Starlink's direct-to-cell mobile service has become a major topic following a significant new deal. The PBD podcast discussed how Elon Musk aims to become a phone company, not just eliminate dead zones, which caused considerable alarm among existing providers.
**Key Developments and Market Reaction:**
* **Stock Drops:** Following the announcement, Verizon's stock dropped 7.3%, AT&T's fell 7.8%, and T-Mobile's decreased by 7%.
* **Spectrum Acquisitions:**
* SpaceX agreed to buy approximately $8 billion worth of nationwide 800 megahertz low-band spectrum from Grain Management, providing up to 14 megahertz of paired spectrum.
* This is in addition to prior spectrum acquisitions, including roughly $19.6 billion tied to EchoStar spectrum purchases.
* SpaceX also has FCC approval for its 15,000 Stallion Gen 2 Starlink mobile constellation.
* **Service Focus:** The initial focus is on service, not a proprietary phone, aiming to eliminate dead zones experienced with current carriers. The podcast highlights current excellent Starlink internet service on jets.
**Competitors' Responses:**
* **AT&T CEO (September 30th, 2026):** Stated that "satellite at its best, if everything happens right over the next 10 years, is still not going to beat fiber." Regarding SpaceX's plan to install cellular base stations with Starlink dishes, he claimed it would be as costly as building a macro network, citing issues like needing permission to radiate cellular signals from homes. He concluded by saying AT&T is the disruptor and called Musk's phone strategy "not viable."
* **T-Mobile CTO (recently):** Commented, "spectrum alone doesn't make a network," emphasizing the difference between owning spectrum and delivering a great mobile experience.
**The "Advanced Terrestrial Deployment" Impact:**
* The revelation that Starlink direct-to-cell will be "coupled to an advanced terrestrial deployment" (earth-based network) alongside its satellite service significantly impacted the stock market.
* Grain's legal advisor noted this means service will reach customers from both space and earth, allowing Starlink to fill in gaps like dead zones inside buildings. This dual approach is what particularly worried competitors. The 7% stock drop reflected a loss in future business speculation.
* Elon Musk was likened to a combination of Thomas Edison and EF Hutton ("when EF Hutton talks, people listen").
**Audience Reaction and Future Predictions:**
* A call-out to the podcast audience for comments on dead zones showed overwhelmingly positive sentiment towards Starlink, with many expressing a strong desire to switch immediately, citing dissatisfaction with current providers, support for Elon Musk, and a desire to break up monopolies.
* The speaker predicted that Starlink direct-to-cell monthly users would rapidly overtake and significantly outnumber Starlink home broadband users due to its cost-competitiveness, better coverage, and the ease of switching mobile providers.
**Recent International Updates (since the segment was recorded):**
* **Brazil:** Starlink mobile received regulatory approval in Brazil in the 2GHz spectrum for direct-to-phone service.
* **Panama:** After an earthquake, a local cell service provider switched its network to offer free Starlink mobile texting nationwide.
* **South Asia:** Direct-to-cell service has launched in the region.
* **Venezuela:** Starlink has obtained a national license.
The speaker concluded by conducting his own poll, asking viewers if they would switch to Starlink mobile if it becomes available in their area.