When a T-Mobile subscriber finds himself unable to connect to a cellular network, he gets connected to his carrier’s satellite service in order to maintain a wireless connection. Over hundreds of thousands of smartphone users have signed up to try the service which allows one to stay in touch during an emergency that prevents cellular networks from operating. When the cell networks go down, or you find yourself in a dead zone with no connectivity, your phone will automatically connect to the satellite network allowing you to at first send texts to users. Eventually, the service will allow calls, texts, and data to be connected via satellite in dead zones throughout the country.
T-Mobile customers on the Go5G Next and Experience Beyond plans will have access to the satellite service for free while subscribers to other plans, including those offered by AT&T and Verizon, will pay $10 per month. That rate will start when the service, now named T-Satellite, kicks off in July and it will stay in place for one year. As we told you when we first reported in February on T-Mobile’s Super Bowl ad promoting the satellite service, the US has 500,000 square miles that are not covered by cellular signals.
T-Mobile also has offered consumers various promotions tied to its satellite service. The carrier has 550 satellites in orbit to make T-Satellite work. These satellites were placed into orbit with help from Elon Musk’s SpaceX. Both AT&T and Verizon will be offering satellite service of their own with both carriers partnering up with AST Space Mobile.
Despite what would appear to be good news from T-Mobile, the Q1 report didn’t completely please Wall Street, It seems that analysts who follow T-Mobile expected it to report more new phone customers in the quarter. As a result, for the week T-Mobile shares declined $28.23 or more than 10.82% to close Friday at $232.77.
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