The wireless carrier T-Mobile US Inc. will use Elon Musk’s SpaceX’s Starlink satellites to provide mobile users with network access in certain parts of the United States, the companies announced on Thursday.
The companies also detailed their plans to connect users’ mobile phones directly to satellites in orbit.
Musk made the announcement during a fancy event that took place on Thursday at his company’s rocket facility in south Texas. The new plans, which would exist alongside T-Mobile’s existing cellular services, would eliminate the need for cell towers and offer service for sending texts and images in areas where cell coverage does not currently exist. This is important for emergency situations in remote areas.
Starlink is a network of satellites that SpaceX has launched into low earth orbit. Its purpose is to provide high-speed internet connectivity to isolated areas all over the world. SpaceX was the company that carried out the launch. SpaceX has put more than 2,700 satellites into orbit to support this network.
The new network that will be created by Starlink’s satellites will make use of T-mid-band Mobile’s spectrum. The new service will start with texting services in a beta phase at the end of next year. Most of the phones that the company’s customers already use will work with the new service.
Users of mobile devices will not be required to upgrade to a new phone in order to access the service. Musk has said that the service should still work even if all of the cell towers are destroyed during or after a natural disaster.
Thursday’s trading session for T-Mobile came to a close higher by one point, at $147.07, and the stock was showing a little upward trend after the market closed.
This week, analysts at Morgan Stanley published a note on the industry in which they stated that they favored T-Mobile as a top pick within the realm of telecom services and that they “expect T-Mobile to continue to take share, driving superior top-and bottom-line growth, with the buyback likely to commence soon.”
