AT&T Inc. (NYSE:T) and satellite provider AST SpaceMobile Inc. (NASDAQ:ASTS) are joining forces to offer wireless service from space, presenting a challenge to Elon Musk’s SpaceX, which secured a similar deal two years ago with T-Mobile US Inc. (NASDAQ:TMUS).
The partnership between AT&T and AST SpaceMobile has been formalized after a period of testing. They announced on Wednesday that their agreement to establish a space-based broadband network will extend until 2030. Chris Sambar, AT&T’s head of network, will join the board of AST SpaceMobile, further solidifying a relationship that dates back to at least 2018.
In an interview, Sambar expressed confidence in AST SpaceMobile’s technology, citing the performance of the BlueWalker 3 test satellite. He described the evolving relationship as a transition from a “loose partner to a strategic partner.”
Wireless providers are racing to offer connectivity to the estimated 5 billion mobile phones worldwide, especially in remote areas beyond the reach of traditional cell towers. These services promise connectivity in rural regions and places like national parks, supplementing standard wireless coverage.
The new network will be compatible with regular mobile phones, eliminating the need for bulky specialized equipment required by current call-via-satellite services.
Jeff McElfresh, AT&T’s chief operating officer, stated, “Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network.” He added that the agreement represents a step forward in leveraging satellite technologies to expand services to consumers and previously unreachable locations.
AST SpaceMobile’s founder and CEO, Abel Avellan, emphasized the potential of space-based cellular broadband directly to everyday smartphones through the partnership with AT&T.
AST SpaceMobile plans to launch five satellites to Cape Canaveral, Florida, this summer for deployment into low Earth orbit. AT&T’s Sambar did not specify when customer service might commence but described it as a “full data service,” offering capabilities beyond existing low-Earth orbit constellations.
T-Mobile is collaborating with SpaceX’s Starlink service for low-Earth orbit communication. SpaceX, led by Elon Musk, boasts approximately 6,000 satellites in low-Earth orbit, facilitating rapid communication between spacecraft and terrestrial users.
In January, SpaceX launched its first batch of satellites capable of providing mobile phone service globally. Musk stated on X (formerly Twitter) that the service would enable mobile phone connectivity worldwide, albeit with technical limitations compared to terrestrial cellular networks.
In 2022, Apple Inc. introduced an emergency satellite messaging feature for iPhones, allowing users to send SOS messages without a cellular connection.
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