The deal with AT&T will turn every phone into a satellite phone

AT&T subscribers will soon have the option to ensure they have access to cell service even in typical dead zones, such as deep in national parks or remote rural areas. The mobile operator has been working with AST SpaceMobile since 2018 under a memorandum of understanding, helping the latter to test two-way audio, text and video calls via satellites in space using ordinary smartphones. The companies have now reached a definitive commercial agreement, which means AT&T is moving closer to offering subscribers the ability to transform their regular phones into legitimate satellite devices.

Phones need to be close enough to cell towers to get any service. That’s why people usually can’t call or even text their families when they’re in the woods or mountains. AT&T’s satellite-to-phone service will use satellites as cell towers, and because they are placed in orbit, they can provide connectivity even in remote areas.

The companies reached an agreement just in time for a rocket launch this summer that will carry five commercial AST satellites into space. These satellites will allow AT&T to roll out its service and are just the first in the company’s planned constellation. Unfortunately, AT&T has yet to reveal a specific release date for the service, and it’s also unclear whether it will charge extra for the feature.

Last year, AT&T wrote to the FCC to raise concerns about similar satellite-to-phone technology that T-Mobile and SpaceX’s Starlink are working on. The two companies formed an alliance in 2022, promising to provide consumers with a service they can access even if they are in the middle of the ocean. SpaceX launched the first Starlink satellites with direct service capability in January 2024, and the companies sent and received the first text messages via T-Mobile using the satellites a week later. The carrier said it plans to offer satellite text messaging to the public sometime this year.