AT&T CEO argues fiber is superior to Starlink’s satellite-based phone plans

• AT&T’s CEO has said that Starlink’s plans to launch a rival service aren’t “viable”
• They argue that fiber is simply so much faster than satellite connectivity that it would be impossible for Starlink Mobile to compete
• However, AT&T has also announced plans with Verizon and T-Mobile to use satellites to get rid of dead zones

We’ve heard a lot lately about Starlink’s plans to launch a traditional mobile carrier aimed at rivaling the likes of AT&T, T-Mobile, and Verizon — and perhaps even making such a service available globally. But if AT&T’s CEO John Stankey is to be believed, it probably isn’t happening — or at least not anytime soon.

Speaking to Axios, Stankey claimed that Musk’s plan is “not a viable strategy,” in part because it’s heavily reliant on Starlink satellites rather than fiber infrastructure. When it comes to fiber, Stankey said “nothing beats it,” because it’s three times faster than satellite connectivity, adding that “satellite, at its best — if everything happens right over the next 10 years” — is “still not going to beat fiber.”

Of course, Musk probably recognizes this, as Starlink’s plans involve more traditional network infrastructure too, with the company having previously outlined its plans to install small cellular base stations alongside Starlink dishes on homes and businesses.

But Stankey has his doubts about that too, saying that the endeavor would be enormously expensive, and that “there’s all kinds of other issues, like you can’t radiate cellular signals from somebody’s house without their permission, unless somebody changes the law on that. We can go down a whole bunch of reasons why that won’t effectively work.”

It could be a long road for Starlink Mobile

Some analysts are also unconvinced by Musk’s plans, with Bernstein analyst Madison Rezaei saying, “Starlink Mobile may fill a meaningful gap in the market (i.e., remote, rural, maritime, disaster scenarios), but we believe it is a long way from replacing terrestrial carrier networks.”

On the other hand, Alex Besen, CEO of the Besen Group, was a bit more positive about Starlink Mobile’s chances in a conversation with Fierce Network, saying of conventional carriers that “maybe not a majority of it, but definitely, they’re going to lose” some of the consumer market.

And even if Stankey claims not to be worried, it seems he’s not taking any chances, with AT&T, T-Mobile, and Verizon having recently launched a joint venture to get rid of coverage dead zones through satellite connectivity.

So whether Musk’s Starlink Mobile plans are viable or not, it does seem that increasingly carriers will use a mix of masts, fiber, and satellites to service their customers.