T-Mobile Takes Coverage Above and Beyond With SpaceX

Rhea-AI Summary

T-Mobile (TMUS) and SpaceX announced a partnership to provide universal cell phone coverage through Starlink satellites, aiming to connect smartphones on T-Mobile’s network to these satellites. The service intends to eliminate mobile dead zones in remote areas of the U.S. and offer text coverage practically everywhere, including in Hawaii and parts of Alaska. The new technology requires no additional equipment and is set to enter beta testing by next year. This move is part of T-Mobile’s broader strategy to enhance connectivity and invite global carriers for reciprocal roaming collaboration.

Positive

• Partnership with SpaceX aims to provide universal cell coverage, eliminating dead zones.
• Service will use existing smartphones on T-Mobile's network, requiring no extra equipment.
• Planned text coverage across the continental U.S., Hawaii, Alaska, and Puerto Rico.

Negative

• Dependence on future satellite launches and network buildout could delay service rollout.
• Uncertainties related to agreements for network development may impact future results.

Companies share their vision to provide truly universal coverage, pairing SpaceX’s breakthrough satellite constellation with T-Mobile’s industry-leading wireless network

New service aims to connect vast majority of smartphones already on T-Mobile’s network to Starlink satellites

Companies issue invitation to world’s carriers to expand globally with reciprocal roaming

STARBASE, Texas--(BUSINESS WIRE)-- In a live event today, T-Mobile (NASDAQ: TMUS) CEO and President Mike Sievert and SpaceX Chief Engineer Elon Musk announced Coverage Above and Beyond: a breakthrough new plan to bring cell phone connectivity everywhere. Leveraging Starlink, SpaceX’s constellation of satellites in low Earth orbit, and T-Mobile’s industry-leading wireless network, the Un-carrier plans to provide near complete coverage in most places in the U.S. – even in many of the most remote locations previously unreachable by traditional cell signals.

T-Mobile Takes Coverage Above and Beyond With SpaceX. Companies share their vision to provide truly universal coverage, pairing SpaceX’s breakthrough satellite constellation with T-Mobile’s industry-leading wireless network. New service aims to connect vast majority of smartphones already on T-Mobile’s network to Starlink satellites. (Graphic: T-Mobile)

Today, despite powerful LTE and 5G wireless networks, well over half a million square miles of the U.S. in addition to vast stretches of ocean are untouched by cell signals … from ANY provider. And as anyone who has ever encountered a mobile dead zone knows, the wireless industry has struggled to cover these areas with traditional terrestrial cellular technology, most often due to land-use restrictions (e.g. National Parks), terrain limits (e.g. mountains, deserts and other topographical realities) and America’s sheer vastness. In those areas, people are either disconnected or pay exorbitant rates to lug around a sat phone. SpaceX and T-Mobile share a vision where these uncovered areas are a relic of the past, and today, the companies are taking a first step to make that vision a reality.

From the middle of Death Valley to the Great Smokey Mountains or even that persistent neighborhood dead zone, T-Mobile and SpaceX have a vision to give customers a crucial additional layer of connectivity in areas previously unreachable by cell signals from any provider. And the service aims to work with the phone already in your pocket. The vast majority of smartphones already on T-Mobile’s network will be compatible with the new service using the device’s existing radio. No extra equipment to buy. It just works.

“We’ve always thought differently about what it means to keep customers connected, and that’s why we’re working with the best to deliver coverage above and beyond anything customers have ever seen before,” said Mike Sievert, CEO of T-Mobile. “More than just a groundbreaking alliance, this represents two industry-shaking innovators challenging the old ways of doing things to create something entirely new that will further connect customers and scare competitors.”

“The important thing about this is that it means there are no dead zones anywhere in the world for your cell phone,” said SpaceX Chief Engineer Elon Musk. “We’re incredibly excited to do this with T-Mobile.”

To provide this service, the companies will create a new network, broadcast from Starlink’s satellites using T-Mobile’s mid-band spectrum nationwide. This true satellite-to-cellular service will provide nearly complete coverage almost anywhere a customer can see the sky.

With this technology, T-Mobile is planning to give customers text coverage practically everywhere in the continental US, Hawaii, parts of Alaska, Puerto Rico and territorial waters, even outside the signal of T-Mobile’s network starting with a beta in select areas by the end of next year after SpaceX’s planned satellite launches. Text messaging, including SMS, MMS and participating messaging apps, will empower customers to stay connected and share experiences nearly everywhere. Afterwards, the companies plan to pursue the addition of voice and data coverage.

In addition, the CEOs shared their vision for expanding Coverage Above and Beyond globally, issuing an open invitation to the world’s carriers to collaborate for truly global connectivity. T-Mobile committed to offer reciprocal roaming to those providers working with them to enable this vision.

Today’s news is the next step in T-Mobile’s quest to deliver Coverage Beyond. Earlier this year, the Un-carrier gave customers enhanced connectivity beyond the reach of its network – in the air and abroad. Today’s move is the next step on the path to provide the ultimate coverage experience.

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Cautionary Statement Regarding Forward-Looking Statements

This communication contains certain forward-looking statements, including T-Mobile’s plans to increase cell phone coverage while utilizing Starlink, and offer such coverage to its customers. Forward-looking information is based on management’s estimates, assumptions and projections, and is subject to significant uncertainties and other factors, many of which are beyond the Company’s control. Important risk factors could cause actual future results and other future events to differ materially from those currently estimated by management, including, but not limited to: the timing and finalization of agreements relating to building out the new network, and the time and costs relating to building out the network.

About T-Mobile US, Inc.

T-Mobile US Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Sprint. For more information please visit: https://www.t-mobile.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220825005742/en/

Media Contacts

T-Mobile US, Inc. Media Relations

MediaRelations@t-mobile.com

Investor Relations Contact

T-Mobile US, Inc.

investor.relations@t-mobile.com

https://investor.t-mobile.com

Source: T-Mobile US, Inc.

FAQ

What is T-Mobile's new partnership with SpaceX about?

T-Mobile partnered with SpaceX to provide universal cell phone coverage using Starlink satellites.

When will T-Mobile's new satellite service begin?

The service is set to enter beta testing by the end of next year.

What areas will T-Mobile's new service cover?

It aims to cover remote areas, including much of the U.S., Hawaii, and parts of Alaska.

How will T-Mobile's new service work?

Most smartphones on T-Mobile's network will connect to Starlink satellites without extra equipment.

What is the stock symbol for T-Mobile?

The stock symbol for T-Mobile is TMUS.