AT&T deal with AST SpaceMobile to provide wireless service from space

AT&T. and satellite provider AST SpaceMobile are teaming up to provide wireless service from space — a challenge to Elon Musk’s SpaceX, which struck a similar deal two years ago with T-Mobile US.

AT&T and AST SpaceMobile formalized the partnership following an earlier testing period. They said on Wednesday that their agreement to build a space-based broadband network will run through 2030.

AT&T head of network Chris Sambar will join the AST SpaceMobile board, deepening a relationship that dates back to at least 2018. Sambar said in an interview that his team is confident in AST SpaceMobile’s technology, as demonstrated by the performance of the BlueWalker 3 test satellite. The relationship is moving from “loose partner to a strategic partner,” he said.

Wireless providers are in a race to offer connections for the world’s estimated 5 billion mobile phones when those devices are in remote areas beyond the reach of cell towers. For consumers, these services hold the promise of connectivity along rural roads and in places likes national parks. The service is typically marketed as a supplement to standard wireless coverage.

The new network will work with ordinary mobile phones, offering a level of convenience that’s lacking in current call-via-satellite services, which require the assistance of bulky specialized equipment.

“Space-based direct-to-mobile technology is designed to provide customers connectivity by complementing and integrating with our existing mobile network,” said Jeff McElfresh, AT&T’s chief operating officer, in a statement. “This agreement is the next step in our industry leadership to use emerging satellite technologies to provide services to consumers and in locations where connectivity was not previously feasible.”

Abel Avellan, AST SpaceMobile’s founder, chairman and chief executive officer, said in a statement his company’s partnership with AT&T “has paved the way to unlock the potential of space-based cellular broadband directly to everyday smartphones.”

AST SpaceMobile this summer will send five satellites to Cape Canaveral, Florida, for launch into low Earth orbit. AT&T’s Sambar didn’t say when service to customers might begin.

“This will be a full data service, unlike anything you can get today from a low-Earth orbit constellation,” Sambar said.

T-Mobile is working with the low-Earth orbiting Starlink service from Musk’s Space Exploration Technologies Corp. The mobile carrier earlier said that its calling-via-satellite service could begin this year.

SpaceX has roughly 6,000 satellites aloft in low-Earth orbit — far more than any other company. The trajectory, with satellites circling near the Earth’s surface, allows communications signals to travel quickly between spacecraft and a terrestrial user.

SpaceX in January launched its first set of satellites capable of offering mobile phone service. The service “will allow for mobile phone connectivity anywhere on Earth,” Musk said in a post on X, the social network formerly known as Twitter, though he added that technical limitations mean “it is not meaningfully competitive with existing terrestrial cellular networks.”

Apple Inc. in 2022 introduced an emergency satellite-messaging feature for its iPhones. The service lets users send SOS messages without a cellular connection.

References:

https://www.bloomberg.com/news/articles/2024-05-15/at-t-strikes-space-broadband-deal-in-challenge-to-musk-s-spacex

AT&T and satellite provider AST SpaceMobile are teaming up to provide wireless service from space — a challenge to Elon Musk’s SpaceX, which struck a similar deal two years ago with T-Mobile. https://t.co/yFEXSE1oW7

— Bloomberg (@business) May 15, 2024

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