FCC permits Starlink to operate direct-to-cell service with T-Mobile

Investing.com -- The U.S. Federal Communications Commission ( FCC (BME:FCC)) has granted permission to Starlink, a subsidiary of SpaceX, to operate a direct-to-cell service with T-Mobile at increased power levels, disregarding opposition from competing firms. AT&T (NYSE: NYSE:T) and Verizon (NYSE:VZ) had opposed the power increase, citing potential harmful interference and impact on their service in some regions. However, the FCC has approved the waiver for higher power levels, contingent on measures to safeguard terrestrial wireless carrier operations.

Elon Musk, the billionaire CEO of Tesla (NASDAQ:TSLA), SpaceX, and social media platform X, is spearheading the project. Musk, who has contributed heavily to President Donald Trump’s campaign, is also managing Trump’s Department of Government Efficiency.

In the words of FCC Chair Brendan Carr, this decision will enable the delivery of "faster, more reliable and innovative new services for consumers across the country." The FCC has mandated that Starlink must address any harmful interference if it arises.

In November, the FCC had granted a license to Starlink and T-Mobile to offer supplemental coverage from space, aiming to extend internet access to remote areas and eliminate connectivity "dead zones." T-Mobile Starlink’s service, which was in public beta testing last month, utilizes specially configured satellites with Direct-to-Cell capabilities to transmit cell phone signals to places traditional cell towers cannot reach.

T-Mobile has pointed out that about 500,000 square miles of the U.S. are unreachable by towers due to factors such as terrain and land-use restrictions. T-Mobile Starlink also broadcasts Wireless Emergency Alerts nationwide to anyone within signal range and with a compatible device.

The decision in November marked the first instance of the FCC authorizing a satellite operator to work with a wireless carrier to provide supplemental telecommunications coverage from space on certain flexible-use spectrum bands assigned to terrestrial service.

T-Mobile and SpaceX announced a partnership in 2022, and in January 2024, the first batch of satellites supporting the partnership was launched into low-Earth orbit with SpaceX’s Falcon 9 rocket. In March 2024, the FCC set up a new regulatory framework for supplemental coverage from space, aimed at extending the reach of wireless networks to remote areas while maintaining high service quality in 4G and 5G networks and preventing harmful interference.

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