- The JV will pool spectrum resources to help satellite providers reach more customers through a unified platform
- The press release doesn’t identify what spectrum will be used but says there will be common technical specifications
- It appears to be about expanding the pool of satellite providers rather than favoring one over another
AT&T, T-Mobile and Verizon are pooling their spectrum resources and forming a new joint venture to end dead zones in the U.S., including rural areas.
The move comes as the industry increasingly worries about what Elon Musk’s Starlink Mobile might do to shake up the terrestrial mobile space. Musk has said he’s not going to put the U.S. terrestrial carriers out of business at the same time he’s expanding Starlink and buying up more spectrum.
As a first step in the JV, the service providers’ satellite options will expand and direct-to-device (D2D) access will improve for everyone, according to the carriers. The JV aims to provide customers with stronger, more reliable connectivity and greater choice, with fewer coverage gaps and more reliability in emergencies.
“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. By joining with other carriers, we're bringing our combined expertise to accelerate our customers’ access to reliable, and always-on coverage everywhere,” said AT&T Chairman and CEO John Stankey in a statement.
T-Mobile was the first carrier to offer a D2D service through Starlink, but its exclusivity is expected to end, possibly this year. Verizon offers D2D service to Android devices through Skylo, and both AT&T and Verizon are invested in AST SpaceMobile.
But a lot more is happening in the D2D space, to put it mildly. SpaceX/Starlink has a huge headstart while newer entrants are attempting to catch up. Amazon Leo is buying Globalstar, which supplies the connectivity for Apple iPhone devices’ SOS text services. AST SpaceMobile expects to launch 45 more satellites before the end of this year.
Today’s announcement didn’t refer any specific satellite companies by name, but AST SpaceMobile issued a statement applauding the move.
“AST SpaceMobile is happy to see how the industry is preparing to enable space-based cellular broadband connectivity to every American,” said ASP SpaceMobile Chairman and CEO Abel Avellan said in a press release. “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."
Separately, the press release with quotes from the CEOs of all three U.S. wireless carriers states that existing carrier-satellite agreements will remain in place and the JV partners can continue connectivity efforts independently.
They didn’t identify which spectrum will be used in this JV but referred to “common technical specifications” and said a unified approach will provide a more consistent customer experience across the industry.
The JV remains subject to negotiating definitive agreements between the parties and satisfying customary closing conditions.
Threat of SpaceX MVNO
All this is happening as all three CEOs of the Big 3 wireless carriers have said they are not interested in doing an MVNO with SpaceX/Starlink.
The topic came up again on Wednesday at the MoffettNathanson investor conference.
Analyst Craig Moffett asked Verizon CEO Dan Schulman if he would do an MVNO deal with a low Earth orbit (LEO) player.
Schulman’s single word answer: “No.”
Separately, Moffett later asked T-Mobile CFO Peter Osvaldik if there’s a scenario where T-Mobile would give an MVNO agreement to a LEO satellite operator.
Osvaldik referred to T-Mobile President and CEO Srini Gopalan’s previous answers to that, where he’s said he doesn’t see a match there with Starlink because it wouldn’t expand T-Mobile’s total addressable market (TAM).
“Generally, it doesn't seem to fit,” Osvaldik responded.
Moffett gave his best Jim Carrey impression, prompting laughter from the audience: “So you’re saying there’s a chance?”
“That's not what I'm saying at all,” the CFO said. “I'd say the opposite.”