By David Shepardson
WASHINGTON, Oct 1 (Reuters) – AT&T, T-Mobile and Verizon have appointed wireless industry veteran Paul Roth as interim chief executive of their new joint venture aimed at expanding satellite-enabled mobile coverage, the companies said on Thursday.
The largest U.S. wireless companies said the venture — first announced in May — seeks to expand coverage in underserved areas across the U.S and end nearly all dead zones without mobile service. The plan also aims to ensure redundant connectivity during natural disasters and improved network performance using so-called “direct to device” satellite technology.
Some analysts also suggest the joint venture could be defensive, citing Elon Musk’s SpaceX.
SpaceX’s ambition to build a full-fledged mobile service rattled investors in the U.S. wireless sector after the company in August outlined plans that could eventually pit Starlink against the three major U.S. 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 wireless carriers.
AT&T, Verizon and T-Mobile have invested hundreds of billions of dollars over three decades to acquire spectrum licenses, build their networks, and attract and retain customers.
FCC Chair Brendan Carr told Reuters earlier this year 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.
Under its partnership with T-Mobile, SpaceX uses Starlink satellites to provide direct-to-cell connectivity for compatible smartphones outside traditional cell coverage.
(Reporting by David Shepardson in Washington and Harshita Mary Varghese in Bengaluru; Editing by Chizu Nomiyama )
Comments