US telecom giants AT&T, T-Mobile US, and Verizon are looking to form a joint venture (JV) targeted at pooling some of their spectrum resources that would then be provided to satellite providers to bridge rural wireless coverage gaps.

The JV, which is confidently labeled as an “agreement in principle” and at this point “remains subject to negotiating definitive agreements between the parties and satisfying customary closing conditions,” is eyed at helping “satellite providers reach more customers through a unified platform.” This will happen

The potential JV’ers pointed to several “industry benefits,” including “enabling competition, fostering innovation, expanding access, and simplifying integration, delivering significant benefits for satellite and mobile connectivity.”

Somewhat specifically – though lacking in any real detail – they point to the ability for more satellite service providers to gain “opportunities to compete, invest, and grow,” and that the JV “will work with rural mobile network operators to enable them to bring new products to market for their customers.” This will be enabled through a “technology neutral innovation platform” that will allow for “easy technical integration” to support new services.

There are also claims that the venture will allow for a more efficient use of spectrum and a “standards-based approach” to the development of mobile devices.

The JV notice repeatedly points to satellite-based connectivity as a “supplement” to traditional cellular-based services, and states that “existing carrier-satellite agreements will remain in place and the JV partners can continue connectivity efforts independently.” That is an important stipulation, as all three operators have made such “supplement” statements and all have spectrum-related agreements with satellite providers already in place.

AT&T and Verizon both have spectrum arrangements with AST SpaceMobile, an arrangement that just recently received Federal Communications Commission (FCC) approval. T-Mobile US has a similar arrangement with SpaceX, though SpaceX recently gained access to more of its own spectrum through a deal with EchoStar.

These arrangements use traditional cellular spectrum that allows for direct-to-device (D2D) connectivity on already available devices.

Is there an MVNO opportunity?

The JV also comes as telecom operators have been questioned over potential mobile virtual network operator (MVNO) arrangements with satellite communication providers, a notion that carrier executives have shot down.

“We're just not seeing the pattern match between what makes us think about what could be a good MVNO partner, and that's usually attracting certain specific demographics or segments, or some sub-segment of the consumer base or business base that we don't have an advantaged ability to go get after,” T-Mobile US CFO Peter Osvaldik told an audience at this week’s MoffettNathanson Media, Internet & Communications Conference. “And you just don't see a pattern match between the satellite constellations and that. So generally [it] doesn't seem to fit.”

Verizon CEO Dan Schulman, speaking at the same conference, was more succinct when asked about that satellite-MVNO opportunity, simply stating “no.”

Despite the slight, satellite providers have been using their well-financed positions to more aggressively target deployments.

Executives for SpaceX’s Starlink division recently told an audience at the Mobile World Congress (MWC) event that they expect to surpass 25 million active users by the end of 2026, driven by a growing first-generation mobile constellation and plans for a second-generation offering 5G-like broadband service. It’s also expected to launch a second constellation generation beginning next year that it thinks will provide a “terrestrial-like connectivity” experience.

Amazon is the other well-financed satellite player, a position it more recently enhanced through the $11.6 billion purchase of long-time market participant Globalstar.