T-Mobile CEO: Cellular Starlink usage lower than expected


T-Mobile has been offering SpaceX’s satellite-to-phone service, Starlink Mobile, since last year. But usage hasn’t been as high as the carrier originally expected, according to T-Mobile’s CEO.

On an earnings call Tuesday, Srini Gopalan talked about the service, which T-Mobile has called T-Satellite. “Our partnership with SpaceX is very strong, we worked closely with them to really invent an entire category. That has put an end to dead zones. We are pleased with that.” Gopalan initially said. (Your comments can be found in the 36th minute.)

Still, T-Mobile’s CEO suggested that the company’s terrestrial cellular network, which can still offer broad coverage, has been meeting customer needs. In contrast, T-Satellite is only activated for users in select rural and remote areas, outside the operator’s traditional coverage zones.

“Most of the (T-Satellite) usage we’re seeing is in national parks. And if anything, thanks to the great network that Dr. Saw (T-Mobile’s chief technology officer) has built, we’re seeing a lot less usage than we originally thought. But it’s a great complementary product,” he added.

Coverage areas for T-Mobile and T-Satellite.

Coverage areas for T-Mobile and T-Satellite. (T-Mobile)

T-Satelite generated some excitement last year, attracting around 1.8 million registrations, except for the free beta version. Since then, T-Mobile has not revealed the exact subscriber count when T-Satellite is only free for the most premium plans; all other users must pay $10 per month for the service.

tsat logo

(PCMag/Michael Kan)

However, Speedtest.netOokla’s parent company released data last week that found The number of American and Canadian users accessing satellite-to-phone services like T-Satellite has seen a drop in recent months. It’s possible that winter weather and T-Satellite’s move from a free beta to a largely paid service were the determining factors. Ookla’s data also looked at Android usage when most US users use iPhones, which already offer free satellite messaging in dead zones through Apple’s partner Globalstar.

If consumers pay for satellite-to-phone services, and to what extent, remains an ongoing debate. Technology is also set to improve; SpaceX is aiming for 5G download speeds and 150 Mbps per user via next-generation satellite upgrades when current speeds are intimately at 4 Mbps.

Despite the lower-than-expected usage, the T-Mobile CEO also sees T-Satellite as an important competitive offering that will help it stand out from its rivals. Both AT&T and Verizon have been betting on the rival satellite provider AST Mobile Space. Verizon also offers emergency satellite messaging through partners Skylo. But for now, T-Satellite has been offering access not only to satellite messaging, but also data for select mobile applications, including video call.

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Gopalan added: “And if we look into the future, we see a lot of other space providers coming out, and we think the way this is going to evolve, as a complementary product, it’s going to become more and more of a standard feature of a whole set of offerings. In a sense, less differentiated, and we’re fine with that on the Un-carrier (T-Mobile), because this is our story. We go out, we innovate, we create a breakthrough, we solve a customer problem, and then everyone else follows us, and as long as they follow us, we’re in our next big breakthrough.”

Still, the T-Mobile CEO does not plan to create a virtual mobile network operator or OMV partnership with SpaceX/Starlink in terms of cellular connectivity. In the results call, Gopalan reiterated T-Mobile uses MVNOs if it can help it expand the company’s overall addressable market, for example by targeting a new customer base or sales channel.

“It’s not obvious to me how an MVNO with SpaceX, or any other LEO (low Earth satellite) operator meets those conditions,” he said. But on Tuesday, T-Mobile did it. announce a partnership with SpaceX to use home broadband-focused Starlink to help deliver high-speed internet to businesses in remote areas.

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