SpaceX’s IPO was a gargantuan event by any measure: US$75 billion proceeds raised, over US$2 trillion enterprise value, and an almost US$29 trillion total addressable market to feast on.  Few other companies can rival its industrial span and potential seismic impact on consumers and competitors.  SpaceX’s valuation is driven by its sci-fi AI segment replete with space-based data centres and moon bases.  However, its more immediate impact maybe felt in the more down to earth world of telecom.

SpaceX’s cash cow is the Connectivity segment where it operates a constellation of 9,600 low earth orbit (“LEO”) satellites under the Starlink brand.  These provide broadband and in-fill mobile voice & data services to consumers in predominantly remote areas where terrestrial broadband and mobile networks are patchy or absent.  In addition, Starlink offers broadband services to ships and aircraft where terrestrial networks are entirely absent.  In 2025, the Connectivity unit generated US$3 billion free cash flow (EBITDA less capex) from almost 9 million broadband and over 6 million mobile global subscribers and from its corporate contracts with airlines and ship operators.  

By way of comparison, the 5 largest US telecom & cable players generated almost US$111bn free cash flow (EBITDA less capex) and had approximately 95m broadband subscribers and 275m mobile postpaid subscribers.  Looking at those stats you would be forgiven for thinking that US telecom & cable operators don’t have all that much to worry about.  The problem is that this is just the beginning for controlling shareholder and CEO Musk who has proved himself a visionary with Olympian levels of ambition and matching access to capital.

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