AT&T CEO Calls SpaceX's Satellite Phone Strategy 'Not Viable' as Fiber Bet Accelerates

AT&T CEO John Stankey said SpaceX's plan to compete with legacy telecom carriers via satellite-based mobile service is "not a viable strategy," citing prohibitive economics and technical barriers. His comments follow SpaceX's August 2026 public listing and Starlink President Gwynne Shotwell's pledge to capture customers from incumbent carriers. AT&T announced a $3 billion deal with Corning on September 29, 2026, to supply fiber infrastructure for its internet business, asserting fiber is three times faster than satellite. Stankey said ground-network economics for SpaceX would mirror the cost of building a traditional macro network, exceeding an estimated $100 billion. Starlink reported 12 million subscribers and 10,200 satellites across 167 countries as of June 30, 2026. Connectivity accounts for 55% of SpaceX revenue, but analysts including Bernstein's Madison Rezaei remain skeptical that satellite can replace terrestrial carrier networks.