Stop the presses: not only are the big three US wireless carriers agreeing to a rare team-up, but it’s on something that could really benefit consumers in the long-term. AT&T, T-Mobile, and Verizon have announced a new Joint Venture that will see them work together to eliminate wireless dead zones in the US, with a specific focus on boosting coverage in rural areas and underserved communities with satellites.
The trio of traditionally not-so friendly carriers said in a joint press release that they intend to pool their “limited spectrum resources to increase capacity, improve the customer experience, and help satellite providers reach more customers through a unified platform.” This approach, they say, will “provide a better and more consistent customer experience across the industry.”
The JV will seek to enable more satellite service providers to compete in the fast-growing market, and the carriers say they will work with mobile network operators in rural areas where coverage is often limited, simplifying the process of integrating direct-to-device (D2D) technologies.
It sounds like an objectively productive initiative, but there is very likely a business benefit to all this too. For one, the unlikely partnership could be a hedge against SpaceX starting to offer its own MNO if it can get the tech working reliably enough.
T-Mobile currently has a deal with Starlink, and last year made its satellite texting feature free for a number of months (interestingly, even if you were with one of the carriers involved in the JV announced today). Earlier this year, Elon Musk’s SpaceX had a request to deploy 7,500 more Gen2 Starlink satellites approved by the FCC, bringing its total to 15,000.
SpaceX rival AST SpaceMobile is currently working with AT&T and Verizon. It’s proven that its tech works, but doesn’t have enough satellites in orbit to properly start service yet. A recent satellite launch failed because Jeff Bezos’ Blue Origin didn’t put the payload in high-enough orbit, despite an otherwise smooth launch and AST SpaceMobile confirming that it had hit power on its end.
Amazon is also very much a player in this space, and recently merged with Globalstar, the satellite internet company employed (and partially owned) by Apple to provide emergency connectivity to supported iPhones and Watches. Amazon is some way behind Starlink, with a relatively small number of satellites in low orbit and a full D2D service launch likely still some years away.
The JV between AT&T, T-Mobile, and Verizon Plan remains subject to final agreements between the involved parties and “satisfying customary closing conditions.”
