T-Mobile US, Verizon and AT&T sealed their joint venture (JV) to expand coverage across areas of the US that terrestrial services cannot reach, in a rare example of cooperation between the big three.

The move followed an announcement in May outlining how the operators planned to pool their spectrum resources to eliminate “dead zones” by expanding satellite coverage for customers nationwide.

Former AT&T, Cingular Wireless and Ameritech executive Paul Roth is serving as the interim CEO of the JV while a search for a permanent chief is underway. The entity will be managed by a board with representatives from each founding member.

The companies stated the JV will “nearly eliminate dead zones in the U.S. currently without mobile service, reaching previously unserved areas” to cut down on coverage gaps.

It will also be beneficial for first responders during natural disasters or other disruptions by providing connectivity when terrestrial services are down.

They claim the new service will also provide a better customer experience for direct-to-device (D2D) consumer services through the unified approach.

T-Mobile notably has launched a commercial D2D service in collaboration with SpaceX, while Verizon has rolled out a satellite messaging service with Skylo Technologies. Verizon and AT&T are also separately working with AST SpaceMobile.

AT&T Business has a partnership in place with Jeff Bezos’ Amazon Leo to provide connectivity to businesses across the US. SpaceX is also mulling a mobile service through its Starlink birds, but the industry is somewhat sceptical of its approach.

The operators stated the venture will also be a boon to additional satellite providers while also collaborating closely with rural mobile operators to expand access and simplify integration.

The service could emerge as a threat to cable operators such as Cox Communications, formerly Charter Communications, Comcast and smaller providers across rural areas which are currently losing broadband subscribers to fixed wireless access services offered by the trio.

The combined use of each operator’s spectrum will improve efficiency while enabling mobile operators to deploy new services at a faster rate.

The JV also plans to take a standards-based approach to satellite services while allowing each of the three to continue their individual efforts across the sector.

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Verizon took its board to 10 members with the appointment of private equity guru Charles Phillips (pictured), a move framed as being about his financial leadership at a time when some shareholders are concerned about the operator’s management structure.

Phillips is co-founder and managing partner of technology company-focused private equity outfit Recognise Partners. Among past experiences are top-line roles with enterprise resource planning company Infor, Oracle and Morgan Stanley.

Verizon CEO Dan Schulman lauded Phillips’ “distinctive experience in technology, financial and regulatory environments”, comments hinting at why the operator was keen to have him on board.

The boss hopes Phillips will help Verizon to “innovate faster” by focusing on customer service.

Schulman also said he hopes the latest board member would help the operator “drive sustainable, long-term value for our shareholders”, something foremost in the minds of some shareholders which are keen for policies to be set governing Verizon’s management structure.

Pressure
The US National Legal and Policy Centre (NLPC) used Verizon’s AGM earlier this year to call for a current separation in the roles of CEO and chair to be formalised, with the latter post to be held by an independent director.

It expressed concern over Schulman’s competence, asserting he “presided over catastrophic value destruction” and politicised business decisions while CEO of PayPal.

The NLPC argued Verizon stock performed below par under previous CEO Hans Vestberg, who was concurrently chair “for most of his tenure”.

Verizon is keeping the posts separate for now, with Mark Bertolini chairing.

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