AT&T, T-Mobile & Verizon Form Direct-to-Device Satellite Joint Venture
The companies announced that they are teaming up to expand American wireless leadership, by boosting coverage and connectivity as a means to end dead zones.
(The United States of America) Major carriers AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS) and Verizon (NYSE: VZ) announced today (May 14) that they are teaming up on a new joint venture that seeks to boost coverage and connectivity for underserved communities in remote regions throughout the United States via a variety of efforts, including enhanced direct-to-device satellite capacity.
Image courtesy of Getty Images via Aviation Week.
The partnership was announced today as an “agreement in principle;” if finalized, the three companies will pool limited spectrum resources to increase capacity, improve customer experiences and help satellite providers reach more customers through a unified platform, according to today’s press release from AT&T.
“Through combined investment by the three JV partners, provider options will expand, and, as a first step, D2D access will improve,” reads today’s press release. “This will enhance competition as consumer choices grow in satellite service.”
A PC Magazine article pointed out that “the deal is a bit surprising; T-Mobile has already partnered with SpaceX to offer Starlink Mobile to customers since last year, while AT&T and Verizon have been investing in rival AST SpaceMobile, which aims to launch services by year’s end.”
The deal announcement indicates that the three big carriers want many satellite-to-phone services rather than just one or two, and ample alternatives to SpaceX’s developing Starlink Mobile.
“Our goal is to make staying connected simple, no matter where you are — on a rural highway, in a national park, on a boat, or during an emergency,” ,” said AT&T Chairman and CEO John Stankey.
“By joining with other carriers, we’re bringing our combined expertise to accelerate our customers’ access to reliable, and always-on coverage everywhere. This collaboration not only makes connectivity easier; it strengthens America’s communications leadership.”
Space-based cellular broadband provider AST SpaceMobile, Inc. (NASDAQ: ASTS) issued a statement applauding the deal.
“AST SpaceMobile is happy to see how the industry is preparing to enable space-based cellular broadband connectivity to every American,” said Abel Avellan, AST SpaceMobile’s Chairman and Chief Executive Officer. “We plan to be a key enabler of this transformation as we continue to grow our global network in low Earth orbit and expand available spectrum to our network."
The other major player in satellite-to-phone services is Amazon (NASDAQ: AMZN), which is acquiring Globalstar (NASDAQ: GSAT), the satellite service provider for iPhones.
Per PC Magazine, FCC Chair Brendan Carr said this month that he also wants “at least three facilities-based providers” in the satellite-to-phone market.
Skylo, Verizon’s partner on satellite services, also commented on the JV, according to PC Magazine, saying: “The future of direct-to-device will not be won by space infrastructure alone. It will be won by making satellite connectivity work in a carrier-grade, standards-based and interoperable way across devices, networks and geographies." Skylo has been using satellites from providers including Viasat, Ligado Networks, and EchoStar to power its own satellite-to-phone service for texting.
