SpaceX will disrupt the $1.6 trillion U.S. communications industry, Oppenheimer says.

June 3 (Reuters) - ⁠SpaceX will disrupt the $1.6 trillion U.S. communications industry as ⁠the Elon Musk-led company's satellite broadband unit Starlink expands, ‌Oppenheimer said in a note on Wednesday, adding that legacy broadband providers like AT&T may be most at risk. The brokerage raised its estimate for 2035 space revenue to $800 billion from $500 billion earlier, ahead ⁠of the company's highly ⁠anticipated IPO this month. • The expansion of Starlink is expected to ⁠further ‌pressure cable firms, which are already losing subscribers. • Oppenheimer said companies such as AT&T, Verizon Communications and T-Mobile ⁠could see faster declines in subscribers and revenue going forward. • The ‌brokerage expectsStarlink to "entrench itself in many critical applications, reducing churn ⁠and increasing pricing power." • Oppenheimer raised its 2030 estimates for U.S. broadband subscribers to 15 million from 10 million earlier. • SpaceX's rise could also tap ⁠into the half-a-trillion-dollar handset market as the company aims to replace smartphones, Oppenheimer said. • "Should SpaceX execute on its mission...it will be the modern-day East India Company of space, controlling ⁠routes, infrastructure, and commerce of an entire frontier and giving it a quasi-sovereign reach, far beyond that of any ordinary corporation," Oppenheimer said. • The company is set to debut on the Nasdaq on June 12 and is aiming ⁠to reach a $1.75 trillion valuation in the IPO, Reuters has reported. • SpaceX's valuation is grounded in Starlink, which ‌has over 10 million subscribers, and a launch business that analysts and investors say has transformed access to orbit. (Reporting by Kanchana Chakravarty in Bengaluru)

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