Mobile carriers join forces to boost coverage in dead zones

AT&T Inc., T-Mobile US Inc. and Verizon Communications Inc. announced a rare joint venture Thursday that aims to make satellite capabilities more widely available to mobile phone customers.

The three dominant U.S. carriers agreed to pool their satellite partnerships and spectrum resources to better integrate supplementary service into terrestrial mobile networks. The initiative will ultimately give customers wireless access when they’re off the grid, or in so-called dead zones, where cell networks have limited or no service.

The carriers said they have reached the agreement in principle and must still work out operational details, according to a statement.

T-Mobile has already teamed up with SpaceX’s Starlink satellite service to fill gaps in its ground-based network. AT&T and Verizon have a similar agreement with AST SpaceMobile Inc., and Verizon is also working with Amazon Leo and Skylo to make the capabilities commercially available.

The individual commercial agreements will remain in place, and each carrier will continue to set their own pricing, packaging and service features. But the three-way partnership will make it easier for satellite providers to develop direct-to-device technology as an industry, instead of each operator having to develop solutions for each individual carrier. It will also carve a path for new satellite providers to enter the market. The companies will be “creating industry specifications to enable a more seamless experience for customers and satellite operators,” according to the statement.

Direct-to-device technology, which allows satellites rather than cell towers to connect directly to consumer devices, is still a burgeoning industry. Starlink is the farthest ahead on its direct-to-device network deployment, and already provides emergency communications and WhatsApp voice calls, plus some messaging and app data to T-Mobile customers. Amazon.com Inc. agreed to acquire satellite operator Globalstar Inc. in a roughly $11.6 billion deal last month, saying it plans to enter the direct-to-device market in 2028. AST, which has gained an enthusiastic following of retail investors, is racing to put 45 more satellites into orbit this year and begin commercial service.

AST is “happy to see how the industry is preparing to enable space-based cellular broadband connectivity to every American,” Abel Avellan, AST’s chief executive officer, said in a separate statement.