T-Mobile CEO Rejects SpaceX Mobile Virtual Network Proposal

T-Mobile CEO Srini Gopalan rejected a proposed Mobile Virtual Network Operator (MVNO) arrangement with SpaceX during a Wednesday earnings call. Gopalan characterized satellite connectivity as an "inferior version" of Fixed Wireless Access (FWA) and argued that the partnership offers no incremental total addressable market for T-Mobile, especially given the company's growth focus in dense urban areas where satellite coverage is limited.

While T-Mobile continues to provide T-Satellite powered by SpaceX, Gopalan noted that the service accounts for only 0.0002 percent of total network usage. He stated that he does not see synergy between FWA and satellite services.

Following similar refusals from AT&T and Verizon, SpaceX is pursuing independent strategies to build its cellular network. These efforts include leasing roughly 80,000 cell tower sites for an estimated $6 billion and utilizing FCC approval for 15,000 Gen2 satellites that connect directly to smartphones. SpaceX is also exploring the use of low-power femtocell base stations on existing Starlink dishes.