AT&T CEO Highlights Scale Advantages Over SpaceX Satellite Service

Image: Illustrative image · DHSgov · Public domain · Source

AT&T CEO John Stankey emphasized the company's extensive low-band spectrum and large-scale network as key advantages over SpaceX's emerging direct-to-device satellite service, citing years of investment and superior indoor coverage.

During AT&T's Q3 earnings call on October 21, 2026, CEO John Stankey addressed competitive concerns posed by SpaceX's new direct-to-device (D2D) satellite service. He argued that AT&T’s established scale and network assets provide significant advantages over SpaceX's offering. Stankey emphasized AT&T's substantial holdings of low-band spectrum—operating six to eight carriers in metropolitan areas—and the deployment of these frequencies not only on macro cell sites but also within indoor environments such as high-rise buildings, hospitals, and stadiums.

Stankey contrasted this with SpaceX’s recent acquisition of low-band spectrum, which the satellite firm intends to pair with Wi-Fi to provide indoor mobile connectivity. He noted the challenge in relying heavily on Wi-Fi for mobile services, estimating it accounts for 85% to 93% of mobile connectivity but acknowledged uncertainties regarding user access management like portals and passwords.

Commenting on the investment and time needed to build a network that delivers the high performance customers expect, Stankey stated, “I think it takes a lot of years and a huge level of investment to get to the kind of performance levels that customers have become accustomed to in scaled networks.” Highlighting that 98% of the mobile data traffic occurs within areas already covered by AT&T's network, he expressed confidence in the company's position, saying, “I feel really good about where we’re at.”

Stankey downplayed the impact of SpaceX's single carrier of low-band spectrum compared to AT&T's multiple carriers, urging caution not to overestimate the competitive threat. SpaceX's president Gwynne Shotwell had recently outlined plans to leverage their low-band spectrum alongside widespread Wi-Fi and Starlink installations to serve business and consumer customers.

Regarding AT&T’s financials, the company reported revenue growth of 5.3% year-over-year to $32.3 billion for Q3 2026, driven by wireless, fiber, and Lumen's mass markets fiber services. Total service revenue increased 3.8%, the best consolidated growth in over four years, reaching $26.3 billion. Equipment revenue rose 12.1% to $6 billion.

AT&T added 379,000 post-paid phone subscribers despite a slight decline compared to the prior year, with low churn rates. Net additions for consumer and business internet services surged by 25.4% to a record 769,000, including considerable fiber and fixed wireless access gains. Total internet connections climbed 29.3% to 16.2 million. Combined connectivity net additions surpassed 1 million for the second consecutive quarter, contributing to advanced connectivity service revenue growth of 6.1% to $23.9 billion.

The company also reported converged customer growth, with 42.8% of households using its fiber or Internet Air services also subscribing to AT&T's mobile offerings.

Overall, Stankey underscored the importance of scale and investment in network infrastructure as critical to staying competitive against emerging satellite-based mobile services like those planned by SpaceX.