT&T expects by year-end it will no longer be required to offer copper service across more than 85% of its footprint and will be able to discontinue copper service in about 30% of its footprint, with a full exit from copper infrastructure expected by the end of the decade.
T · Capital · Positive AT&T guided for double-digit EPS growth, 3-4% EBITDA growth, and plans to return ~100% of free cash flow via dividends and buybacks.
T · Demand · Positive AT&T Business advanced connectivity service revenue grew nearly 2% YoY, an inflection point with strategic products at 80% of the portfolio.
AT&T CEO Stankey Calls Starlink a Complement, Not a Threat
AT&T CEO John Stankey said SpaceX's Starlink will not displace established wireless carriers, describing the relationship as a "complementary dynamic" rather than direct competition. Speaking at the Goldman Sachs Communacopia & Tech Conference, Stankey said Starlink "doesn't get through buildings very well" and cannot penetrate high-rises or crowded stadiums, leaving AT&T uniquely positioned to meet customer performance expectations. He acknowledged Starlink's strengths in airlines, rural areas, and IoT applications such as connected vehicles with line of sight to the sky, and said AT&T could aggregate traffic and bring customers to satellite operators including Amazon and SpaceX through the wholesale market. Concerns have been rising on Wall Street that Starlink, after acquiring terrestrial spectrum and deploying advanced satellites, could move from rural broadband into a standalone cellular network and direct mobile competitor, pressuring carriers' enterprise, emergency service, rural, and international roaming revenue. KeyBanc analyst Brandon Nispel said investors are giving Starlink Mobile too much credit despite clear scaling challenges, and that no impact on broadband subscriber growth has been seen.
Space Economy › Direct-to-Device (satellite-to-cell) Competition
Space Economy › Satellite Broadband, MSS & Ground Equipment Competition
T · Competition · Positive AT&T CEO says Starlink is complementary, not a direct mobile competitor, easing fears of satellite-based cellular pressure on carriers.
Apple's Foldable iPhone Duo Faces Skepticism Over Size and One-Off Risk
Apple's first foldable phone, the iPhone Duo, drew a skeptical reception from Wall Street analysts and telecom executives who question whether its design will win over consumers. Jefferies analyst Edison Lee warned in a Thursday note that the Duo's size may be hard to hold and operate with one hand, especially for users with smaller hands, and that supply chain checks indicate Apple would introduce a second-generation foldable next year in a normal size, likely at an even higher price, which could make the Duo a one-off model and prompt some consumers to wait for the second-generation version. New Apple CEO John Ternus debuted the Duo at the company's annual product release event, showing a passport-like design that opens and closes like a book, with a 5.4-inch upfront display and a 7.6-inch display when opened. The iPhone Duo will start at $1,999, in line with speculation ahead of the event, while the most spec'd-out model will cost about $3,199. AT&T CEO John Stankey told Yahoo Finance from the Goldman Sachs Communacopia & Tech Conference that the device is not new compared with foldable phones already on the market, noting that good foldable devices have existed in the Android ecosystem for a couple of years and tend to serve a specific niche rather than gain broad acceptance. Apple shares finished Wednesday's session down slightly and rallied slightly in early Thursday trading.
AAPL · Technology · Negative Apple's first foldable iPhone Duo drew skeptical reception from analysts and telecom execs over its size and one-off risk, with supply-chain checks pointing to a normal-size second-gen model next year.
JEF · Capital · Neutral Jefferies analyst Edison Lee issued a skeptical note on Apple's foldable Duo, but the article gives no impact on Jefferies itself.
T · Competition · Neutral AT&T CEO John Stankey commented that the foldable is not new versus existing Android foldables and serves a niche, but no direct impact on AT&T is stated.
AT&T Elects Fazal F. Merchant to Board of Directors
AT&T has elected Fazal F. Merchant to its board of directors, effective September 8. Merchant, who will serve on the Audit Committee and the Corporate Development and Finance Committee, most recently was President and Chief Financial Officer of Wiz, Inc., a cloud and AI security company, and previously held top roles at Tanium Inc., DreamWorks Animation, and DIRECTV. AT&T Chairman and CEO John Stankey said Merchant's expertise in corporate development, finance, and technology will be invaluable as the company evolves and invests for growth. Merchant also serves on the board of Warner Bros. Discovery and has held board positions at several other companies.
AT&T to Launch Automated Wavelength Quoting First on Connectbase
AT&T will launch automated quoting for its Wavelength Metro and Wavelength Long-Haul services first on Connectbase's Connected World Platform, with services expected to go live in early Q4 2026. This makes Connectbase the first platform where customers and partners can automatically quote AT&T Wavelength services, which provide dedicated connectivity for high-bandwidth workloads. The move streamlines traditionally manual quoting, allowing eligible Connectbase customers to digitally qualify, price, and quote services in near real time. Connectbase CEO Ben Edmond called it a significant industry moment, and AT&T's Ande Hazard emphasized a faster digital path to their network as demand for high-capacity connectivity grows.
Cloud & Digital Infrastructure › API & Integration (iPaaS) ▲Technology
Connectbase · Demand · Positive Connectbase is the first platform to offer automated quoting for AT&T Wavelength services, enhancing its platform's value and customer adoption.
T · Demand · Positive AT&T launches automated quoting for Wavelength services, streamlining sales and meeting growing demand for high-capacity connectivity.
AT&T CEO to Address Shareholders at Goldman Sachs Conference
AT&T Chairman and CEO John Stankey will speak at the Goldman Sachs Communacopia + Technology Conference tomorrow at 4:05 p.m. ET, where he will update shareholders on the company's multi-year growth strategy. AT&T reiterated its financial outlook and capital allocation plan from its second-quarter 2026 earnings release, including plans to return over $45 billion to shareholders during 2026-2028 through dividends and share repurchases, with approximately $10 billion in buybacks this year. The company expects its net debt-to-adjusted EBITDA ratio to return to its target of around 2.5x within about three years. AT&T also highlighted its record quarter for combined fiber and fixed wireless net additions, with over 1 million Advanced Connectivity subscriber additions, and reaffirmed its expectations for improved growth in adjusted EBITDA and adjusted EPS through 2028.
VoIP-Pal Files Third Amended Complaint Against AT&T, Verizon, and T-Mobile
VoIP-Pal.com Inc. has filed its Third Amended Complaint in its federal antitrust action against AT&T Inc., Verizon Communications Inc., and T-Mobile US, Inc., in the United States District Court for the District of Columbia. The amended pleading, filed on September 4, 2026, follows a court ruling that allowed the company to streamline its claims. It asserts four causes of action under the Sherman Act, including unlawful tying, unreasonable restraint of trade, monopolization, and predatory pricing, alleging that the carriers condition access to Wi-Fi calling on the purchase of their retail cellular plans, thereby foreclosing the market for standalone Wi-Fi calling. CEO Emil Malak discussed the case in a CEOCFO Magazine article published today, expressing satisfaction with the revised complaint.
T · Regulation · Negative Named defendant in VoIP-Pal's amended antitrust suit alleging unlawful tying, monopolization, and predatory pricing over Wi-Fi calling.
TMUS · Regulation · Negative Named defendant in VoIP-Pal's amended antitrust complaint asserting Sherman Act claims over Wi-Fi calling tying.
VZ · Regulation · Negative Named defendant in VoIP-Pal's amended antitrust action alleging monopolization and restraint of trade in Wi-Fi calling.
Verizon Leads Telecom Stocks in 2026 as T-Mobile Slips
Verizon Communications has emerged as the clear winner among major telecom stocks in 2026, with shares up 29% year-to-date, while T-Mobile dropped 9%, and AT&T gained 7%. Only Verizon beat the S&P 500's 13% gain, as dividend yield and fiber execution proved more valuable than 5G branding. Verizon's Q2 adjusted EPS of $1.30 beat consensus, and the company raised its full-year guidance to $4.99-$5.04 and expanded buybacks to $4.5 billion. AT&T also beat estimates with EPS of $0.65, accelerated buybacks to $10 billion, and generated $4.67 billion in quarterly free cash flow. T-Mobile reported the highest revenue growth at 7.9% but saw its stock decline amid narrowing subscriber growth and activist pressure on Deutsche Telekom.
SpaceX mobile network could cost up to $130 billion, Bernstein says
Bernstein analyst Douglas Harned estimates that building a SpaceX mobile network to compete with T-Mobile, AT&T, and Verizon could cost between $50 billion and $130 billion. In a note on Monday, Harned said SpaceX is still most likely to partner for its mobile business, but the company continues to indicate a terrestrial buildout is possible. He noted that estimates for a greenfield network range from $15 billion to $200 billion, with common approaches based on Dish's build, which spent about $7.4 billion in cash capex from 2020 to 2024 for roughly 24,000 sites and 268 million pops. SpaceX's total capital expenditures in the second quarter were $18.4 billion, far above analyst estimates of around $6 billion, and JPMorgan analysts project SpaceX will spend $200 billion or more on capex in 2027 and 2028. Shares have rallied from an intraday low of $104.83 on August 3 to $142 on August 31, but MoffettNathanson's Julie Zhu remains cautious, questioning what SpaceX is and staying on the sidelines until expectations reset.
AT&T's Margin Expansion Driven by 5G Scale and Cost Cuts
AT&T's consolidated operating income rose 8.3% year over year to $7.04 billion in the second quarter, with adjusted EBITDA margin expanding to 39.1% from 38%. The company is benefiting from increased scale in its 5G and fiber operations, as well as cost transformation efforts, including a plan to achieve $4 billion in annual cost savings by 2028. AT&T added 432,000 postpaid phone net additions and saw service revenues grow 5.1% in its Advanced Connectivity business. Meanwhile, competitors show mixed results: Verizon's adjusted EBITDA hit a record $13.7 billion, but net income fell 22.9% due to special charges, while T-Mobile's net income rose modestly to $3.24 billion. AT&T shares have declined 11.2% over the past year, and the company trades at a forward P/E of 10.42, below the industry's 37.57.
Etherstack Posts Record H1 Revenue, Guides to 70% Growth
Etherstack PLC reported record first-half revenue of $8.5 million, up 40% year-over-year and equal to 84% of its full-year FY25 total, while guiding to full-year revenue of $17.5 million to $18.5 million, implying roughly 70% growth. The company said annual recurring revenue reached $2.7 million in the half and is expected to exceed $5.5 million for FY26 and hit $10 million by 2028. Major contract wins include a $20 million AT&T deal and a $20 million UK government deal, with an order book above $50 million and potential for additional variable components. CEO David Deacon said one-off ramp-up costs of $350,000 to $400,000 tied to UK and US expansion weighed on first-half margins but have largely washed out, setting up significant margin improvement and stronger free cash flow in the second half. The company also said it is undertaking a strategic review to optimize capital structure and shareholder returns, and that exclusivity with Samsung has ended as it broadens relationships with other switch vendors.
Etherstack PLC · Capital · Positive Record revenue, strong guidance, and strategic review indicate positive financial performance and potential capital optimization.
T · Demand · Positive AT&T is a major customer with a $20 million deal, indicating strong demand for Etherstack's products.
T-Mobile Service Revenue Climbs 9% on Postpaid Growth
T-Mobile US reported second-quarter 2026 total service revenues of $19 billion, up 9% year over year, driven by a 13% jump in postpaid service revenues to $15.9 billion. Postpaid accounts reached 34.7 million, up from 31.5 million a year earlier, helped by acquisitions of UScellular and Metronet, while postpaid average revenue per account rose 2% to $152.91. Management said more than 60% of customers on new accounts are selecting premium rate-plan tiers, supporting ARPA growth. The company faces competition from AT&T, which added more than 1 million Advanced Connectivity customers in the quarter, and Verizon, which added 348,000 broadband subscribers. T-Mobile shares have declined 28% over the past year, and the stock currently carries a Zacks Rank #3 (Hold).
EchoStar Corporation reported second-quarter net income of $8.46 billion on total revenues of $3.58 billion, but the profit surge was driven by a $9.73 billion non-cash deconsolidation gain from restructuring. Stripping away accounting adjustments, EchoStar's retail wireless business lost 118,000 net subscribers to close at 7.38 million, while its pay-TV segment lost 241,000 users. AT&T Inc. reported revenues of $31.56 billion and adjusted EPS of $0.65 on July 22, beating Wall Street estimates of $0.59, and generated $4.67 billion in quarterly free cash flow. Hedge fund holders of EchoStar increased from 90 in Q4 to 102 in Q1, while short interest stands at 23.33% of float; AT&T's hedge fund holders fell from 77 to 72, with short interest at just 1.57% of float.
AT&T and Nvidia Bet Open AI Models Won't Hurt AI Economy
AT&T's chief data and AI officer said OpenAI models already power about 25% of the telecom's total AI usage, with a target of 70% to 80% over time, while Nvidia CEO Jensen Huang has spent the past month leading a consortium championing open-weight AI. AT&T says switching from closed proprietary models to open ones cut costs by 80% to 90% in certain applications, and the company processes an average of 45 billion AI tokens a day through a smart router that picks the cheapest suitable model for each task. AT&T also built its own customized open model called OTel and says its AI initiatives have delivered a fivefold return on investment this year. Nvidia's open-weight cheerleading rests on the Jevons paradox that cheaper AI leads to far more usage, which can eat up just as much computing power as before, though the assumption that usage grows enough to offset efficiency gains remains unproven. AT&T was held by 72 hedge funds as of Q1 2026, down from 77, while Nvidia was held by 275, up from 264.
Artificial Intelligence › Open-Weight Model Developers ▲Demand
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Demand
T · Demand · Positive AT&T's AI initiatives, including use of open models, have delivered fivefold ROI and cost savings, indicating strong adoption and efficiency.
NVDA · Demand · Positive Nvidia's open-weight AI push could increase overall AI usage, potentially boosting demand for its chips.
Hark and AT&T Partner on Connectivity for Future AI Devices
Hark announced a partnership with AT&T to bring the next generation of AI-native consumer devices to market, with AT&T also investing in Hark and collaborating on device certification and network connectivity. The collaboration will enable Hark's devices to operate untethered from phones or Wi-Fi, leveraging AT&T's reliable connectivity and advanced network capabilities. Hark founder and CEO Brett Adcock said the relationship helps further the company's mission to put personalized AI in people's hands, while AT&T COO Jeff McElfresh said Hark's vision aligns with where consumer technology is headed. Hark is developing its own foundation models and hardware to create a new interface to artificial intelligence.
Quantum Computing Stocks Show Strong Analyst Upside in August
Wall Street analysts see significant upside in three quantum computing stocks—Rigetti Computing, IonQ, and D-Wave Quantum—despite their speculative nature and recent volatility. Rigetti leads with an implied upside of about 81.4% based on a $28.81 target versus its $18.67 close, supported by a letter of intent for up to $100 million in CHIPS Act funding and a 185.3% year-over-year revenue jump to $5.14 million. IonQ posted record Q2 revenue of $80.05 million, up 286.8% year over year, raised full-year 2026 guidance to $280–$290 million, and carries a 68.19% implied upside from its $46.84 close. D-Wave's first-half bookings surged to $35.5 million from $2.9 million a year earlier, with AT&T integrating its annealing platform to cut processing time from one hour to under 15 seconds, though its implied upside is the smallest at 19.7%.
AT&T Earnings Estimates Rise as Fiber and Wireless Growth Continue
Analysts have raised their earnings estimates for AT&T over the past 60 days, with fiscal 2026 and 2027 projections up 1.29% to $2.35 and 1.18% to $2.57 respectively. The company added more than 1 million fiber locations in the second quarter, bringing total fiber locations to 38.6 million, and expects to exceed 40 million by end of 2026 and 60 million by 2030. AT&T also added 432,000 postpaid phone customers with churn of just 0.86%, and 279,000 fixed wireless connections. However, the company faces high capital expenditure requirements, with net debt-to-adjusted EBITDA at 2.68X and total debt of $144 billion, and management expects leverage to rise to about 3.2X after the planned EchoStar spectrum acquisition. The stock has lost 14% in the past year, underperforming Verizon's 9.3% gain but outperforming T-Mobile's 29.2% decline, and currently trades at 9.86 forward earnings versus the industry's 33.07.
Starlink’s Direct-to-Cellular Push Could Reshape AT&T’s Investment Case
SpaceX’s Starlink announced plans to enter the direct-to-cellular market and target customers from AT&T and other major carriers, sharpening investor focus on how AT&T’s network investments position it against emerging satellite-enabled competition. AT&T recently expanded its network with a new neutral-host distributed antenna system at Mississippi State University’s Davis Wade Stadium, launched the 5G-enabled AT&T amiGO Jr. Tab 2, and completed US$1.10 billion and €1.20 billion floating-rate bond offerings. The company’s investment narrative projects US$136.1 billion in revenue and US$18.3 billion in earnings by 2029, requiring 2.5% yearly revenue growth and a US$3.0 billion earnings decrease from US$21.3 billion today. Some optimistic analysts forecast about US$139 billion in revenue and US$18.7 billion in earnings by 2029, though Starlink’s entry could pressure wireless churn and margins.
SpaceX Plans Starlink Mobile Service by End of 2027, Challenging Major U.S. Carriers
SpaceX President Gwynne Shotwell announced on an earnings call that Starlink Mobile will begin service at the end of 2027, aiming to acquire customers from AT&T, Verizon, and T-Mobile. The plan sent shares of all three carriers lower on Wednesday before they rebounded Thursday, with T-Mobile gaining 3.75%, AT&T 2.82%, and Verizon 1.12%. T-Mobile CEO Srini Gopalan told the Financial Times the threat is exaggerated, arguing satellites will remain complementary to cellular networks. Starlink's current direct-to-phone service uses about 5 MHz of borrowed spectrum, but following FCC approval of two SpaceX deals totaling $19.6 billion for 65 MHz of EchoStar spectrum with terrestrial rights, and a planned tenfold increase in next-generation mobile satellites, Shotwell said the upgraded service could be roughly 100 times more capable. Analysts remain skeptical, with Craig Moffett of MoffettNathanson telling Reuters it is extraordinarily challenging to imagine a competitive direct-to-consumer service within five years. Shotwell acknowledged the need for a terrestrial component, describing a plan to attach small cellular base stations to Starlink dish mounts rather than building large towers.
Elon Musk Says Starlink Could Generate Over $1 Trillion in Annual Revenue
SpaceX CEO Elon Musk projected that Starlink could eventually generate more than $1 trillion in annual revenue, responding to venture capitalist David Friedberg's bullish assessment on the All-In podcast. Friedberg noted Starlink had 12 million subscribers after doubling its user base year over year, with connectivity revenue reaching $4.29 billion, up 66% year over year, and estimated the business could eventually achieve $40 billion in annual revenue and $30 billion in annual free cash flow. Musk said bandwidth demand will increase massively due to AI and robotics, and even if the communications market merely doubles, he expects Starlink to capture at least 25% of the market outside China, translating to more than $500 billion in annual revenue. He added it is not out of the question that Starlink could carry more than 50% of global internet traffic, potentially generating over $1 trillion annually. SpaceX president Gwynne Shotwell said Starlink Mobile is expected to begin service at the end of 2027 and could attract customers from AT&T, Verizon, and T-Mobile, while T-Mobile's CEO argued satellite connectivity will likely complement traditional cellular networks.
Space Economy › Satellite Connectivity & Direct-to-Device ▲Demand
Space Economy › Direct-to-Device (satellite-to-cell) ▲Demand
SPCX · Demand · Positive Musk projects Starlink could generate over $1 trillion in annual revenue, citing massive bandwidth demand from AI and robotics.
T · Competition · Negative Starlink Mobile could attract customers from AT&T, posing a competitive threat.
TMUS · Competition · Neutral Starlink Mobile could attract T-Mobile customers, but T-Mobile's CEO argues satellite will complement cellular networks.
VZ · Competition · Negative Starlink Mobile could attract customers from Verizon, posing a competitive threat.
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