Investment banks are downgrading Telstra and a broader suite of ASX-listed telecommunications companies, driven by concerns that SpaceX’s Starlink service will erode market share in the highly concentrated Australian industry.
The shift in analyst sentiment marks a significant change in outlook for the sector, as brokers increasingly view satellite broadband as a material competitive threat to traditional infrastructure providers.
The downgrades come from major brokers Morgan Stanley and Jarden, who have turned bearish on the stocks.
Their analysis suggests that Elon Musk’s SpaceX is poised to lure customers away from incumbent telcos, challenging the duopoly dynamics that have long protected industry margins.
This represents a fresh layer of risk for investors who have previously viewed the sector as a defensive hold.
The timing of the negative research is particularly sensitive, arriving shortly after a major network disruption affected Telstra’s operations.