Gilat Wins Over $10 Million in Additional SkyEdge IV Orders

Elon Musk has announced that Starlink's satellite internet service rates in India will be set at an affordable level, opening a direct challenge to Mukesh Ambani's Reliance Jio, ahead of Jio Platforms, the parent company of Jio's telecom business, raising funds through an initial public offering on the Indian stock market. The offering targets a valuation of as much as 106 billion US dollars, making it the largest share sale in the history of the Indian stock market. Meanwhile, the satellite broadband businesses of both Starlink and Jio are still awaiting final security clearance from Indian authorities before they can begin commercial service. Musk has not disclosed specific pricing. India is one of the markets with the lowest mobile data rates in the world, averaging about 8 cents per gigabyte. Musk said via the X platform on Saturday, October 10, that if Starlink prices its service too high in India, no one will use it, so pricing must be set at a level consumers can afford. Musk also posted attacks on the Indian government and on Ambani, accusing the government of deliberately delaying approval of Starlink's licence in order to protect Jio's market share, and mockingly calling Ambani the prime minister of Ambani. The Indian government has denied allegations of discrimination, insisting that the review process is transparent and fair. Currently, three applicants have sought licences to provide satellite communications services, including Starlink and Jio, and all of them are awaiting the same final national security approval.

U.S. space and artificial intelligence company SpaceX announced it will acquire licenses for the spectrum bands used for mobile phones. The company, which operates the satellite communications network service Starlink, stressed that it "will become the first network operator to deploy both satellite and ground-based networks." The acquisition it disclosed covers radio waves in the 800-megahertz band, which travel long distances and are hard to block with buildings or walls, part of a spectrum range known in Japan as the "platinum band." U.S. financial giant Morgan Stanley called the announcement a major step toward building a mobile communications network, and said that while the acquisition price was not disclosed, it "would not be surprised if it approached 8 billion dollars, or roughly 1.3 trillion yen." In the U.S. stock market on the 9th, shares of the three major U.S. telecom carriers plunged, while shares of tower companies that handle base station construction and other work were bought. Still, Morgan Stanley analyzed that the spectrum band is insufficient for expanding service to densely populated areas and that infrastructure development will also be necessary, and it believes "there is still a long road ahead to compete head-on with major telecom carriers."

Yuanta Securities (Thailand) Company Limited stated that SpaceX has announced the acquisition of 800 MHz spectrum from Grain Management to expand its Starlink Mobile service into the terrestrial market, with the transaction still pending approval from the US Federal Communications Commission, or FCC. This move carries significance for the telecommunications industry, because Satellite Mobile services still have limitations in providing indoor coverage compared with the networks of mobile phone operators. Access to terrestrial spectrum could therefore help enhance Starlink Mobile's competitiveness in the long term. The market reacted negatively to the news, with shares of AT&T, T-Mobile and Verizon falling roughly 6–7% in after-hours trading, reflecting concerns that the entry of a new player could increase competitive pressure and affect the valuation levels of the telecommunications business. As for the impact on Thailand, Yuanta Securities assesses that in the short term it remains limited and does not yet affect the fundamentals of Advanced Info Service Public Company Limited, or ADVANC, and True Corporation Public Company Limited, or TRUE, because Starlink must still go through the relevant licensing procedures before it can provide services in Thailand, particularly obtaining Landing Rights for low Earth orbit, or LEO, satellite services. And if Starlink wants to expand its services into the Mobile business to compete directly with domestic operators through the use of terrestrial spectrum, it would still need to consider Thailand's licensing and spectrum allocation framework, or may have to join spectrum auctions opened by the National Broadcasting and Telecommunications Commission, which are not held frequently and represent a major obstacle to entering direct competition in the Thai market. However, Yuanta Securities views that the risk worth monitoring in the medium term lies in share valuation levels, or multiples, rather than the direct impact on operating results. Although at present the impact on the profits of Thai telecommunications operators is not yet clear, if overseas markets lower the valuation of telecommunications stocks out of concern over competition from Starlink Mobile, there is a chance that the multiples of ADVANC and TRUE will also be pressured in line with the group's sentiment. Therefore, Yuanta Securities assesses that the short-term risk to the earnings forecasts of ADVANC and TRUE remains limited, while in the medium term the valuation risk should be monitored, along with regulatory developments that could pave the way for Starlink to expand its services into the Thai market going forward.