AT&T, T-Mobile and Verizon agree to form joint venture for satellite coverage
AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS) and Verizon (NYSE: VZ) announced an agreement in principle to form a joint venture aimed at reducing wireless dead zones in the United States through satellite-based direct-to-device technology.
The joint venture would pool spectrum resources and collaborate on satellite connectivity to extend mobile service to underserved areas, particularly rural regions where traditional cell networks have limited coverage. The agreement remains subject to negotiating definitive agreements and satisfying customary closing conditions.
The collaboration would allow the three carriers to share satellite capacity and create unified technical specifications for direct-to-device communications. Existing carrier-satellite agreements will remain in place, and the companies can continue independent connectivity efforts.
"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 John Stankey, Chairman and CEO of AT&T.
T-Mobile President and CEO Srini Gopalan noted the company previously launched what it described as the first nationwide satellite-powered direct-to-device network for text and data. "This partnership will also make it easier for satellite operators to deliver a broader range of direct-to-device experiences," Gopalan said.
Verizon CEO Dan Schulman emphasized the infrastructure benefits, stating the partnership "gives customers more options, continues to strengthen America's infrastructure and increases competition for satellite providers."
The joint venture would aim to provide backup connectivity during natural disasters when ground-based networks are disrupted and enable faster deployment of satellite services across providers. The companies stated the collaboration would expand opportunities for rural mobile network operators and other satellite service providers to compete.
The announcement comes as wireless carriers seek to address coverage gaps in remote areas through partnerships with satellite companies and emerging direct-to-device technologies.
