T-Mobile just lost its huge connectivity edge over AT&T and Verizon

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AST SpaceMobile AT&T Verizon
AT&T and Verizon's customers might soon be able to stay connected in dead zones just like T-Mobile subscribers as the Federal Communications Commission (FCC) has permitted satellite vendor AST SpaceMobile to test its technology.

The FCC has granted AST SpaceMobile Special Temporary Authority (STA) to test its satellite service with partners AT&T And Verizon in the US. The Texas-based space cellular startup sent its first five cellular BlueBird satellites into orbit in September.

Chris Ivory, Chief Commercial Officer at AST SpaceMobile, January 2025

AT&T and Verizon will contribute their 850MHz low-band spectrum to support voice, data, and video applications on unmodified smartphones.

The FCC's clearance will allow AST SpaceMobile to broadcast connectivity from BlueBird satellites using its partners' spectrum and test the service with phones on their networks. The satellites will act like 4G and 5G cell towers in space and provide space-powered broadband cellular connectivity.

In simple words, similar to T-Mobile and SpaceX's direct to cellular service, AST's agreement with AT&T and Verizon will ensure that phones are not left without connectivity in areas with no terrestrial coverage.

It could be months before the program is officially rolled out though. Even a beta is probably some time off, but this is a promising development regardless. For starters, the three will need to clear more regulatory hurdles. Also, AST SpaceMobiles had previously said it would need between 45 to 60 satellites to provide continuous service, and it's a long way off from that target at the moment.

T-Mobile and SpaceX were granted the STA in November and their beta program has only now kicked off. According to T-Mobile users, there are holes in the service, but when it works, it works well.

AT&T and Verizon haven't shared a timeline for the launch of the satellite service, but another AST SpaceMobile partner might serve as a proxy.

AST SpaceMobile has teamed up with many carriers around the world, including the UK's Vodafone, which just this week made a video call using BlueBird satellites. The company plans to offer commercial direct-to-smartphone broadband satellite service "from later in 2025 and 2026."
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