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Direct-to-device satellite push is seen as favoring tower REITs
MarketBeat Ratings argues that space-based cellular is likely to complement, not replace, macro towers because of bandwidth and urban network density economics.
Space based direct to device competition is intensifying, with SpaceX moving toward Starlink Mobile and other players preparing satellite arrays for consumer availability, reviving questions about whether terrestrial telecom infrastructure could become obsolete. MarketBeat Ratings says the market sometimes punishes ground telecom stocks on disruption fears, but the underlying physics and capital requirements point to a different outcome.
According to MarketBeat Ratings, the key constraints are bandwidth limits and the large capital needed to replicate the network density seen in cities. The outlet contends that macro towers are not being replaced, they are being complemented as orbital assets come online.
MarketBeat Ratings highlights SpaceX planning for Starlink Mobile on an August 2026 earnings call, aiming to beam connectivity directly to unmodified smartphones worldwide. The article also cites SpaceX acquiring about $19.6 billion in mid band spectrum from EchoStar to transition toward owning exclusive bandwidth, and notes AST SpaceMobile deploying BlueBird satellites ahead of a targeted fourth quarter commercial launch with US Mobile.
Overall, the outlet frames the shift as structural for telecommunications infrastructure investment, suggesting investors should look beyond launch hype and focus on capital allocation and network physics when assessing the competitive threat to tower focused REITs such as Crown Castle and American Tower.