Antipathy toward SpaceX may cost T-Mobile its existence
Apparently, Deutsche Telekom wants full control of T-Mobile to protect it from SpaceX.
T-Mobile is the best fit for SpaceX. | Image by PhoneArena
With AT&T, T-Mobile, and Verizon spurning SpaceX Starlink's apparent ambitions to sign a Mobile Virtual Network Operator (MVNO) deal, the space company is left with few options. It could either build its own network from scratch or buy one of the Big Three carriers. The latter increasingly looks like the likely path.
T-Mobile has not put itself up for sale. SpaceX hasn't ruled out buying a carrier, but hasn't said anything to that effect recently either.
However, SpaceX has been amassing spectrum, and it can't be for nothing. Wolfe Research previously suggested that T-Mobile would be the best choice for SpaceX. Now, TD Cowen analyst Gregory Williams is echoing that recommendation.
Per Williams, if SpaceX fails to lease network access from one of the Big Three or simply wants the fastest path to owning a network, it should scoop up T-Mobile.
T-Mobile is the right fit due to its growth rate, unconventional culture, pure wireless focus, and existing partnership with Starlink.
In April, it was reported that T-Mobile parent Deutsche Telekom (DT) was planning to fully merge with it. Some thought DT just wanted to ride T-Mobile's coattails. Others theorized that the consolidation would make it easier for T-Mobile to secure capital to expand its fiber footprint.
Williams believes DT may have smelled a takeover bid from SpaceX, which is why it wants maximum control over the subsidiary.
The market reacted positively to the rumored SpaceX and T-Mobile merger on Thursday.
SpaceX has made it clear it wants to be the preferred connectivity experience for its customers. While it has bought spectrum from EchoStar and likely snapped up more licenses during the recent AWS-3 auction, it needs a massive haul to rival the Big Three.
Buying T-Mobile allows it to bypass that build-out phase.
BNP Paribas previously noted that while SpaceX needs some land-based infrastructure to improve performance, a half-hearted approach won't win customers over. For now, the company may deploy limited terrestrial support, but it could be a while before it completely upends the cellular industry.
Even without a cellular network, research firm Oppenheimer expects it to disrupt the $1.6 trillion communications industry, causing subscriber losses for AT&T, Verizon, and T-Mobile.
The bottom line is that SpaceX is going to inflict pain on the Big Three, with or without its own network. That sort of competitive pressure is crucial, as another regional carrier called it quits recently.
Asked to buy T-Mobile (again)
T-Mobile has not put itself up for sale. SpaceX hasn't ruled out buying a carrier, but hasn't said anything to that effect recently either.
However, SpaceX has been amassing spectrum, and it can't be for nothing. Wolfe Research previously suggested that T-Mobile would be the best choice for SpaceX. Now, TD Cowen analyst Gregory Williams is echoing that recommendation.
Per Williams, if SpaceX fails to lease network access from one of the Big Three or simply wants the fastest path to owning a network, it should scoop up T-Mobile.
T-Mobile is the right fit due to its growth rate, unconventional culture, pure wireless focus, and existing partnership with Starlink.
Should SpaceX fail to reach a (wholesale network) deal, or simply desires owners’ economics and quickly, T-Mobile seems to us the clear choice given their momentum, maverick culture, pure-play wireless provider, and existing Starlink partnership.
Gregory Williams, TD Cowen analyst, June 2026
Puzzle pieces falling into place
In April, it was reported that T-Mobile parent Deutsche Telekom (DT) was planning to fully merge with it. Some thought DT just wanted to ride T-Mobile's coattails. Others theorized that the consolidation would make it easier for T-Mobile to secure capital to expand its fiber footprint.
Williams believes DT may have smelled a takeover bid from SpaceX, which is why it wants maximum control over the subsidiary.
The market reacted positively to the rumored SpaceX and T-Mobile merger on Thursday.
SpaceX would need a willing seller. And with T-Mobile the best fit, this SpaceX dynamic could be what motivated T-Mobile owner Deutsche Telekom to seek total ownership and control of its U.S. cash-cow subsidiary.
Gregory Williams, TD Cowen analyst, June 2026
Why should SpaceX buy T-Mobile?
Does SpaceX even want to enter the market?
SpaceX has made it clear it wants to be the preferred connectivity experience for its customers. While it has bought spectrum from EchoStar and likely snapped up more licenses during the recent AWS-3 auction, it needs a massive haul to rival the Big Three.
Buying T-Mobile allows it to bypass that build-out phase.
What's likely
BNP Paribas previously noted that while SpaceX needs some land-based infrastructure to improve performance, a half-hearted approach won't win customers over. For now, the company may deploy limited terrestrial support, but it could be a while before it completely upends the cellular industry.
Even with infinite satellites, indoor coverage from space is always going to be inferior, as the signal comes from above, and so having some terrestrial wireless infrastructure beaming signals horizontally may be a necessity.
BNP Paribas, June 2026
Even without a cellular network, research firm Oppenheimer expects it to disrupt the $1.6 trillion communications industry, causing subscriber losses for AT&T, Verizon, and T-Mobile.
The bottom line is that SpaceX is going to inflict pain on the Big Three, with or without its own network. That sort of competitive pressure is crucial, as another regional carrier called it quits recently.
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