Does AT&T’s Satellite Beta With AST SpaceMobile Redefine Its Network Expansion Story For T?

• In early 2026, AT&T moved to expand its reach by preparing a limited beta of satellite-based cellular service, using AST SpaceMobile’s newly launched satellite to extend coverage into remote areas and respond to rising competition and customer churn.
• This push into satellite connectivity signals a potential shift in how AT&T complements its terrestrial 5G and fiber networks, especially for hard-to-serve geographies where traditional infrastructure is costly or impractical.
• Next, we’ll examine how AT&T’s satellite-based cellular beta could reshape its investment narrative around network expansion and competitiveness.

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AT&T Investment Narrative Recap

To own AT&T, you generally need to believe its investments in 5G, fiber, and new connectivity options can offset competitive pressure, customer churn, and legacy wireline declines. The satellite-based cellular beta with AST SpaceMobile directly targets coverage gaps that contribute to churn, making it relevant to the near term catalyst of stabilizing Mobility performance. Its financial impact is unclear for now, but it sits against the key risk of rising competition and potentially pressured margins.

Among recent updates, the FCC approval of AT&T’s US$1.02 billion spectrum purchase from UScellular matters most here, because it reinforces the core network story behind both terrestrial 5G and satellite partnerships. Taken together, added spectrum and experimental satellite coverage show AT&T leaning into broader coverage and capacity as it tries to protect wireless revenue, even as legacy Business Wireline and high capital needs continue to weigh on the overall risk profile.

But against this push into wider coverage, investors should be aware that the real tension may be around how rising competitive intensity interacts with...

Read the full narrative on AT&T (it's free!)

AT&T's narrative projects $130.6 billion revenue and $17.0 billion earnings by 2028. This requires 1.7% yearly revenue growth and about a $4.3 billion earnings increase from $12.7 billion today.

Uncover how AT&T's forecasts yield a $30.99 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Before this satellite news, the most optimistic analysts were assuming AT&T could grow revenue to about US$130.2 billion and earnings to roughly US$17.6 billion, largely on fiber and 5G gains, while the alternate view you just read highlights how higher costs and regulatory friction around shutting down legacy networks could cut into those benefits; this new satellite move could strengthen either case, so it is worth weighing both narratives side by side as you form your own view.

Explore 7 other fair value estimates on AT&T - why the stock might be worth over 2x more than the current price!

Build Your Own AT&T Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AT&T research is our analysis highlighting 4 key rewards and 4 important warning signs that could impact your investment decision.
• Our free AT&T research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AT&T's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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