T-Mobile has officially named its direct-to-cell satellite service T-Satellite and has also announced pricing details for it. The service is designed to offer connectivity to T-Mobile subscribers even when they cannot access cellular networks. This initiative allows users to send texts during emergencies and eventually will enable voice calls, texts, and data services in areas devoid of cellular coverage. During a recent first-quarter earnings call, T-Mobile CEO Mike Sievert shared insights about the service, currently in beta testing, which has attracted hundreds of thousands of users eager to stay connected in critical situations.
T-Mobile’s unique offering is particularly relevant as the U.S. has approximately 500,000 square miles lacking cellular coverage. Subscribers on the Go5G Next and Experience Beyond plans will enjoy T-Satellite free of charge, while users on other plans will face a fee of $10 per month. This pricing will go into effect when the service launches in July and will be locked in for the first year. In addition to the satellite service, T-Mobile has initiated various promotions to entice customers.
The company operates 550 satellites in orbit, which were deployed in collaboration with Elon Musk’s SpaceX. Competitors AT&T and Verizon are also preparing to launch their satellite services through partnerships with AST Space Mobile. Despite the positive news regarding T-Satellite, T-Mobile’s first-quarter report fell short of analyst expectations, which anticipated a higher influx of new phone customers. Consequently, T-Mobile’s stock prices dropped by over 10% in a week, closing at $232.77 on Friday.