Three of the largest wireless carriers in the United States are joining forces to take on Starlink in rural areas, and SpaceX’s president says she welcomes the fight.
Verizon, AT&T, and T-Mobile agreed in principle Thursday to form a joint venture aimed at eliminating coverage gaps and “dead zones” in remote parts of the country using satellite-based technology. The partnership is unusual given that the three companies have long been fierce competitors.
SpaceX President Gwynne Shotwell responded to the news on social media, comparing Starlink’s position to a classic underdog story. “I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again,” she wrote, adding that she is “bettin’ on David.”
The alliance is widely seen as a response to Starlink’s rapid expansion in the satellite internet and mobile markets. SpaceX has already launched thousands of satellites and is currently testing direct-to-cell service (partnering with T-Mobile) that would let standard smartphones connect to satellites without additional hardware.
“AT&T, T-Mobile, and Verizon have an agreement in principle to form a new JV [joint venture] which aims to help end wireless dead zones in the U.S., including in rural areas, by pooling limited spectrum resources to increase capacity, improve the customer experience, and help satellite providers reach more customers through a unified platform. The JV remains subject to negotiating definitive agreements between the parties and satisfying customary closing conditions,” explained the wireless carriers.
“Collectively, satellite services function as supplementary components to the core wireless services customers depend on. By collaborating on this JV, the partners will be able to enhance convenience for their customers, enable competition and foster innovation and growth within the industry,” said the press release.
Industry analysts say the partnership reflects growing concern among traditional telecom companies about falling behind SpaceX’s pace of innovation. By pooling their resources and infrastructure, the three carriers hope to offer a competitive alternative for rural customers and emergency services.
The joint venture is still in its early stages, with no timeline announced for deployment. This all sounds fine and dandy on paper, but these carriers will likely have to partner with an existing Starlink rival to get started, or start sending satellites into space themselves, which is a massive undertaking.
Want to see more of our stories on Google?
P.S. — Buying a new Tesla? Click here to save $1,000 USD, while supporting independent news.
Help support us by shopping on Amazon here.
Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent media!
