DATA & FIGURES
$3 billion in free cash flow, 9 million broadband subscribers, 6 million mobile subscribers, 10,000 next-generation satellites, $75 billion IPO proceeds, $2 trillion enterprise value, $29 trillion total addressable market
THE SCENARIO
The US telecom and cable industry is facing a significant disruption from SpaceX's Starlink, which is poised to change the landscape of the market. The traditional operators, such as Comcast and Charter, are already feeling the pressure, and their equity values are falling. The industry is likely to see a significant shift in the coming years, with Starlink's low-earth orbit satellites providing faster and more reliable services to consumers.
DIRECT QUOTE
"it was not out of the question" — Elon Musk, CEO, SpaceX
BBN INSIGHT
The Positive Side: SpaceX's Starlink is bringing faster and more reliable internet services to remote areas, which will have a positive impact on the economy and society. The Negative Side: The disruption caused by Starlink will lead to significant job losses and revenue decline for traditional telecom and cable operators, which will have a negative impact on the industry and the economy. The impact on consumers will be significant, as they will have more choices and better services, but the industry will have to adapt to the new reality.
MARKET REACTION
Comcast equity has fallen by 30%, Charter equity has fallen by 70%, Verizon market capitalization is less than 10% of SpaceX's