AT&T Chief Executive John Stankey said Starlink has poor indoor penetration and works best only with an unobstructed line of sight. According to Sina Finance, he said low-band spectrum can penetrate some buildings to a degree, but not high-rise walls or crowded stadiums such as those used for World Cup events. Stankey said Starlink can provide strong broadband service in aviation, rural and remote areas, and some Internet of Things use cases, such as vehicle-mounted devices that are mostly outdoors and can see the sky. He said there is also a complementary relationship, adding that AT&T could direct customers with the remaining 2% of special use cases to satellite operators, including Amazon or SpaceX. Wall Street has grown more concerned that Elon Musk's Starlink is moving beyond rural broadband and into mobile communications, potentially challenging AT&T, Verizon and T-Mobile. The article said AT&T and T-Mobile shares have lagged the S&P 500 this year, while Verizon shares have risen 22% as cost cuts under new Chief Executive Dan Schulman improved results. KeyBanc analyst Brandon Nispel said wireless remains an attractive sector because of its growth outlook and low valuations. He said investors may be overestimating Starlink's mobile business potential while underestimating the challenges of scaling it.
