- AT&T is pushing ahead with AST SpaceMobile’s direct-to-device plans while backing the JV with T-Mobile and Verizon
- CEO John Stankey said the carriers want a unified spectrum approach and a stronger wholesale satellite market
- AT&T expects DoJ scrutiny of the JV, with Stankey saying a longer regulatory review is more likely than a quick signoff
AT&T CEO John Stankey gave a shoutout to AST SpaceMobile when he was asked about the new direct-to-device (D2D) joint venture that he and rivals T-Mobile and Verizon announced last week.
AT&T, which has been working with AST SpaceMobile for years to bring a D2D service to market, will forge ahead with that product while the JV gets processed.
“We've had a great relationship with AST SpaceMobile. The technology and the approach that they're using is unique for direct-to-device,” he said Tuesday at the J.P. Morgan investor conference. “We're still going to be pushing ahead to bring that product out to market … We're really excited about what the second half of this year holds as a result of it.”
Stankey was the last of the three operator CEOs to be asked about their new JV at the J.P. Morgan conference. Verizon CEO Dan Schulman and T-Mobile President and CEO Srini Gopalan both stressed the complementary nature of D2D to terrestrial wireless and Stankey echoed that sentiment.
AT&T and Verizon are invested in AST SpaceMobile for their D2D services while T-Mobile has been offering T-Satellite with Starlink commercially for almost a year. AST SpaceMobile suffered a setback in April when one of its satellites launched in the wrong orbit, but says it remains on track to get 45 satellites in orbit by the end of 2026.
AT&T CEO on definitive agreement
Details of how the JV is going to work are still scant, but Stankey said a definitive agreement will be “pretty straightforward.” The three CEOs put together a comprehensive term sheet and “I don’t expect the definitive agreement is going to be a problem.”
Stankey said the telco executives are all highly motivated and the “dynamics in the spectrum market” are occurring such where the JV needs to be in place. The carriers have not disclosed what spectrum they’re considering to be part of this JV.
“It doesn't make sense for all of us to be lobbying for different priorities on the handset deck for spectrum capabilities,” he said. “If we get bifurcation on that, that's not going to be good for any of us.”
One of the fundamental things they want from the JV is to make sure there’s a robust wholesale market in satellite, which means multiple constellations to buy from. That helps from a pricing perspective and speaks to the dominance of Starlink, which is far ahead of rivals like AST SpaceMobile and Amazon Leo in the D2D space.
Regulatory outlook
The regulatory process remains to be seen, as some analysts called the JV out for possibly raising collusion concerns at the Department of Justice just before SpaceX prepares to go public with its IPO.
“It’s too early to tell after we file as to whether or not we’ll be in the second request land with the DoJ,” Stankey said. “I expect that will probably be the case.”