During a recent internet and telecom conference, Verizon Consumer Group’s Chief Revenue Officer Frank Boulben boasted about having fewer white spots – areas with poor reception – than some of its rivals. He believes that this reduces the need for a complementary solution, but does say that there are some use cases for satellite services. A survey conducted by the company revealed that demand for satellite capabilities is limited.
Verizon has teamed up with Skylo And AST SpaceMobile to bring satellite connectivity to its customers. Like T-Mobile, the company began with satellite messaging but plans to add support for voice and data.
The service is free for now and the company will only start charging for it once it has a “full solution.” This seems to hint that the company wants to iron out any bugs and ensure that the service works as intended before monetizing it.
Since satellite-powered communication is viewed as a complementary service by Verizon, the company doesn’t think it’s a good enough reason for customers to switch providers.
T-Mobile‘s direct-to-cell service is free for all customers until July, but after that, once the public rollout begins, everyone except the customers on its priciest plans will have to pay for it.
Verizon and AT&T customers will be charged $20 a month and since customers provided their contact information to T-Mobile during the sign-up process, the company has an opportunity to pursue them aggressively. When asked if Verizon viewed that as a threat, Boulben said that an “insignificant volume” of its customers have inquired about satellite, meaning interest is rather low. He also believes that the price is a bit high compared to the “low demand” for the service.
Of course, Verizon can’t possibly know how many people have enrolled in T-Mobile‘s direct-to-cell program.
A T-Mobile exec had previously said that the service had tens of thousands of users and customers from rival companies accounted for half the sign-ups.
We don’t know whose word to take. On one side, you have Verizon downplaying the pull of satellite features, even though it has inked a partnership with two companies to beam satellite connectivity to phones. On the other, you have T-Mobile claiming that non-T-Mobile customers have expressed a lot of interest in the service.Either way, it’s comforting to know that if you are in the US, you will not have to worry about not having signals in areas that cannot be reached by land-based networks.
