Verizon's CEO Has a Warning for SpaceX and Its Mobile Plans
SpaceX may be looking to dominate the mobile market in the future, but it won't happen easily.
Verizon CEO Dan Schulman has issued a warning to SpaceX about the potential impact of its Starlink mobile plans on the telecommunications industry. Despite Verizon posting strong third-quarter earnings, investors are growing concerned about the competition SpaceX poses. Schulman revealed that SpaceX will likely require a substantial terrestrial network to truly challenge Verizon, which could take years and cost billions of dollars.
He also expressed confidence that Verizon would fiercely compete if Starlink enters the market. Despite the risk, Verizon's business is thriving, with postpaid phone net adds reaching their highest level in five years and quarterly net account growth hitting a decade-high. The stock is trading at a bargain price with an impressive 6.3% yield, making it an attractive option for investors seeking both high returns and low risk.
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