TMUS CEO Dismisses SPCX’s Starlink Mobile Threat — Why He Questions The Customer Gap Elon Musk Is Targeting

Srini Gopalan questioned what customer gap SpaceX’s planned mobile service would fill as T-Mobile targets further broadband and rural-market growth.

• Gopalan said satellite connectivity would remain “complementary” to existing mobile networks, particularly in rural areas.
• Elon Musk said during SpaceX’s earnings call that Starlink’s terrestrial cellular network could offer better connectivity and higher bandwidth than existing cellular providers.
• Retail sentiment on Stocktwits remained ‘bullish’ for both TMUS and SPCX.

T-Mobile US Inc. (TMUS) CEO Srini Gopalan said the threat posed to mobile operators by satellite companies such as Elon Musk’s Starlink has been exaggerated, questioning what consumer problems a satellite-based cellular service would solve.

Gopalan’s comments came before Musk confirmed that SpaceX (SPCX), which owns Starlink, plans to build out a U.S. mobile service.

At the time of writing on Friday, TMUS stock was trading 1.45% lower, while SPCX shares had jumped around 13%.

TMUS CEO Questions Starlink’s Customer Gap

“You’ve got to ask the question of ‘What is the gap in the market that they’re looking to serve?’” Gopalan told the FT in an interview.

“I always prefer starting these conversations back from the customer: Why would a customer buy a new cellular service? Where do they go? What’s their differentiation? It’s clearly not having a broad network,” he said.

Musk Bets On Higher-Bandwidth Satellite Service

During SpaceX’s earnings call on Tuesday, Musk said Starlink’s terrestrial cellular network would “probably” have better connectivity and “higher bandwidth than what is currently available from cellular providers.”

Gwynne Shotwell, president and chief operating officer of SpaceX, said she anticipated being able to “acquire quite a few” customers from the big three U.S. mobile network operators — AT&T, Verizon, and T-Mobile. SpaceX would launch Starlink Mobile satellites next year and planned to begin its service at the end of 2027, Shotwell added.

TMUS CEO Sees Satellite Service As ‘Complementary’

Gopalan said he believed satellite technology would remain “complementary” to existing networks. To date, SpaceX has granted telecom groups, including T-Mobile, access to its satellites to supplement their existing network coverage in rural areas.

T-Mobile’s chief also refused to comment on reports that the company has been in talks with its majority owner Deutsche Telekom over a mega-merger that would value the combined company at an estimated $267 billion.

“Look, there’s nothing much to say…we don’t comment on speculation,” he told FT, adding that the noise around the situation had not distracted the business.

TMUS, SPCX Stocks: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for TMUS was ‘bullish,’ unchanged in the past 24 hours, while message volume was ‘normal’ at the time of writing. Retail sentiment for SPCX was ‘bullish,’ unchanged in the past 24 hours, while message volume was ‘extremely high’ at the time of writing.

TMUS stock has lost around 12% year-to-date, while SPCX shares are down nearly 15% since their public debut in June.

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