T-Mobile To Roll Out Satellite Data Service This October

T-Mobile US TMUS is looking to launch a new data service on its satellite-to-cell network, powered by SpaceX’s Starlink, by October.

T-Satellite, T-Mobile’s satellite-to-cell network service, will commercially launch on July 23. It will offer SMS texting, MMS, picture messaging, and short audio clips.

Over 1.8 million customers have signed up for the service since its beta program launch in 2024, including customers from AT&T T and Verizon Communications VZ following the Super Bowl ad, Reuters reported on Tuesday, citing Mike Katz, President of Marketing, Strategy and Products at T-Mobile during an event.

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The telecom company will launch a data service on October 1 to allow application experiences on the satellite network.

With over 657 Starlink satellites, the US wireless carrier is looking to extend connectivity to over 500,000 square miles in the US, which is unpenetrable to traditional cell towers.

This move addresses a significant coverage gap, bringing service to remote and underserved areas.

In May 2024, SpaceX itself demonstrated the capabilities of its direct-to-cell Starlink satellite technology with a live video call on X.

While T-Mobile is partnering with Starlink, competitors are also making strides in this area; Verizon and AT&T have tapped AST SpaceMobile to provide satellite service, with Verizon already having introduced satellite text messaging for its customers.

Apple Inc. AAPL is also actively investing in satellite-based communication, and reports suggest competition between Apple and SpaceX for limited spectrum rights.

The broader satellite communication market is experiencing significant growth, having been valued at $84.47 billion in 2023 and projected to reach $194.55 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 9.72% from 2024-2032.

This growth is driven by increasing demand for high-speed internet, expanding applications of satellite-based services in defense and commercial sectors, and continuous improvements in satellite technology.

Price Action: T-Mobile US stock is trading higher by 0.43% to $227.95 premarket at last check Monday. 

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