T-Mobile US Inc. (NASDAQ:TMUS) CEO Srini Gopalan dismissed the threat from Elon Musk’s planned Starlink Mobile service as "exaggerated," questioning why consumers would leave established carriers even as SpaceX (NASDAQ:SPCX) promises higher bandwidth, satellite coverage and a terrestrial network aimed at winning customers from T-Mobile, AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).
Starlink Mobile Raises Questions Over Consumer Appeal
"You’ve got to ask the question of ‘What is the gap in the market that they’re looking to serve?’" Gopalan told the Financial Times on Thursday. "Why would a customer buy a new cellular service? Where do they go? What’s their differentiation? It’s clearly not having a broad network."
SpaceX President Gwynne Shotwell said Starlink intends to become "a true mobile service" and expects to "acquire quite a few" customers from the Big Three. Reuters reported earlier this week that SpaceX bought 65 MHz of EchoStar Corp. (NASDAQ:ECHO) spectrum for $19.6 billion through two deals, strengthening its push into a market that has already pressured traditional telecom stocks.
Musk said Starlink’s planned terrestrial network would "probably" offer better connectivity and "higher bandwidth than what is currently available from cellular providers." Shotwell said SpaceX plans to launch Starlink Mobile satellites next year and start service by the end of 2027.
Satellite Networks Face Tough Terrestrial Competition
Analysts say matching incumbent networks will be difficult. New Street Research analyst David Barden told Reuters earlier this week that it "makes no sense" for SpaceX to replicate networks built over three decades with about 1,000 MHz of spectrum using only 65 MHz.
Gopalan argued satellite service will remain "complementary" to terrestrial networks. T-Mobile already uses Starlink through T-Satellite, which connects compatible phones outside normal cellular coverage. The FCC has authorized SpaceX to provide supplemental coverage using T-Mobile spectrum and approved 7,500 additional Gen2 satellites in January to support enhanced mobile connectivity.
The partnership has widened. T-Mobile launched SuperBroadband in April, combining its 5G network with Starlink backup for remote businesses. T-Satellite also supports apps including WhatsApp, Google Maps and X in dead zones.
That evolution builds on T-Mobile’s earlier Starlink-powered satellite data rollout and comes as SpaceX pushes Starlink deeper into direct-to-phone connectivity.
T-Mobile Maintains Postpaid Growth Outlook
T-Mobile added 277,000 postpaid net accounts in the second quarter of 2026, beating consensus estimates, though additions fell 13% from a year earlier.
The company expects roughly 250,000 postpaid net account additions in the third quarter as it migrates customers to newer, higher-priced plans, with about 60% of new customers currently choosing its most premium offerings.
"I think the most misunderstood thing from an investor perspective is just the amount of growth left in this business," Gopalan said. "And I think we’re ridiculously undervalued right now."
According to Benzinga Edge Rankings, TMUS ranks in the 59th percentile for Quality and carries negative ratings across its short, medium and long-term price trends.
Price Action: T-Mobile US Inc. shares were trading 0.19% lower at $179.62 in pre-market trading on Friday.
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