Telco Initiation—A Prisoner's Dilemma of Satellite Disruption

Research evidence excerpt

Telco Initiation—A Prisoner's Dilemma of Satellite Disruption

Equity Research

Industry Update — July 8, 2026

Wireless Carriers

Telco Initiation—A Prisoner's Dilemma of

Satellite Disruption

Our Call Steven Cahall

We initiate w/ neutral or negative ratings on all 3 Telcos. We see Starlink as a near- Equity Analyst | Wells Fargo Securities, LLC

Steven.Cahall@wellsfargo.com | 212-214-8240

term gainer in b'band vs FWA, & longer-term disruptor to wireless. We prefer VZ on the

Eric Luebchow, CFAstrongest case for an MVNO. We see option value at TMUS & downside risk at T.

Equity Analyst | Wells Fargo Securities, LLC

Eric.Luebchow@wellsfargo.com | 312-630-2386

Star-crossed. SPCX's connectivity ambitions means the key debate for the Wireless Christopher Pei

Carriers is how the market will change with a new competitor in broadband, & then likely Associate Equity Analyst | Wells Fargo Securities, LLC

in mobile. Cable's decline is a cautionary tale. Starlink is adding capacity w/ V3 that may Christopher.Pei@wellsfargo.com | 212-214-5308

translate into b'band share gains—likely the 1st negative Telco catalyst—by '27-'28. The Omar Mejias

competition narrative should grow w/ spectrum auctions + MVNO debates. Like Cable, we Equity Analyst | Wells Fargo Securities, LLC

see a hyper focus on net add pressure & valuation downside. Omar.Mejias@wellsfargo.com | 787-370-9353

Wojtek Majerczak

The Prisoner's Dilemma. If all 3 Carriers resist an MVNO then SPCX may well build the Associate Equity Analyst | Wells Fargo Securities, LLC Wojtek.Majerczak@wellsfargo.com | 212-214-5480

4th wireless network. Tech projects appear underway. The cost may seem prohibitive—

we est ~$67bn over the next 10 yrs—but there could be strategic value like AVs & robots,

& the bill is w/in SPCX capex ests.