AT&T CEO John Stankey recently questioned the viability of SpaceX's direct-to-cell Starlink project. During a Tuesday interview, Stankey argued that fiber-optic infrastructure remains superior to satellite-based connectivity, claiming fiber offers triple the speed of satellite networks.
Stankey noted that the costs associated with building a macro cellular network via Starlink would be substantial. He also cited legal constraints, stating that companies cannot transmit cellular signals from private residences without proper authorization. He concluded that there are numerous reasons why the SpaceX plan faces significant challenges.
Earlier this month, T-Mobile US CFO Peter Osvaldik also expressed skepticism regarding the threat Starlink poses to traditional carriers, citing fundamental physical limitations. Meanwhile, SpaceX recently secured FCC approval to provide international telecommunications services, supporting its goal to offer direct-to-cell 5G connectivity.
The FCC is currently evaluating the expansion of spectrum resources for satellite broadband. A vote is scheduled for September 30 to potentially release an additional 1000 MHz of spectrum for these services.
