SpaceX’s plan to roll out a Starlink mobile service in the US puts fresh pressure on established telecom stocks, as a new competitor steps directly into the multibillion dollar phone network market. For investors, the story is less about rockets and more about how capital heavy network buildouts, spectrum needs, and changing consumer options could reshape parts of the US telecommunications sector. This article breaks down 3 stocks from our sector screener that are closely exposed to this news, to help you evaluate whether each one looks more like an opportunity to consider or a risk to handle with extra care.

Bandwidth (BAND)

Overview: Bandwidth is a cloud communications company that lets enterprises plug voice, messaging, emergency calling and AI-powered customer interactions directly into their apps and devices through software APIs and its own underlying network.

Operations: Bandwidth generates about US$788.4 million from internet telephone services, with around US$683.8 million coming from the United States and US$104.6 million from international markets.

Market Cap: US$1.67b

Investors considering how Starlink’s mobile push could reshape telecom may want to note how Bandwidth fits into the plumbing of modern communications. The company is connected to enterprise AI trends through its Maestro platform, a new Build toolkit for AI agents, and partnerships such as Salesforce’s Agentforce. Its CPaaS offering also directly competes for traffic that might otherwise sit with traditional carriers. At the same time, Bandwidth is still emerging from a period of losses, has issued US$275 million of convertible notes that may dilute shareholders, and carries funding risk from external borrowing. The combination of raised revenue guidance, recent profitability and insider selling creates a complex story that investors may want to examine closely.

Bandwidth’s shift from losses toward profitability, along with its AI focused platforms, makes the next chapter easy to underestimate, but the real story sits in the detailed 2 key rewards and 2 important warning signs (1 is major!)

Liberty Latin America (LILA)

Overview: Liberty Latin America is a telecommunications group that provides fixed and mobile phone, broadband, TV, and enterprise connectivity services across Puerto Rico, Panama, Costa Rica, Jamaica, and a wide range of Caribbean and Latin American markets, supported by its own subsea and terrestrial fiber network.

Operations: Liberty Latin America generates about US$4.44b in revenue, led by Liberty Caribbean at US$1.45b, Liberty Puerto Rico at US$1.20b, Liberty Costa Rica at US$632.1m, Liberty Networks at US$481.8m, C&W Panama at US$782m, and smaller corporate and intersegment items.

Market Cap: US$1.32b

Liberty Latin America sits at an interesting crossroads as Starlink pushes deeper into mobile, because the company already works with Starlink on direct to cell services and operates across regions where traditional coverage can be patchy. On one hand, you have a telecom group that serves high demand markets like Puerto Rico and Costa Rica, is rolling out new products with Starlink, and has lined up a US$500m special dividend and buybacks, all while trading on a low P/S ratio around 0.3x. On the other hand, you are dealing with heavy debt, ongoing losses, and highly competitive mobile markets. The real question is whether the combination of new satellite enabled services, restructuring, and capital returns justifies accepting those funding and earnings risks.

Liberty Latin America’s mix of satellite partnerships, fiber assets and a low P/S ratio around 0.3x could be masking a very different story, and the full 3 key rewards and 1 important warning sign might reveal the twist investors are missing

Globalstar (GSAT)

Overview: Globalstar is a satellite communications company that connects mobiles, sensors and emergency devices in remote or hard to reach areas, supplying voice, data and Internet of Things services for sectors such as government, oil and gas, transport and emergency response.

Operations: Globalstar generates about US$283.0 million from its Mobile Satellite Services business.

Market Cap: US$10.32b

Globalstar sits in the center of the Starlink mobile story because it already provides satellite and terrestrial wireless services that support direct to device connectivity. It is investing in new satellites with SpaceX launches and is working on long term government and IoT contracts that rely on its spectrum. At the same time, Globalstar is loss making, uses higher risk external funding, and trades on a very rich P/S multiple, with recent insider selling that some investors may see as a yellow flag. The proposed US$10.7b Amazon acquisition and the push to monetise spectrum rights mean there is more going on beneath the surface than the headline satellite narrative suggests.

Globalstar’s rich P/S multiple and loss making profile suggest investors are only seeing part of the picture, and the full 2 key rewards and 1 important warning sign could change how you think about the Amazon deal and spectrum story

The three telecom stocks in this article are just a starting point, and the full US Telecommunications Sector screen on Simply Wall St highlights 5 more companies with equally compelling narratives inside the US Telecommunications Sector screener. Use the Simply Wall St platform to identify and analyze the specific catalysts, capital structures and business models that matter to you so you can focus on the highest conviction opportunities in this sector.

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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.