T-Mobile CEO Srini Gopalan emphasized that satellite direct-to-device (D2D) services, specifically T-Satellite, constitute a very small fraction of its total network usage, around 0.0002% based on May data. He views satellite services as complementary to terrestrial mobile service, not competitive, and stated that terrestrial networks are 100 to 1,000 times more efficient in urban and suburban areas. Gopalan believes approximately 5 million homes in the U.S. could be better served by satellite. This perspective comes amid speculation about a new joint venture announced by T-Mobile, AT&T, and Verizon, which many observers believe is a defensive move against SpaceX/Starlink Mobile's aggressive entry into wireless.
All three major U.S. carriers, including T-Mobile, have explicitly stated they are not interested in an MVNO (Mobile Virtual Network Operator) deal with SpaceX/Starlink. Gopalan reinforced this stance, stating that MVNOs only make sense for T-Mobile if they expand the total addressable market (TAM) to a new customer base, which he believes a deal with a Low Earth Orbit (LEO) operator like Starlink would not achieve. He also clarified the distinction between T-Mobile's direct-to-cell relationship with Starlink and Starlink's broadband service via SuperBroadband, noting that they are separate but complementary products. Despite lower-than-expected usage for T-Satellite, primarily seen in national parks, Gopalan credits T-Mobile and Starlink for pioneering the category.
Gopalan reiterated at a J.P. Morgan investor conference that the new joint venture aims to create an efficient wholesale infrastructure, especially concerning spectrum pooling. He highlighted that different carriers might own crucial spectrum in various remote areas, and pooling spectrum through the JV would create a uniform spectrum world, benefiting customers. He also stated that differentiation in the D2D space is diminishing as rivals mimic T-Mobile's initial offerings. The CEO's comments suggest that T-Mobile views its existing direct-to-device partnership with SpaceX as a hedge against disruption, integrating satellite connectivity to eliminate dead zones, rather than fighting the technology.
