T-Mobile satellite usage trails forecast in strong Q1

T-Mobile reports strong Q1 while T-Satellite D2D usage remains below expectations across coverage gaps.

•CEO upgrades full-year guidance as T-Satellite D2D usage trails forecast
•T-Satellite D2D provides fallback connectivity in dead zones beyond terrestrial coverage

The fact

T-Mobile US reported a strong first quarter alongside an upgraded full-year outlook. During the earnings call, CEO Srini Gopalan said T-Satellite direct-to-device service is seeing lower-than-expected usage roughly one year after launch, with most activity concentrated in national parks and areas without terrestrial mobile coverage. Developed with SpaceX, the service is designed to eliminate mobile "dead zones". Industry data puts direct-to-device satellite pricing at around $10 a month in mature markets such as the US and Canada.

The assessment

The usage profile indicates that T-Satellite D2D operates as a non-core network layer, confined to providing connectivity where terrestrial coverage is absent. This places the service in a structural support role rather than a primary access mechanism.