Yesterday, T-Mobile US fulfilled its satellite service plans, partnering with SpaceX’s Starlink service to deliver texting and data transfer services. We are very bullish on this offering as it represents a significant expansion in territory that is covered, while simultaneously reducing the need for rural towers. We believe the capital spending implications of working with a partner like SpaceX may mean that there will be little need to maintain far-flung towers. Additionally, T-Mobile US will continue to offer this Direct-to-Cell (D2C) service for $10 per month, potentially increasing its revenue opportunity while also likely improving the safety and enjoyment of its customers.
We have written extensively on how D2C leverages the fixed broadband satellite investments that have already been made and, working with Starlink, which now has 657 D2C capable satellites in space already, can offer a high quality data-focused, quality service.