AT&T CEO Plays Down SpaceX’s Starlink Low-Band Spectrum Deal

AT&T CEO John Stankey emphasized the carrier’s network performance and indoor coverage as SpaceX pursues a low-band spectrum deal to broaden Starlink’s reach in the U.S. mobile market.

Speaking on AT&T’s third-quarter earnings call Wednesday, Stankey cautioned against putting too much weight on a single low-band spectrum holding. “I wouldn’t over-rotate on what I would call one carrier of low band spectrum,” he said, referring to Starlink. He pointed to AT&T’s years of investment in dense urban and suburban areas and described network performance as a competitive strength.

SpaceX has agreed to acquire a nationwide portfolio of low-band spectrum licenses as part of its effort to become a major U.S. mobile provider. The proposed deal covers spectrum in the 800 MHz band. It would add terrestrial wireless capacity alongside Starlink’s satellite network.

Stankey also described a role for satellite connections in places where building physical infrastructure is too expensive. Satellite service can complement fiber and 5G networks in those areas, he said. “I think LEO constellations are fantastic for delivering bandwidth to rural areas.” LEO refers to low-Earth orbit, where Starlink’s satellites operate.

The low-band frequencies are designed to improve signal penetration through buildings and are supported by most existing mobile devices. That makes indoor service a distinct part of the coverage challenge. Stankey said indoor usage can represent a significant network load even in places with robust Wi-Fi.

AT&T has focused on strengthening signal support in crowded settings such as stadiums and hospitals. Those venues can put heavy demands on mobile networks, Stankey said, underscoring why indoor performance remains important as satellite providers expand their reach.

SpaceX is also expanding its satellite network. SpaceX Chief Operating Officer Gwynne Shotwell said Tuesday the Federal Communications Commission had approved the launch of 15,000 V2 satellites. Shotwell and Elon Musk also said Starlink Mobile had more than 22 million monthly users.

The spectrum transaction still requires FCC approval before it can close.