Jim Cramer is pouring cold water on AT&T Inc.‘s (NYSE:T) massive 5G network expansion, warning investors that emerging satellite networks from tech billionaires will easily outpace traditional telecom companies in rural markets.
The Threat From the Sky
During a recent episode of CNBC’s “Mad Money,” a caller pitched AT&T as a potential long-term play, citing the telecom giant‘s move to purchase roughly $23 billion worth of EchoStar’s nationwide spectrum.
The primary goal of the acquisition is to bridge coverage gaps, bolster the 5G network, and lock in rural customers. However, Cramer was quick to reject the stock entirely.
“I don’t want to be in AT&T,” Cramer stated. He pointed directly to the rapidly expanding satellite internet market, which is currently being pioneered by Elon Musk‘s SpaceX and Jeff Bezos‘s Amazon.com Inc. (NASDAQ:AMZN).
“I also am very concerned about rural. I’m very worried about Starlink,” Cramer explained. He emphasized that both Starlink and Amazon’s Low Earth Orbit (LEO) satellite internet initiatives are going to be “considerable competitors to the rural part of …
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