SpaceX’s push into terrestrial mobile services could weigh on valuations of Thai telecom stocks Advanced Info Service PCL (SET: ADVANC) and True Corporation PCL (SET: TRUE), although their near-term fundamentals remain unaffected, according to Yuanta Securities.
SpaceX has announced the purchase of 800MHz spectrum from Grain Management to expand Starlink Mobile into the terrestrial market. The transaction remains subject to approval from the U.S. Federal Communications Commission (FCC).
Yuanta said the move has significant implications for the telecom industry. Satellite mobile services face limitations in indoor coverage compared with mobile operators’ networks, meaning access to terrestrial spectrum could strengthen Starlink Mobile’s competitiveness over the long term.
Investors reacted negatively to the announcement, with shares of AT&T, T-Mobile and Verizon falling around 6 – 7% in after-hours trading. The declines reflected concerns that a new entrant could intensify competition and put pressure on telecom valuations.
Yuanta does not expect the development to affect ADVANC’s or TRUE’s fundamentals in the short term, as Starlink must secure the relevant approvals before offering services in Thailand. These include landing rights for low Earth orbit (LEO) satellite services.
Any expansion into mobile services using terrestrial spectrum to compete with domestic operators would also need to comply with Thailand’s licensing and spectrum allocation framework. Alternatively, Starlink would need to participate in spectrum auctions held by the National Broadcasting and Telecommunications Commission (NBTC).
Such auctions are infrequent, representing a significant barrier to direct competition, Yuanta noted.
While the earnings impact on Thai operators remains unclear, Yuanta cautioned that a decline in overseas telecom valuations driven by concerns over Starlink Mobile could also pressure ADVANC’s and TRUE’s valuation multiples through broader sector sentiment.
The brokerage therefore sees limited near-term risk to earnings forecasts. Over the medium term, however, investors should monitor valuation risks and regulatory developments that could pave the way for Starlink to expand its services in Thailand.
