US TELECOMS & CABLE : Telecom (& other) Takeaways from the SpaceX S-1

Research evidence excerpt

US TELECOMS & CABLE : Telecom (& other) Takeaways from the SpaceX S-1

EQUITIES

TELECOM OPERATORS

US TELECOMS & CABLE

Telecom (& other) Takeaways from the SpaceX S-1

Like almost everyone reading this, we’ve been pouring through the SpaceX S-122 MAY 2026

Sector Research Report We are confident most telecom investors have (like us) been singularly focused on the SpaceX S-1

Production time: 06:04* (London time) since it dropped on Wednesday afternoon. As a result, we don’t want to bore you by summarizing

Research Analysts & Publishing Entities the filing in detail, but thought it might be helpful to briefly catalogue what we see as the key

Sam McHugh telecom takeaways (with a few non-telecom insights from our colleagues at the end).

BNP Paribas Securities Corp1

+1 212 471 6569

sam.mchugh@us.bnpparibas.com SpaceX’s plans for Residential Broadband are more disruptive than we expected

Cable companies in the US have so far only discussed the impact Starlink has had on subscriber

Philip Burnett trends in rural areas. While the S-1 makes clear Starlink will continue to grow in these markets, it

+1 929 715 1478 also emphasizes the company’s intention to attack suburban and urban markets where it will have

philip.burnett@us.bnpparibas.com to compete with wireline operators. At the same time, it lays out expectations for Starlink

broadband ARPU to continue declining for the next few years, suggesting a willingness to competeNicco Liu, CFA

BNP Paribas Securities Corp1 aggressively on price. This all adds conviction to our bearish thesis on broadband (more detail

(+1) 212 710 9818 here, here, and here), as incremental aggression from SpaceX is likely to only further exacerbate

nicco.liu@us.bnpparibas.com

already worsening competitive dynamics.

Jakob Bluestone, CFA