Telecommunications company T-Mobile (TMUS) and Elon Musk’s privately held SpaceX have been granted a license that enables them to provide internet coverage in remote areas of the U.S.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The Federal Communications Commission (FCC) approved the license for T-Mobile and SpaceX’s Starlink satellite unit. It is the first license authorized for both a satellite operator and a wireless carrier that are collaborating to provide internet coverage from outer space.
T-Mobile said that the partnership with SpaceX will see the two companies extend the reach of wireless networks via satellites to remote areas of America and help to eliminate so called “dead zones” where there’s currently no access to the internet.
A Partnership Forged in Space
T-Mobile has said that more than 500,000 square miles of the U.S. is not connected to the internet because of a lack of reach by cellular towers, land-use restrictions, and other issues. T-Mobile and SpaceX have been working together since 2022 to rectify this problem. In January of this year, the two companies launched their first internet satellites into low-Earth orbit.
The satellites have direct-to-cell technology that works with T-Mobile’s existing network to expand internet coverage. Earlier this year, the FCC established a new regulatory framework for supplemental internet coverage from space. In October, the regulator allowed SpaceX and T-Mobile to enable Starlink satellites to provide coverage for cell phones in areas of North Carolina that were hit by Hurricane Helene.
TMUS stock has risen 56% so far in 2024.
Is TMUS Stock a Buy?
T-Mobile has a consensus Strong Buy rating among 18 Wall Street analysts. That rating is based on 16 Buy and two Hold recommendations made in the last three months. There are no Sell ratings on the stock. The average TMUS price target of $242.33 per share implies 1.82% downside risk from current levels.
