Wells Fargo Analyst: SpaceX Wireless Will Crush Carriers While Tower REITs “Quietly” Profit

Wells Fargo analyst Steven Cahall outlined a compelling outlook on SpaceX's aggressive expansion into wireless communications, noting that its hybrid satellite-and-spectrum architecture poses significant disruption for legacy telecommunications carriers while offering tailwinds to infrastructure providers. Following FCC clearance to absorb 65 MHz of EchoStar's spectrum, SpaceX continues to bolster Starlink, which doubled its subscriber base year-over-year to 12.0 million as of Q2 2026, generating $4.29 billion in connectivity revenue. According to Cahall, SpaceX's entry into wireless as an unconventional fourth player will place substantial pricing and margin pressure on traditional telecom operators like AT&T and Verizon. In contrast, tower REITs such as American Tower and Crown Castle, alongside cable operators providing Wi-Fi offloading, are poised to benefit by leasing essential ground capacity and offload connectivity. SpaceX reported total Q2 revenue of $7.81 billion, adjusted EBITDA of $3.54 billion, and a robust $93.5 billion cash position, positioning it favorably for long-term growth in the wireless ecosystem.