A surprise joint venture from the big three wireless carriers is already under fire from SpaceX, which is suggesting US regulators might intervene to stop the deal over alleged collusion.
AT&T, T-Mobile, and Verizon will work together to end cellular dead zones by beaming satellite connectivity to consumer phones. The goal is to give the emerging technology a boost and foster more competition. However, many industry watchers view the joint venture as a challenge to SpaceX, which is preparing major upgrades to its satellite-to-phone service, Starlink Mobile, including 5G speeds that might rival ground-based cellular networks.
In a tweet, SpaceX President Gwynne Shotwell subtly accused the three major carriers of ganging up to stop Starlink Mobile. “Weeeelllll, I guess Starlink Mobile is doing something right! It’s David and Goliath (X3) all over again — I’m bettin’ on David :),” she wrote.
SpaceX’s VP for Satellite Policy, David Goldman, went a little further. In his own tweet, he agreed with Shotwell, writing, “I’ll take that bet,” suggesting that Elon Musk’s company will be able to overcome any obstacle posed by the wireless carriers.
Goldman then copied and pasted comments from New York-based research firm Lightshed Partners, which published an article questioning the legality of the joint venture.
“The bigger question is whether the DOJ [US Justice Department] even allows it…Three high-margin competitors moving in parallel just as a new rival prepares to enter is the kind of pattern that raises real collusion concerns,” he wrote in the tweet.
This Tweet is currently unavailable. It might be loading or has been removed.
The big three carriers didn’t immediately respond to a request for comment. But the companies announced the joint venture just as SpaceX is preparing to go public, which could raise as much as $75 billion. The timing caused Lightshed Partners to write in the research firm’s full article: “We read the JV as a defensive move timed to the SpaceX IPO and doubt much comes of it.”
“You announce an agreement in principle when the point is the announcement, not the deal. The timing, weeks ahead of the SpaceX roadshow, was the point,” the research firm added. Goldman also highlighted that the joint venture is a “Press Release, Not a Deal,” even though the carriers are still negotiating the deal to form the new company.
Tweets loading on X while using T-Satellite/Starlink Mobile (Credit: Michael Kan/PCMag)
In the meantime, SpaceX has been offering Starlink Mobile through T-Mobile since last year for text messages, select mobile apps, and even video calls in cellular dead zones. The company has been pitching Starlink Mobile to the telecommunication industry as “complementary to terrestrial networks” rather than a competitor. But it’s also no secret that SpaceX has become the leading rocket provider while dominating the home broadband market with Starlink, raising questions about whether it might develop a monopoly over satellite communications.
Recommended by Our Editors
It might be why AT&T, T-Mobile, and Verizon emphasized that their joint venture is about enabling competition. The venture will also pool the carriers’ valuable radio spectrum for satellite-to-phone services. Hence, competitors to Starlink Mobile, such as AST SpaceMobile, the Amazon-bound Globalstar, and Skylo, a satellite communication partner with Verizon, could conceivably use the spectrum to bolster their own services.
Dave Limp, a former Amazon exec who is now CEO of Blue Origin, tweeted his support for the joint venture. “Great to see these industry leaders excited about and pushing forward on space-based connectivity. This will expand coverage to so many, globally. Excited to support this effort,” he wrote. (AST SpaceMobile used Blue Origin’s massive New Glenn to send up its latest satellite last month, but it didn’t exactly go as planned.)
In contrast, SpaceX is spending $20 billion in cash and stock to secure radio spectrum from Boost Mobile’s parent, EchoStar. This week, the Federal Communications Commission cleared the spectrum deal, calling it a win for consumers.
Still, FCC Chair Brendan Carr also wants to see at least three players in the satellite-to-phone market. On Thursday, he told journalists that the agency’s goal is to ensure that satellite-to-phone services get a fair shot, rather than picking a winner or shutting out the technology. The FCC also says it’s too early to determine who’s leading the market for satellite-to-phone services.
About Our Expert
Michael Kan
Principal Reporter
Experience
I’ve been a journalist for over 15 years. I got my start as a schools and cities reporter in Kansas City and joined PCMag in 2017, where I cover satellite internet services, cybersecurity, PC hardware, and more. I’m currently based in San Francisco, but previously spent over five years in China, covering the country’s technology sector.
Since 2020, I’ve covered the launch and explosive growth of SpaceX’s Starlink satellite internet service, writing 600+ stories on availability and feature launches, but also the regulatory battles over the expansion of satellite constellations, fights with rival providers like AST SpaceMobile and Amazon, and the effort to expand into satellite-based mobile service. I’ve combed through FCC filings for the latest news and driven to remote corners of California to test Starlink’s cellular service.
I also cover cyber threats, from ransomware gangs to the emergence of AI-based malware. In 2024 and 2025, the FTC forced Avast to pay consumers $16.5 million for secretly harvesting and selling their personal information to third-party clients, as revealed in my joint investigation with Motherboard.
I also cover the PC graphics card market. Pandemic-era shortages led me to camp out in front of a Best Buy to get an RTX 3000. I’m now following how the AI-driven memory shortage is impacting the entire consumer electronics market. I’m always eager to learn more, so please jump in the comments with feedback and send me tips.