T-Mobile and SpaceX jointly announced Thursday that they are partnering on a satellite to mobile phone service that will function in areas without cell coverage.
In a bid to “end mobile dead zones,” SpaceX founder Elon Musk and U.S wireless carrier T-Mobile CEO Mike Sievert announced plans to launch a new mobile service that will be enabled by Starlink’s second-generation satellites and T-Mobile bandwidth, which will provide mobile users with network access in parts of the United States.
Musk said at his company’s rocket facility in Boca Chica, Texas on Thursday night, that the new plans would remove the need for cell towers and provide service for sending texts and images where cell coverage does not currently exist, which is necessary for emergency situations in remote areas.
Starlink will establish a new network using T-Mobile’s mid-band spectrum. By the end of next year, the beta version of the service, focused initially on messaging, will roll out to most client phones.
Capital Nomura Securities (CNS) strategists said that T-Mobile and SpaceX’s collaboration will boost investor sentiment in Thai telecom companies and aid those firms in building an S-curve of growth, pointing out THCOM as the most attractive telecoms stock.
Because of its specialization in satellite, Thaicom Public Company Limited (SET: THCOM) is expected to see the most positive sentiment, since there are local and global businesses looking to enter the Thai market, and THCOM’s specialization will benefit the company. Strategists recommend a “Speculative-Buy” rating on THCOM.