Global ex-Asia Telecoms: Starlink: Extra-terrestrial read-across for telcos

Research evidence excerpt

Global ex-Asia Telecoms: Starlink: Extra-terrestrial read-across for telcos

4 August 2026

Global ex-Asia Telecoms EquitiesTMT

Starlink: Extra-terrestrial read-across for telcos Global

◆ SpaceX IPO raises market concerns about disruption to Madhvendra Singh*, CFA

traditional telcos, but we see them more as complementary Senior Analyst, TMT HSBC Bank Middle East Limited, DIFC

madhvendra.singh@hsbc.com

◆ Regulation, technological barriers, and (lack of) government +971 450 93348

support could limit Starlink’s growth in the consumer space Phani Kanumuri

Analyst, TMT

HSBC Securities (USA) Inc.

◆ Our preferred picks in our coverage are MTN, Mobily, and phani.kanumuri@us.hsbc.com

Telefonica Brasil in EM; T-Mobile in the US +1 240 709 8135

Ali Naqvi*

Senior Global TMT Analyst

Starlink: A partner not a disruptor: We view SpaceX’s Starlink satellite internet HSBC Bank Middle East Limited, DIFC ali.naqvi@hsbc.com

service as largely complementary to incumbent telecom operators, helping to bridge +44 20 7992 2176

connectivity gaps rather than present a near-term competitive threat, especially in

emerging markets. Although Starlink has ambitions to compete with traditional telecoms, * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

we think it is unlikely to emerge as a major threat: 1) government or regulatory

approvals, which Starlink likely requires to navigate the regulatory maze, have

historically been challenging for several operators, and lack of licensing could prove to

be a major hurdle; 2) performance could be constrained by technical limitations in urban

and suburban environments; 3) lack of government support, as local operators or local