(Credit: T-Mobile)
T-Mobile didn’t initially plan to open Starlink’s cellular service to users on rival carriers. But that changed after Verizon aired a big-budget commercial last week touting its own satellite-to-phone capabilities.
"I’ll be transparent. This wasn’t part of the original plan. And then Verizon released this ad," Clint Patterson, SVP of marketing for T-Mobile, told PCMag in an interview.
The ad in question features legendary NASA astronaut Buzz Aldrin declaring that Verizon is using satellites to conquer cellular dead zones. “With satellite, you can text from anywhere,” he says as he uses a Verizon phone to connect via satellite and plants "Verizon Satellite Powered: flags in various remote locations.
The commercial even features the “Can you hear me now?” guy, actor Paul Marcarelli, visiting a satellite in space. But while the ad is meant to excite consumers, it also rankled T-Mobile executives, who claim Verizon’s marketing overstated its role in providing satellite capabilities.
"They’re telling their customers something that we think is borderline deceptive," Patterson alleged in an interview with PCMag. "And so we saw that ad advertising something that you can’t get and can’t use on Verizon’s network. We felt like, ‘Hey, we actually need to make this service available to more people than just our customers.’”
T-Mobile has since aired its own ad during the Super Bowl that tries to make an even bigger splash in satellite connectivity. The carrier has decided to open up its free beta program for SpaceX’s cellular Starlink service to all US users with compatible smartphones. In July, T-Mobile will also officially launch the satellite capability to all US customers, including those from AT&T and Verizon, by offering the service through downloadable eSIMs.
The news underscores the growing rivalry in the satellite-to-phone market, and how T-Mobile is moving with SpaceX to potentially conquer the sector. "We don’t think we’re the leader. We know we’re the leader," Patterson said.
T-Mobile’s gripe with the commercial is how it makes Verizon look like the primary company behind the satellite connectivity when it’s actually tapping existing satellite messaging from Apple and a third-party provider called Skylo.
“Effectively, what they’re doing in that ad is talking about Apple’s [satellite] service that you can get from anyone. And Skylo’s service, which does not touch their network in any way shape or form. And then positioning that as if that somehow makes their network better,” Patterson said. “That would be like us positioning a Wi-Fi provider as somehow making our network better. It just simply doesn’t. It doesn’t touch their network. It doesn’t use any part of their network.”
Apple and Skylo also rely on a smaller number of satellites to power the messaging. In contrast, T-Mobile has partnered with SpaceX to operate a rival service through a growing constellation of over 430 satellites and counting. The same satellites have also received FCC authorization to use T-Mobile’s licensed radio spectrum to beam the data to unmodified smartphones on the ground. For now, the satellites only support SMS-based text messaging, but eventually they’ll power voice and video calling, along with internet browsing, pending regulatory approvals.
It’s why Patterson says, “This is the only space-based mobile network in the US. Period,” although competition is rising from AST SpaceMobile and Apple’s Globalstar.
T-Mobile’s ambitious plan to open the cellular Starlink service to all US users may seem risky, given potential congestion and signal quality issues. But Patterson noted: “The intention of going big on the biggest stage in advertising is to really test this thing at scale, prior to our commercial launch this summer.”
“So we’re confident we can scale up to meet the demand for this,” he added. “But no one has ever done anything like this in history… And so we’re taking a very measured approach.”
As a result, T-Mobile plans to onboard new users on a first-come, first-served rolling basis. Currently, it already has “tens of thousands” of T-Mobile subscribers enrolled in the beta program, which began accepting sign-ups in December.
So far, the beta has shown T-Mobile and SpaceX still need to smooth out certain areas of the service, including inconsistent signal issues. “We see folks who are having amazing experiences. We see folks who are having challenging experiences,” Patterson said. “All of those are great, they are teaching us where to put our focus. But overall we have positive Net Promoter Scores for a service that is in early beta, which is pretty amazing. Eighty percent say ‘Yes, the service is clear and helpful.’ Eighty-one percent say ‘It’s meeting their expectations.’”
To improve the signal quality and coverage, SpaceX is preparing to launch hundreds of additional “direct to cell” Starlink satellites into orbit while T-Mobile is optimizing the network. Patterson also revealed that the service expects to roll out support for sending images in SMS messages before the free beta ends in July.
After that, T-Mobile will start charging many of its own customers $15 per month per line for the satellite connectivity; those on its most expensive plan, Go5G Next and other premium business plans, will receive the Starlink access as a free perk. US users on other carriers will need to pay $20 per month per line to receive the capability through a downloadable eSIM.
“This is a competitive price point versus other solutions in the market,” Patterson said, noting the satellite connectivity will add other features, including international roaming and coverage out on the water. He said T-Mobile has "no plans" to charge more for more services at the moment.
In response to the criticism from Patterson over the Buzz Aldrin ad, Verizon told PCMag it's long been working with satellite providers. "For years, when emergencies have happened, we have deployed satellite-linked portable equipment to help first responders and communities maintain the essential communication needed during those incidents," the carrier said.
"With new cell towers providing additional coverage especially in rural areas, customers have used satellite connections until fiber was deployed. And with technological advancements, customers can now use satellite connectivity for messaging in the rare instance when cellular coverage is not available," it said.
Verizon also noted it's investing $100 million into AST SpaceMobile, which is developing its own cutting-edge satellites to power SMS, data and video calling to phones.
That said, the National Advertising Division in November recommended that Verizon discontinue or modify claims about its satellite-powered text messaging after T-Mobile complained that Verizon wasn't doing enough to disclose the limitations of its satellite messaging services.
5 Things to Know About Starlink Satellite Internet
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