• US telcos will team up to more easily enable the provision of satellite direct-to-device (D2D) services
• The proposed joint venture will see the trio pool spectrum and technical resources to tackle wireless dead zones
• Details of JV still to be finalised and may need the regulatory rubber stamp

The three biggest mobile operators in the United States have unveiled a plan to form a new joint venture (JV), promoting direct-to-device (D2D) satellite communications to tackle not-spots across the country.

In what looks like a promising example of meaningful telco sector collaboration, AT&T, Verizon and T-Mobile US have agreed, in principle, to create a new company that will pool spectrum resources to increase capacity and help satellite providers reach more customers using a unified platform.

According to their joint announcement, the JV remains subject to negotiations. It could also be subject to regulatory approval. But, should a final deal be agreed, the three operators will work together to share IP and terrestrial spectrum to develop industry specifications that, they claim, will provide a more seamless experience for customers and satellite operators.

All three operators have developed D2D service strategies and struck satellite partnerships, with T-Mobile US having already launched its own D2D service, T-Satellite, in partnership with Starlink, as they look to tackle coverage gaps in harder-to-reach rural areas.

“Having launched the first nationwide, satellite-powered direct-to-device network for text and data, we’ve seen firsthand how critical reliable connectivity can be when America needs it most,” stated Srini Gopalan, president and CEO of T-Mobile US. “With the expansion of satellite constellations, soon to be supported by multiple space-based operators, this JV will use expanded capacity and improved performance to deliver the best possible service to customers. Together, we’re aiming to advance a future where America stays connected in more places, with fewer dead zones and greater access to the products and experiences people rely on every day,” he added.

John Stankey, chairman and CEO of AT&T, commented: “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. This collaboration not only makes connectivity easier; it strengthens America’s communications leadership.”

Verizon CEO Dan Schulman said the partnership “gives customers more options, and continues to strengthen America’s infrastructure and increases competition for satellite providers”.

The move comes as the satellite market is heating up. Companies like SpaceX (through Starlink) have put thousands of satellites into low-earth orbit, while the likes of Amazon (through Project Kuiper) and Eutelsat OneWeb try to keep pace with Elon Musk’s company.

The companies claim the proposed JV will benefit customers in several ways, including fewer coverage gaps, reliable connectivity for emergencies, improved network performance and a more consistent experience.

The JV will also benefit the industry, according to the telcos, by expanding access for satellite providers, easing technical integration, and creating a technology-neutral innovation platform that will include “industry-wide device compatibility”.

At least one satellite provider has welcomed the proposed joint venture: AST SpaceMobile already has partnerships with AT&T and Verizon to provide satellite services in remote parts of the US.

Responding to the news, the satellite firm’s CEO Abel Avellan said he was “happy to see how the industry is preparing to enable space-based cellular broadband connectivity to every American”, adding that his company plans to be a “key enabler” of this transformation.

- James Pearce, Editor, TelecomTV