T-Mobile CEO doesn't want Starlink as an MVNO

The T-Mobile/SpaceX collaboration has been up and running for quite some time now, but the Magenta carrier doesn't have any plans about starting an MVNO partnership.

That's what T-Mobile's CEO Srini Gopalan has stated loud and clear. Although Gopalan himself is beyond impressed with the Starlink direct-to-cell capabilities.

But why not?

T-Mobile's CEO made the statements at the Morgan Stanley Technology, Media and Telecom Conference after he was asked about T-Mobile's plans about an eventual MVNO collab with Starlink.



But he is amazed with what's possible today, noting that nobody could've predicted just five years ago that today, we'd take advantage of "flying towers" which "actually communicate with a moving wireless device".

The way he sees T-Mobile's and Starlink's partnership is as a way to end dead zones in rural parts of the US and that the direct-to-cell service is "far more complementary than it is substitutional" because of physical and economical aspects. Probably because satellites today just can't offer enough capacity to serve dense urban areas or indoor environments.

T-Mobile's CEO also talked about how customers are reacting to the satellite features so far. According to him, many people see the emergency satellite texting option as a kind of safety backup. Even if they rarely use it, customers like knowing it is available in places with no traditional network coverage.

Starlink is getting it on

Meanwhile, analysts say Starlink is moving extremely quickly. Researchers point out that only six months have passed since Starlink agreed to pay about $17 billion to EchoStar for access to additional spectrum. Despite the short time frame, the company is already using that spectrum to strengthen its direct-to-cell satellite network.

However, this shift could have downsides for parts of the telecom industry. Tower companies, for example, might face weaker demand in rural regions if satellite networks start replacing some traditional coverage.

So, are the major US wireless carriers likely to allow Starlink to operate as an MVNO on their networks? Probably not. From a strategic standpoint, helping a powerful satellite provider enter the mobile market could create a strong new competitor, which is something most operators would prefer to avoid.

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