Dean Drobot, X Alarm bells ring at Verizon, T-Mobile, and AT&T: they must step up immediately
The three major operators must get their act together immediately if they do not want this competitor to close the gap on them
The telecommunications market in the United States is experiencing an unexpected shift. While Verizon, T-Mobile, and AT&T have maintained a comfortable dominant position, a new player has burst onto the scene with force. In addition, it has caused a true earthquake in the industry.
The move comes from the alliance between EchoStar and SpaceX, which promises to redefine the rules of the game and change the balance of power. The deal, valued at about $17 billion (17.000 millones de dólares), involved the sale of AWS-4 and H-block spectrum licenses by EchoStar to SpaceX. However, this agreement goes far beyond a simple asset transfer.
It also includes a significant assumption of debt by SpaceX, close to $2 billion (2.000 millones de dólares). Without a doubt, it will strengthen EchoStar's financial position.
The problem faced by Verizon, AT&T, and T-Mobile
SpaceX obtains key spectrum to compete on equal terms with major operators like Verizon, T-Mobile, and AT&T. However, with a unique advantage: its focus on satellite connectivity. This feature could shape the future of the sector, especially in rural or hard-to-reach areas where traditional mobile networks do not reach.
In addition, this move is accompanied by a commercial agreement that has not gone unnoticed. Boost Mobile users (owned by EchoStar) will be able to access Starlink's direct-to-device (D2D) service. This technology allows mobile phones to connect directly to satellites, without the need for towers or terrestrial infrastructure.
The system, which operates through a cloud-based 5G core, eliminates dead coverage zones. It offers a new way to understand mobile connectivity.
This innovation makes Boost Mobile the first U.S. operator to use this technology natively. This could mark the beginning of a new era for mobile telephony in the country. Meanwhile, EchoStar keeps other services like Dish TV, Sling, or Hughes intact, which will not be affected by this deal.
Changes are coming in the sector
The impact of the agreement has quickly been felt in the markets. EchoStar's shares rose by almost 20%, while Verizon, T-Mobile, and AT&T recorded drops of around 2% and 3%. It's no wonder.
SpaceX, with its satellite capacity and now with its own spectrum, positions itself as a new major competitor. Above all, because of its potential to change prices, coverage, and alliances in the sector.
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