Stop the press: Not only are the big three U.S. wireless carriers agreeing on a rare collaboration, but it’s a project that could actually benefit consumers in the long run. 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 United States, with a specific focus on improving coverage in rural areas and communities underserved by satellites.
The trio of traditionally unfriendly operators said in a joint press release that they intended to pool their “limited spectrum resources to increase capacity, improve customer experience and help satellite providers reach more customers through a unified platform.” They say this approach will “deliver a better and more consistent customer experience across the industry”.
The JV will seek to enable more satellite service providers to compete in a rapidly growing market, and the operators 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.
This seems like an objectively productive move, but there’s very likely a business benefit to all of this as well. On the one hand, this unlikely partnership could be a hedge against SpaceX starting to offer its own MNO if it can get the technology to work reliably enough.
T-Mobile currently has a deal with Starlink and last year made its satellite texting feature free for several months (which is interesting, even if you were with one of the carriers involved in the JV announced today). Earlier this year, Elon Musk’s SpaceX received an application to deploy an additional 7,500 Gen2 Starlink satellites approved by the FCC, bringing its total to 15,000.
SpaceX’s rival, AST SpaceMobile, currently works with AT&T and Verizon. Its technology is proven to work, but there are not yet enough satellites in orbit to properly start the service. A recent satellite launch failed because Jeff Bezos’ Blue Origin didn’t put the payload in a high enough orbit, despite an otherwise smooth launch and AST SpaceMobile confirming it had reached power on its end.
Amazon is also a major 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 far behind Starlink, with a relatively small number of low-orbit satellites and a full launch of the D2D service likely still a few years away.
The JV between AT&T, T-Mobile and Verizon Plan remains subject to final agreements between the parties involved and “satisfaction with customary closing conditions.”