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Satellite: A Venture With Both RivalsNarrow moat

T-Mobile US (TMUS) — moat facet

T-Mobile joined AT&T and Verizon in a satellite joint venture to end dead zones, turning coverage at the edges into a shared cost.

The strangest competitive relationship T-Mobile has is a partnership. On 1 October 2026, "AT&T, T-Mobile and Verizon have entered into a joint venture agreement focused on expanding coverage in underserved areas"1. The venture follows a May announcement that the three would pool limited spectrum resources for satellite coverage2.

T-Mobile cost of services, excluding depreciation ($M)11,655202310,771202411,4972025T-Mobile US Form 10-K FY2025, income statement
Rising again after the Sprint savings.

The three carriers compete on network, and the venture is a statement that coverage in the emptiest places is not worth competing for. Each would have to pay to reach the same remote areas; together they share the cost. Paul Roth, a former AT&T and Cingular executive, will serve as interim CEO3.

T-Mobile already sells a satellite service of its own. The launch of T-Satellite raised cost of services in 20254, which rose to $11,497 million from $10,771 million5. The venture allows existing carrier-satellite agreements to remain in place6, so T-Mobile's own offer continues alongside it.

The cooperation has a cost for T-Mobile's moat. Coverage was part of what T-Mobile sold as its network advantage; a shared venture means that, in the places it reaches, the three networks will offer the same thing.

The venture is run jointly. It will be managed by a board with representatives from each founding member7, and the carriers say it "Will nearly eliminate dead zones in the U.S. currently without mobile service"8. A shared board means no one carrier can use the venture to pull ahead of the others.

The venture is a sensible way to spend less on the hardest coverage. The measure of its effect on T-Mobile is cost of services: growth above service revenue growth for 2026 would mean satellite and other third-party costs were rising faster than the business they support.

Moat trajectory: Holding steady

JV formed 1 October 2026; T-Satellite continues.

The number that tests this moat
Reported
Cost of services, full year
$11,497M (FY2025), against $10,771M in FY2024

What the network, including satellite, costs to run; growth above service revenue growth would mean the edges cost more than they earn.

Source: T-Mobile US Form 10-K, FY2025 ↗
References
  1. ReportedOn 1 October 2026, "AT&T, T-Mobile and Verizon have entered into a joint venture agreement focused on expanding coverage in underserved areas".
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
  2. ReportedThe venture follows a May announcement that the three would pool limited spectrum resources for satellite coverage.
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
  3. ReportedPaul Roth, a former AT&T and Cingular executive, will serve as interim CEO.
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
  4. ReportedThe launch of T-Satellite raised cost of services in 2025, which rose to $11,497 million from $10,771 million.
    T-Mobile US, Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - consolidated financial statements, segment expense table, cash flow and capital returns. — FY2025 · publ. 11 February 2026 · source ↗
  5. ReportedThe launch of T-Satellite raised cost of services in 2025, which rose to $11,497 million from $10,771 million.
    T-Mobile US, Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - consolidated financial statements, segment expense table, cash flow and capital returns. — FY2025 · publ. 11 February 2026 · source ↗
  6. ReportedThe venture allows existing carrier-satellite agreements to remain in place, so T-Mobile's own offer continues alongside it.
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
  7. ReportedIt will be managed by a board with representatives from each founding member, and the carriers say it "Will nearly eliminate dead zones in the U.S. currently without mobile service".
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
  8. ReportedIt will be managed by a board with representatives from each founding member, and the carriers say it "Will nearly eliminate dead zones in the U.S. currently without mobile service".
    Verizon news release, 1 October 2026 - AT&T, T-Mobile and Verizon launch a joint venture to help end coverage dead zones with satellite connectivity; Paul Roth interim CEO. — October 2026 · publ. 1 October 2026 · source ↗
Sources
Generated October 6, 2026