T-Mobile (TMUS) has been granted a license that enables the telecommunications company to provide internet coverage in remote areas of the U.S.
T-Mobile is partnering with Elon Musk’s privately held SpaceX to offer internet service via satellites that orbit the Earth.
The Federal Communications Commission (FCC) approved the license for T-Mobile and SpaceX’s Starlink satellite unit.
T-Mobile said that the partnership with SpaceX will allow it to extend the reach of its wireless network and eliminate “dead zones” where there’s currently no access to the internet.
According to T-Mobile, there’s more than 500,000 square miles in America that is not connected to the internet because of a lack of reach by cellular towers and land-use restrictions.
T-Mobile and SpaceX have been working together since 2022 to resolve this problem. Earlier this year, the two companies launched their first internet satellites into low-Earth orbit.
The satellites connect to T-Mobile’s existing network and expand its internet coverage. Earlier this year, the FCC established a new regulatory framework for internet coverage from space.
The stock of T-Mobile has risen 52% so far in 2024 and currently trades at $246.20 U.S. per share.
