AT&T's CEO said in July 2026 that SpaceX's Starlink is "coming to the game very late" and isn't a serious threat to his company. The remarks came after a brutal stretch for telecom stocks.

Three weeks earlier, both AT&T and Verizon had what MarketWatch called their worst week in years. The cause: growing fear that Starlink, SpaceX's satellite internet business, could steal customers from traditional wireless carriers. Starlink had about 12 million subscribers at the time.

The sell-off was fast. But several analysts thought it went too far. MarketWatch reported on July 6 that analysts considered the stock drop possibly excessive, since Starlink's threat to wireless carriers isn't immediate.

Barron's highlighted analyst Supino on July 23 as similarly unconcerned. His argument: it would take years for Starlink to build a network that could seriously challenge major wireless carriers. That's because running a mobile network requires physical infrastructure, government licenses to use specific radio frequencies, and established retail relationships — advantages the carriers have spent decades building.

This concern isn't new. Reuters reported back in March 2025 that AT&T and Verizon were already downplaying competition from satellite internet providers like Starlink. The fact that executives were talking about the threat more than a year before the stock drop suggests investors were worried well before the panic hit.

One company, though, seemed to dodge the fallout. MarketWatch noted on June 29 that Charter Communications wasn't hit by the same "SpaceX overhang." Charter was framed as a potential "frenemy" of SpaceX — and its stock was rising while AT&T and Verizon's were falling.

The reason for the split is structural. Charter's business looks different from the wireless carriers' business. MarketWatch suggested the overhang on telecom stocks could lift if SpaceX signs a deal — meaning the market isn't just pricing in the risk of competition, but also the possibility of a partnership.

For anyone holding AT&T or Verizon stock, the core question is whether Starlink's 12 million subscribers pose a real threat to the wireless business or whether the fear got overblown. The analyst pushback — Supino's years-to-build argument, the "not imminent" assessment from July 6, and the CEO's own dismissal — all lean toward overblown. But the stock market already delivered its verdict, and it was harsh.

The competitive question comes down to technology. Starlink's 12 million customers use it for home internet, not mobile phone service. Jumping from fixed broadband to replacing mobile networks is a big leap, and Supino's skepticism reflects that gap.

What we don't know yet is whether SpaceX signs a deal that could ease the competitive fears. Until then, telecom investors are stuck in an awkward spot. The threat from Starlink is real enough to move stock prices, but by most analyst assessments, it isn't close enough to justify how far those stocks fell.