Starlink MVNO Q&A, SPOT Inv. Day Synch, Sphere Abu Dhabi $1.7B, Music Label Warming Cycle?

Research evidence excerpt

Starlink MVNO Q&A, SPOT Inv. Day Synch, Sphere Abu Dhabi $1.7B, Music Label Warming Cycle?

May 17, 2026

Investment Conclusion

Exhibit 1 - Wolfe Media, Entertainment, and Telecom Best & Worst Weekly Performers

(Figures in percentages)

Source: FactSet, Wolfe Research, LLC.

Question of the Week and Our Response:

Question: Each of the Big 3 US MNOs has stated that they will not provide MVNO services to Starlink. Do you believe

them, and might this change with events?

Our Response: We think the Big 3 are sincere in currently rejecting a Starlink MVNO agreement, but today’s “hard

no” could soften as events play out. Following a SpaceX IPO, we expect Elon Musk to more aggressively pursue U.S.

mobility. Wireless and broadband remain among the world’s largest connectivity profit pools, and Musk has historically

shown a willingness to disrupt capital-intensive, low-ROIC industries to advance a larger ecosystem strategy.

The key swing factor is spectrum. We believe Starlink is likely to participate in upcoming auctions, including Auction 113

and potentially upper C-band in 1H27, building on AWS-3 holdings acquired from EchoStar. While spectrum ownership

alone is insufficient without roaming or MVNO access, a partial terrestrial RAN paired with a LEO network could support

many core mobility use cases. Reportedly, Gen 3 satellites may enable 4G functionality initially, with 5G capability over

time. In that scenario, DTC could address outdoor coverage while satellite broadband supports in-home connectivity,

with the terrestrial RAN covering public, enterprise and dense urban locations.

The Big 3 are likely evaluating this risk already. If investors begin discounting telecom equities on fears of a credible