AT&T, Verizon and T-Mobile form satellite-to-phone venture to expand U.S. coverage

AT&T (T), Verizon (VZ) and T-Mobile US (TMUS) said May 14, 2026, they agreed in principle to form a joint venture to develop satellite-based direct-to-device communications, aiming to reduce U.S. wireless coverage gaps in rural and underserved areas. The venture will combine the carriers’ spectrum resources to increase capacity and create a common platform for satellite providers to reach more customers. The companies said existing agreements with satellite operators will remain in place, and each carrier may continue to pursue independent connectivity projects. The move could reshape partnerships with SpaceX’s Starlink mobile service, AST SpaceMobile (ASTS), Amazon and Globalstar (GSAT). T-Mobile has an exclusive U.S. agreement with SpaceX that is expected to expire in 2026; the service currently costs $10 a month or is included in premium plans. AT&T and Verizon have agreements with AST SpaceMobile, which expects to start commercial service in 2026.