T-Mobile plans to sell its T-Mobile Starlink service to AT&T and Verizon customers for $20/month per line
T-Mobile Starlink has officially entered the public beta phase. The long-awaited announcement came during yesterday’s Super Bowl game and according to the carrier, its direct-to-device (D2D) satellite service can deliver connectivity to the “more than 500,000 square miles of the country unreached by any carrier’s earth-bound cell towers.”
T-Mobile US explained in its press release that when a user’s cell phone gets out of range of a cell tower, the phone automatically connects to the T-Mobile Starlink network and that messages will be sent and received “just as they are today on a traditional network.” Further, the service works on most smartphones from the last four years, the carrier claimed. T-Mobile Starlink also broadcasts Wireless Emergency Alerts (WEAs) nationwide to anyone in range and with a compatible device, ensuring that everyone has access to critical, potentially life-saving messages.
Previously, T-Mobile CEO Mike Sievert said that beta onboarding has had an emphasis on users in the northern part of the country due to satellite densities, but “there’s rapid launches happening right now. So, the satellite density is rapidly improving.” The move from limited beta, to larger beta to commercial service “is going to start happening now in kind of rapid succession.”
While there has been some anticipation around the release of the beta test, an important question remains: What’s the commercial appetite to pay more to have satellite-based cellular service in areas not covered by terrestrial network? Well, according to Recon Analytics, 36% of postpaid subs are willing to pay at least $1 per month for satellite-based communication and 32% are willing to pay $5, and a median price among those willing to pay comes in at $10. For Recon, this suggests a very real monetary opportunity for operators.
The analyst firm also found that more than one in five customers would be willing to switch providers if it meant they could get satellite service. In the case of T-Mobile Starlink, switching might not be necessary. That’s because T-Mobile US is allowing AT&T and Verizon customers to use T-Mobile Starlink text messaging for free on their existing smartphone during the beta phase, and said that once the service launches in July, they can access it for $20/month per line. It’s an interesting move, one that many will interpret as an insult to its rivals who have yet to deliver satellite-based services.
