US Carriers Formalize Satellite Direct-to-Device Joint Venture, Name Interim CEO

AT&T, T-Mobile, and Verizon have formally established the direct-to-device joint venture the three carriers first announced in May. Wireless industry executive Paul Roth will serve as interim CEO while the partners search for a permanent leader.

The joint venture focuses on satellite-to-phone connectivity, with the companies citing goals of fostering competition among satellite providers, advancing a standards-based approach to device compatibility, and making efficient use of spectrum. The move comes as SpaceX has set its sights on competing with the three carriers through its next-generation Starlink Mobile service.

The three carriers currently take different approaches to satellite D2D. T-Mobile offers service with SpaceX, AT&T is set to offer service with AST SpaceMobile, and Verizon offers service on some Android phones with Skylo while also holding a commercial agreement with AST SpaceMobile. The JV is not exclusive. The carriers said their existing carrier-satellite agreements will remain in place and that JV partners can continue independent connectivity efforts.

Friday's announcement said the arrangement will create new opportunities for satellite service providers. "More satellite service providers will gain opportunities to compete, invest, and grow and the JV will work with rural mobile network operators to enable them to bring new products to market for their customers," the announcement said. The companies said the venture will result in fewer coverage gaps, improved network performance, and more access to D2D services for their customers.

When the carriers first announced plans for the JV, their chief executives made clear they want multiple satellite options in a wholesale market for D2D. "We'll keep pricing in check, so there isn't a bottleneck of any particular single provider that can dictate what that pricing is," AT&T CEO John Stankey said in May. T-Mobile CEO Srinivasan Gopalan later told investors he expects "the vast majority [of satellite] will be sourced through the JV" in the future.

The carriers have framed the venture as a way to encourage competition among satellite providers and to prevent any single provider from dictating pricing. The leadership named their intent to source most satellite connectivity through the JV while keeping existing agreements intact.

Next steps include the search for a permanent CEO, with Paul Roth holding the interim role during that process. The carriers have indicated the JV will work with rural mobile network operators to bring new products to market.