SpaceX’s growing satellite internet business could disrupt the $1.6 trillion U.S. communications industry, according to a new analysis from investment firm Oppenheimer, highlighting the increasing competitive threat posed by Elon Musk’s company to traditional broadband providers.
In a note released Wednesday, Oppenheimer said SpaceX’s satellite broadband division, Starlink, is positioned to reshape the communications landscape as its network expands and gains more customers. The brokerage identified legacy broadband companies, including AT&T, as among the firms most exposed to the shift.
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The report comes as SpaceX prepares for what could become the largest initial public offering in history. Reuters reported earlier this week that the company is targeting a valuation of roughly $1.75 trillion and plans to raise at least $75 billion through its Nasdaq listing.
Oppenheimer also raised its estimate for global space-related revenue in 2035 to $800 billion, up from a previous forecast of $500 billion, reflecting growing confidence in the commercial potential of satellite communications and related technologies
Starlink has emerged as a key driver of SpaceX’s growth strategy. The service provides broadband connectivity through a constellation of low-Earth orbit satellites and has expanded rapidly in residential, commercial and government markets.
The warning from Oppenheimer had an immediate impact on telecom stocks. AT&T shares fell sharply after the brokerage downgraded the company, citing concerns that investors may be underestimating the long-term competitive risks posed by satellite broadband services.
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The assessment highlights how communications have become a critical battleground in the broader technology race. While SpaceX is best known for rocket launches and space exploration, Starlink is increasingly viewed as one of the company’s most valuable commercial assets.
For consumers and businesses, the rise of satellite-based internet services could increase competition across the broadband sector, particularly in underserved and rural areas where traditional infrastructure remains limited. Whether Starlink can significantly erode the market share of established telecom providers remains uncertain, but Oppenheimer’s report signals that investors are taking the possibility seriously.