Verizon teams up with satellite service provider Skylo to launch direct-to-device messaging for customers
Rhea-AI Summary
Verizon and Skylo have partnered to launch a commercial direct-to-device messaging service for Verizon customers, providing connectivity in areas without cellular coverage. Starting this fall, select smartphones will have access to emergency messaging and location sharing via satellite. By next year, Verizon plans to offer text-anywhere satellite capabilities for certain devices.
Verizon is the first mobile carrier globally to launch supplemental smartphone connectivity on Skylo's non-terrestrial satellite network. The companies are also collaborating on satellite IoT technology, successfully demonstrating how Verizon-enabled IoT devices can roam onto satellite networks when out of cellular range. This innovation has potential applications in transportation, agriculture, maritime, environmental monitoring, and asset tracking.
Positive
- First mobile carrier to launch commercial direct-to-device satellite service
- Expansion of coverage to areas without cellular networks
- Successful demonstration of satellite IoT roaming capability
- Potential for new applications in various industries
Negative
- initial availability to select smartphones
- Full text-anywhere capabilities not available until next year
Insights
Verizon's partnership with Skylo marks a significant leap in connectivity solutions, addressing important gaps in cellular coverage. This direct-to-device messaging service enhances Verizon's value proposition, potentially boosting customer retention and acquisition in rural areas. The satellite IoT roaming capability opens new revenue streams in enterprise solutions across various industries.
However, the impact on Verizon's bottom line may be initially. The service's rollout on "certain smartphones" suggests a gradual implementation and full texting capabilities won't be available until next year. The true test will be in the execution and adoption rates, especially considering potential pricing structures and device compatibility issues.
This partnership positions Verizon as an innovator in the U.S. telecom market, being the first to launch a commercial direct-to-device satellite service. It addresses a growing consumer demand for ubiquitous connectivity, potentially giving Verizon an edge over competitors. The move aligns with the global trend of terrestrial-satellite network convergence, exemplified by Apple's Emergency SOS and T-Mobile's collaboration with SpaceX.
The enterprise applications in IoT could be a game-changer, opening up new markets in sectors like agriculture, logistics and environmental monitoring. However, the success will depend on pricing, ease of use and the speed at which Verizon can scale this technology across its customer base and device portfolio.
While this partnership showcases Verizon's commitment to innovation, its immediate financial impact may be modest. The initial rollout focuses on emergency messaging, with full texting capabilities delayed until next year. The real financial potential lies in the enterprise IoT applications, which could drive significant revenue growth if successfully implemented.
Investors should monitor key metrics such as adoption rates, ARPU changes in rural areas and enterprise contract wins leveraging this technology. Capital expenditure for integrating satellite capabilities and potential revenue sharing with Skylo are factors to consider. Overall, this move strengthens Verizon's competitive position but may take time to materially impact financials.
Companies collaborate to launch commercial satellite-based service for consumers and drive technology innovation through first-of-its-kind satellite IoT trial
SAN FRANCISCO, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Verizon, the nation’s largest wireless network provider, and Skylo, a pioneer in Non-Terrestrial Network (NTN) communications, have teamed up to launch a commercial direct-to-device messaging service for Verizon customers so they can stay connected wherever they are. Starting this fall, customers on certain smartphones have access to emergency messaging and location sharing even when a terrestrial cellular network is not available. Coming next year, Verizon will offer the ability to text anywhere via satellite for customers with select devices.
“Verizon has been driving innovation in the use of supplemental satellite capabilities for years using satellite connections for cell tower rapid deployments, emergency response and temporary solutions. We are encouraged by the progress being made in satellite to device communications for consumers and are equally excited to be driving technical innovation trials in the space of satellite IoT solutions,” said Srini Kalapala, Senior Vice President of Technology and Product Development for Verizon.
Skylo utilizes dedicated, licensed mobile satellite spectrum for connectivity which avoids network interference with terrestrial signals and ensures ubiquitous coverage for customers in rural or rugged areas when low population density, technical challenges, and economic viability make building a cellular network infeasible. Verizon is the first mobile carrier worldwide to commercially launch supplemental smartphone connectivity on Skylo’s non-terrestrial satellite network and the first mobile carrier to launch a commercial direct-to-device service offering.
“Our work with Verizon strengthens our belief in network convergence between satellite and cellular, and now this vision is a reality today for both consumers and enterprises. Satellite access isn’t just about reaching out when you’re in trouble; it’s connectivity for staying in touch with your loved ones wherever they are. We are excited to partner with the carrier known globally for its powerful performance and reliable service as we bring a new level of connectivity from space,” said Parthsarathi Trivedi, CEO & co-founder of Skylo.
Driving future satellite innovations for enterprise customers
Verizon has been a leader in driving IoT offerings in 4G with Narrow Band IoT and driving emerging IoT offerings using RedCap technologies. In collaboration with Skylo, Verizon has engaged in research and development of satellite IoT technology leading to engineers successfully demonstrating how a Verizon-enabled IoT device can roam onto a satellite network when out of range of the terrestrial cellular network providing enhanced geographic coverage for IoT devices.
“Verizon’s network boasts an exceptionally large terrestrial cellular network and covers more than
This satellite IoT roaming capability is particularly critical for IoT and has the potential for numerous applications across various industries, including transportation, agriculture, maritime, environmental monitoring, and asset tracking. For example, in agriculture, satellite IoT can be used to monitor cattle movements, crops, soil quality, and meteorological conditions in remote areas where terrestrial connectivity is not typically needed. In asset tracking, the ability to roam on satellite networks will allow for accurate tracking and condition evaluations in real-time even in the middle of the ocean.
These solutions, which require lower-complexity, low throughput, energy-efficient IoT devices, are ideally suited for the satellite roaming arrangement. In Verizon and Skylo’s recent proof-of-concept, the companies were able to complete a connection using a Verizon enabled IoT cellular device across both Verizon’s cellular network and Skylo’s satellite network, proving the interoperability and demonstrating the value of this seamless roaming capability.
MEDIA CONTACT:
Karen Schulz
864.561.1527
Karen.schulz@verizonwireless.com
FAQ
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