T-Mobile CEO reveals which customers will have to pay for satellite texting
T-Mobile's satellite beta is now underway. The company struck a partnership with SpaceX to use its Starlink satellites as cell towers in space to envelop dead zones in the US with connectivity. The service is free for now, but eventually, some customers will be charged for it.
T-Mobiletoday announced fourth-quarter results. The company performed better than expected, with total revenue rising to $21.9 billion. It added 903,000 mobile customers and 428,000 high-speed internet subscribers.
During an earning call with analysts, President and CEO Mike Sievert revealed the company's plans regarding the monetization of the satellite service.
For now, select Samsung Galaxy phones and Apple iPhones have been optimized for Starlink-powered texting. Ultimately, it will be commercialized. As PCMag first reported, Sievert says that it will continue to be free for the customers on its most expensive plans. Customers on lower-tier plans will be able to add satellite service to their packages as a paid add-on. And, of course, some may migrate to pricier plans to have the service enabled by default.
And then finally, a la carte sales for those that don't have the plans that include it, and lots of other customers, there may be opportunities there.
T-Mobile is the first wireless carrier in the US to offer satellite communication, and this may not only help it retain subscribers but also attract customers from competitors. That said, AT&T and Verizon are also working to bring satellite connectivity to their customers. So while T-Mobile may be the only telecom company that ensures connectivity wherever you can see the sky right now, it will lose that edge as competitors roll out their services.
According to users who are subscribed to the beta, the service disconnects every so often and messages are sent at a slow speed, but they are impressed regardless.
The service should improve as more satellites are sent into space. Sievert says that the service is currently better in the northern part of the US right now due to more satellites.
At the moment, only texting is supported, and media attachments are no longer blocked, although only medium-resolution images and audio are supported for now. A future upgrade will also add video support. Later in 2025 and beyond, voice and data will also be activated.
T-Mobiletoday announced fourth-quarter results. The company performed better than expected, with total revenue rising to $21.9 billion. It added 903,000 mobile customers and 428,000 high-speed internet subscribers.
For now, select Samsung Galaxy phones and Apple iPhones have been optimized for Starlink-powered texting. Ultimately, it will be commercialized. As PCMag first reported, Sievert says that it will continue to be free for the customers on its most expensive plans. Customers on lower-tier plans will be able to add satellite service to their packages as a paid add-on. And, of course, some may migrate to pricier plans to have the service enabled by default.
...the most compelling reason in a long time to self-select up our rate card. And so this will be something that our -- the customers on our most value-packed plans will be able to benefit from. And so that's an area that we'll monetize. Attracting and retaining customers market share.
...this is a differentiated service that we think touches a card the American public, the idea of being connected everywhere. If you can see the sky, you're connected, this is powerful. It's likely to save lives, it's likely to change lives, and it's very attractive.
Mike Sievert, T-Mobile CEO, January 2025
I also have satelite texting through T-mobile on an s24 ultra in the middle of Nebraska. When im connected to sattelite its working as flawlessly as when im using towers, the texts send at a slower pace but nothing that i would consider inconsistent. Im even having luck with it inside of certain buildings, i can still stay connected. Overall im looking forward to the future use of this technology for data and voice capabilities.
Telsa, PhoneArena reader, January 2025
the satellite connectivity is already working last Thursday I went off roading in the Tonto national forest in AZ and it was fully functional with text. it is slower like that have mentioned, but it still works.
Blake, PhoneArena reader, January 2025
We've been emphasizing a little more in the northern part of the country, where the density of satellites is better. And meanwhile, there's rapid launches happening right now. So the satellite density is rapidly improving.
Mike Sievert, T-Mobile CEO, January 2025
T-Mobile users can send texts with image and audio attachments via satellites.
At the moment, only texting is supported, and media attachments are no longer blocked, although only medium-resolution images and audio are supported for now. A future upgrade will also add video support. Later in 2025 and beyond, voice and data will also be activated.
Things that are NOT allowed: