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T-Mobile, SpaceX Plan ‘Not a Game-changer,’ says GlobalData — T-Mobile and SpaceX will partner to provide satellite-based mobile phones in remote US coverage areas using T-Mobile’s mid-band spectrum. Yet while this plan is important, it is not a mobile industry game-changer, says GlobalData.

“The agreement between T-Mobile and SpaceX is a milestone in enabling emergency communications from remote locations devoid of terrestrial cell towers. The service is intended primarily for use in remote areas that are cellular dead zones, with the satellite fully emulating a cell tower, but with a much larger cell size,” GlobalData Principal Analyst Tammy Parker said. “However, it does not alter the overall competitive landscape among US mobile operators or the need for national and international roaming agreements to support service in places served by other carriers."

Service in remote US coverage areas will initially be restricted to SMS, MMS, and some other partner messaging services, according to Parker. This highlights that the T-Mobile and SpaceX collab will mainly target emergency messaging when it launches. 

Most phones using T-Mobile as a carrier will be able to connect to this remote service. “Plus, T-Mobile has pledged to include the service at no extra charge in its most popular plans, which will be appealing to people who expect to find themselves in areas with spotty or non-existent terrestrial cellular coverage,” said Parker. 

The collaboration is far off from reaching across borders, however. “It’s important to see this announcement for what it is: A call to partnership action,” said Technology Service Director at GlobalData Emma Mohr-McClune. “But to be able to offer this form of emergency or remote service back-up internationally, SpaceX will need to attract dozens of carriers from other markets. We’re clearly a long way off that scenario.”

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