NEW YORK: SpaceX is positioned to significantly reshape the US communications industry as its satellite internet service Starlink continues to expand, according to a new research note from investment firm Oppenheimer.
The brokerage said the growth of Starlink could increase competitive pressure on traditional broadband and telecommunications providers, including AT&T, Verizon and T-Mobile, as satellite-based connectivity gains a larger share of the market.
Oppenheimer estimated that the US communications industry is worth approximately $1.6 trillion and said SpaceX’s expanding presence could alter how internet and communication services are delivered over the coming decade.
The firm also raised its projection for the global space economy, increasing its estimate for SpaceX-related space revenue to $800 billion by 2035, up from a previous forecast of $500 billion.
Starlink growth expected to challenge traditional providers
According to Oppenheimer, Starlink’s growing subscriber base and expanding service capabilities could place additional pressure on cable and broadband companies that are already facing customer losses.
The brokerage increased its forecast for Starlink’s US broadband subscribers to 15 million by 2030, compared with an earlier estimate of 10 million.
Analysts said the company’s satellite network could strengthen its position in key communications markets by improving customer retention and expanding its range of services.
IPO expected to draw investor attention
The report comes ahead of SpaceX’s anticipated stock market debut later this month.
Reuters previously reported that the company is targeting a valuation of approximately $1.75 trillion when it begins trading on Nasdaq on June 12.
Market observers say much of that valuation is tied to the performance of Starlink, which has more than 10 million subscribers worldwide, as well as SpaceX’s launch business, which has played a major role in expanding commercial access to space.
Oppenheimer also noted that future developments could allow SpaceX to compete more directly in broader communications markets, including mobile connectivity and consumer devices.
The report highlights growing investor interest in the intersection of satellite technology, telecommunications and the expanding commercial space industry.
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