AT&T, T-Mobile and Verizon formalise satellite joint venture, name Paul Roth interim CEO

AT&T, T-Mobile and Verizon have formalised their joint venture for satellite-enabled mobile coverage and appointed wireless industry veteran Paul Roth as interim chief executive, the companies said on Thursday.

The venture, first announced in May, seeks to expand coverage in underserved areas across the United States and end nearly all mobile dead zones, the companies said. It aims to provide redundant connectivity during natural disasters and improve network performance using direct-to-device satellite technology. WebProNews reported that the formal agreement on 1 October turned the May agreement in principle into concrete action, while Engadget reported the formal launch on 2 October.

The venture will pool spectrum resources from all three companies and create common technical standards, giving customers easier access to direct-to-device satellite services regardless of carrier. A board with representatives from each carrier will oversee operations. No name for the venture has been announced and ownership details and financial terms remain undisclosed. Existing satellite agreements stay intact: T-Mobile continues its Starlink partnership for satellite texting, while AT&T and Verizon continue working with AST SpaceMobile on future broadband-from-space capabilities.

Some analysts suggest the joint venture is partly defensive, citing Elon Musk’s SpaceX, Reuters reported. SpaceX outlined plans in August that could eventually pit Starlink against the three major US telecoms. SpaceX acquired 65 megahertz of wireless spectrum from EchoStar for $19.6 billion through two deals announced last year, giving Starlink airwaves to expand into mobile services. SpaceX President Gwynne Shotwell said in August the company will build the infrastructure needed to make Starlink “a true mobile service” and expects to win “quite a few” customers from the big three carriers.

Federal Communications Commission chair Brendan Carr told Reuters earlier this year that Starlink will have the ability, on its own or in partnership with traditional carriers, to address the dead zones. The FCC on Wednesday moved to release more spectrum to boost in-home satellite broadband. “Making next-gen satellite broadband faster and more reliable will not only benefit current subscribers, but also enhance competition for all consumers — putting downward pressure on prices in the home-internet marketplace,” Carr said.