These Rival Telecom Giants Came Together To End What They Called ‘Dead Zones’ In The US

• The joint venture will also help all three carriers provide their customers with a more seamless experience, as satellite services integrated into the partnership will serve as supplementary components to their core wireless offerings.
• According to the statement, the joint venture has been agreed in principle but remains subject to negotiation of definitive agreements between the parties and to satisfaction of customary closing conditions.
• The statement added that present carrier-satellite agreements will remain in place, and the joint venture partners can continue connectivity efforts independently.

Shares of major telecom operators drew investor attention early in the premarket on Thursday after AT&T (T), T-Mobile (TMUS), and Verizon (VZ) announced plans to form a joint venture to end wireless dead zones across the United States.

The telecom operators stated that the joint venture will use satellite-based direct-to-device (D2D) communications technology to expand its wireless mobile network in rural areas and address coverage gaps.

This move comes amid rising industry interest in satellite-to-phone services, popularized by partnerships involving SpaceX and AST SpaceMobile. 

T, TMUS, VZ To Form A JV: What Will It Do?

The joint venture has been agreed in principle but remains subject to negotiation of definitive agreements between the parties and to satisfaction of customary closing conditions, according to the statement.

It further added that the joint venture will aim to pool limited spectrum resources to boost satellite capacity, establish unified technical specifications and industry standards for satellite operators, enable seamless handoffs between terrestrial networks and satellite coverage, and expand access for rural mobile network operators and satellite service providers.

The joint venture will also help all three carriers provide their customers with a more seamless experience, as satellite services integrated with the partnership will function as supplementary components to core wireless offerings, enhancing convenience, enabling competition, and fostering innovation across the industry.

The statement added that present carrier-satellite agreements will remain in place and the joint venture partners can continue connectivity efforts independently.

Telecom Rivals Join Forces On Satellite Connectivity 

“By joining with other carriers, we're bringing our combined expertise to accelerate our customers' access to reliable, always-on coverage everywhere," said John Stankey, Chairman and Chief Executive Officer at AT&T.

Meanwhile, Srini Gopalan, President and CEO at T-Mobile, said, "With the expansion of satellite constellations, soon to be supported by multiple space-based operators, this JV will use expanded capacity and improved performance to deliver the best possible service to customers.” 

Dan Schulman, CEO at Verizon, stated that the partnership is about building resilient digital infrastructure that adapts to customers' needs wherever they go.

T, TMUS, And VZ Stocks: What Retail Thinks About Them

On Stocktwits, retail sentiment surrounding AT&T, T-Mobile and Verizon has been in a ‘bearish’ zone, amid ‘normal’ message volumes in the past 24 hours

Shares of AT&T were flat year-to-date, while T-Mobile shares declined over 4% and Verizon Communications shares gained more than 16% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Precigen’s Lead Cancer Therapy Is Fueling A Massive Stock Rally — Here’s What Wall Street Sees Next