Verizon CEO Open to Working With Elon Musk's Starlink, But There’s One Deal He Won’t Touch: ‘No Benefit Whatsoever’

On Monday, Verizon Communications Inc. (NYSE:VZ) CEO Dan Schulman sees opportunities to collaborate with satellite providers such as Elon Musk’s Starlink, but says the wireless carrier has no reason to let Space Exploration Technologies Corp. (NASDAQ:SPCX) use its network to compete for mobile customers.

Verizon CEO Sees Potential In Starlink Partnerships

Speaking during Verizon’s third-quarter earnings call, Schulman acknowledged that satellite connectivity could complement traditional wireless services, particularly in remote areas with limited cellular coverage.

"I do think there is a role for satellite for sure in remote areas. It’s a great service for those customers," he said, adding, "And I do think there are ways that we can work together, either directly or through our JV with satellite providers, to provide a complementary service and a differentiated value proposition."

Schulman reiterated that the company has no plans to offer satellite providers access to its network through mobile virtual network operator (MVNO) agreements.

"I will say, and I’ll repeat it again, that there are no backdoors to any of our MVNO agreements and I see absolutely no benefit whatsoever to extending an MVNO deal to any satellite provider," he added.

An MVNO, or mobile virtual network operator, sells wireless services using another carrier’s network rather than relying entirely on its own infrastructure.

SpaceX Could Need Billions to Challenge Verizon

During the call, Schulman said Verizon takes SpaceX’s ambitions seriously and assumes the company will execute its plans successfully.

He argued that competing directly with established wireless carriers would require SpaceX to build a substantial terrestrial network, including 65,000 to 80,000 macro sites, backhaul infrastructure, radio access equipment and significant spectrum resources.

Schulman estimated that such a buildout could take at least four to six years and cost $300 billion to $500 billion over seven to eight years.

He also dismissed the idea that Verizon must offer Starlink network access to prevent rivals from gaining an advantage.

"There is no benefit to Verizon Communications extending an MVNO deal," Schulman said, adding that the company intends to compete aggressively if SpaceX enters the market. "We will punch back hard when that happens," he said.

Stock Falls Despite Earnings Beat and Subscriber Growth

Verizon shares closed down 3.49% at $43.10 on Monday, despite the company reporting its strongest third-quarter wireless subscriber growth in five years, beating earnings expectations and raising its full-year outlook.

The stock gained 0.29% to $43.23 in after-hours trading, according to Benzinga Pro.

Verizon reported adjusted third-quarter earnings of $1.31 per share, topping analysts’ expectations of $1.27.

Revenue totaled $34.31 billion, missing the $34.74 billion consensus estimate as fewer customers upgraded their devices after handset subsidies were cut.

Benzinga Edge ranks Verizon in the 63rd percentile for Momentum and the 52nd percentile for Quality and shows weak price trends across the short, medium and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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