T-Mobile US Inc.‘s (NASDAQ:TMUS) newly launched T-Satellite service, powered by Elon Musk's Starlink, could backfire on the telecom giant once a speculated 12-month exclusivity deal ends, highlights Peter Adderton, the founder of MobileX and Boost Mobile.
Check out the current price of TMUS stock here.
What Happened: In an X post, Adderton called Musk a "genius" for using T-Mobile to onboard SpaceX customers, predicting the company will bypass Mobile Network Operators (MNOs) with a direct service or a mobile virtual network operator, potentially via an EchoStar acquisition.
"This is going to bite @MikeSievert," he quipped, targeting T-Mobile's CEO.
T-Mobile launched T-Satellite on July 23, aiming to eliminate cellular dead zones across 500,000 square miles of the U.S. with over 657 Starlink satellites.
The service, offering SMS, MMS, and short audio clips with a data rollout planned for Oct. 1, attracted 1.8 million beta users since 2024, including AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) customers, following a Super Bowl ad.
Additionally, Musk has touted the service's global connectivity potential, with Apple Inc.'s (NASDAQ:AAPL) iOS 18.3 integration boosting its reach.
However, Tim Farrar, the president of TMF Associates, cautioned in a reply to Adderton that SpaceX’s “12 mo exclusivity hasn’t been mentioned for last year or so.”
Since SpaceX lacks its spectrum, Adderton's prediction is contingent on regulatory approval, such as an EchoStar deal.
Why it Matters: TMUS CEO Mike Sievert celebrated the milestone, noting free access for Go5G Next plan holders and a $15/month fee for others, with non-T-Mobile users now facing $20/month and a call/store sign-up process.
On Wednesday, the company also reported better-than-expected revenue at $21.13 billion, beating the Street's estimate of $20.98 billion and earnings of $2.84 per share, which beat the analyst consensus estimate of $2.68.
When compared to AT&T, T-Mobile continued to be the market share gainer in the telecom industry, adding more customers than AT&T for 23 quarters in a row.
Price Action: TMUS shares rose 0.29% on Wednesday and 5.16% in after-hours. The stock was up 6.56% year-to-date and 32.25% higher over the past year.
Benzinga Edge Stock Rankings show that TMUS had a stronger price trend over the short and long terms but a weaker trend over the medium term. Its momentum ranking was strong, but its value ranking was poor at the 25.83th percentile. The details of other metrics are available here.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
