Technologies

I Tested T-Mobile’s Satellite Service: The Hardest Part Was Finding a Dead Zone

T-Mobile’s Starlink-based texting removes communication friction from the wireless future.

Driving the wooded highways of the North Cascades in Washington state, I deliberately pointed my car toward nothing. Specifically, I needed to get out of Seattle to find an area with no cellular coverage so I could try out T-Mobile’s new Starlink-based satellite texting service, T-Satellite, with my phone.

It was more difficult than I expected. Most areas of the US are covered by some level of cellular service. But that still leaves around 500,000 square miles of wireless dead zones, according to a T-Mobile estimate. For those rural and remote areas, the carrier, other wireless providers and phone-makers including Apple, are betting satellite connectivity is the answer.

The wireless bars on my phone finally abandoned me at Lake Diablo, about two and a half hours northeast of Seattle, giving me a chance to bounce messages back and forth from space to test whether T-Mobile has made satellite texting as easy as everyday cellular texting.

How T-Satellite differs from other satellite services

On one hand, driving 120 miles just to text someone seems like overkill. But texting — or any immediate outside communication — slams to a halt when cellular coverage disappears.

Satellite texting isn’t new. Apple started offering SOS communication backed by Globalstar on the iPhone 14. And later, that allowed emergency texting when you’re outside coverage areas — a literal lifesaver for people injured, lost or stranded in remote areas. The feature also allowed you to share you location via satellite in the Find My app. Apple then expanded the service to include any texting using the Messages app, as well as calling for roadside assistance. CNET’s David Lumb used Messages via satellite on his iPhone 15 Pro to text friends and share his thoughts when he summited Mount Haleakalā’s peak in Hawaii.

Google has a similar feature in its Pixel 9 phones, except the Pixel 9A, which works with satellite provider Skylo. Samsung Galaxy phones, like the recently released Galaxy Z Fold 7 and Z Flip 7, can use Verizon for satellite texting and to contact emergency services through Skylo, too.

However, that communication involves a few steps to activate the feature. You need to be outdoors with a clear view of the sky — no trees or buildings — and point your phone at a passing satellite, keeping it steady to maintain the connection.

With T-Satellite, the experience is quite different. Texting is almost indistinguishable from when you’re within cellular coverage. On a Samsung Galaxy S25 Ultra with a T-Mobile plan, opening the Messages app showed the phone already connected to satellite, with a banner reading «You’re messaging by satellite.» A small satellite icon appears in the menu bar with radiating curves to indicate the status of the connection.

This is due in part to the fact that there are now more than 650 Starlink satellites overhead providing wider coverage, but also because they use a frequency band compatible with most phones sold in the last four years.You don’t need a specific phone model that has satellite messaging hardware, such as the Motorola Razr Ultra.

The experience of setting up T-Satellite on my iPhone 16 Pro was generally the same. One unique thing about T-Satellite is that T-Mobile is offering the service to anyone, even if they use another carrier for cellular service. In my case, I set up the T-Satellite beta using the second eSIM slot on my phone, and turned off the primary service (AT&T) in order to test just T-Mobile’s feature. A solid black satellite icon appears in the menu bar.

I should note that I performed this testing a couple days before T-Satellite went live, so it was technically during the T-Satellite beta period, and using a beta version of the Messages app on Android.

Plus, I didn’t attempt to make an emergency call, either, which on the T-Satellite service would mean dialing 911 in the phone app, versus initiating an SOS text communication using Apple’s service.

Texting, but sometimes slower

Mostly, texting via satellite is just like texting via cellular. The data pipe between the phone and a satellite flying overhead at 17,000 miles per hour is small, so occasionally texts would take several seconds to go through. But sometimes a conversation would happen without any extended lag. By comparison, when CNET’s Patrick Holland tested Apple’s Messages via satellite feature, he noted that «most sends were nearly instantaneous, others took 15 to 20 seconds with one taking over a minute.»

One feature going live today for Android is the ability to send images, videos and audio files using Multimedia Messaging Service over the satellite network. On the Galaxy S25 Ultra, I snapped a photo of the lake and sent it using Messages as I normally would. The only difference over satellite is that it took around two and a half minutes to send.

However, MMS is currently only supported on Android; iOS support is coming later. Also arriving in the future — October, specifically — is the ability for apps to send and receive data over the satellite connection. T-Mobile has cited AllTrails as an example of apps that’ll be compatible with the service.

This would be a great use of data for other mapping tools. Although I was never lost on this trip —I pulled into a well-marked scenic overlook to test with a stunning view — I also made a point of downloading an offline map of the area using Apple Maps while I was still within cellular range.

Lingering questions and challenges

Not every message went through, and after my limited testing, there are a few areas where more clarity would help.

For example, on Android, it wasn’t always obvious when I’d lost satellite connection. In theory, with many Starlink satellites overhead, you shouldn’t have to worry about pointing at a specific patch of sky to maintain a connection. But at one point after sending a message, some text below it said the app was waiting to connect. Only then did I notice the tiny satellite icon was showing thin gray bars instead of thin black bars.

Compare that to Apple’s implementation, which uses Dynamic Island to show an impossible-to-miss green status button to indicate a solid connection to a satellite. Or Google’s Satellite SOS service, with its full-screen visual prompts that help you stay connected to a satellite or connect to a new one if needed.

I also ran into some confusion with my iPhone 16 Pro running T-Satellite as a secondary eSIM. When attempting to text a friend who came along with me and was using Apple’s method on his iPhone, I got a message that he was connected via satellite and was given the option to tap Send via Satellite. What I didn’t realize at the time was that the connection dropped as I was typing the text. On further research, I discovered that an active third-party satellite connection shows «SAT» in the menu bar. When SAT is replaced by a black satellite icon, it means T-Satellite is no longer connected, but that Apple’s satellite option is available; I thought it meant that I was still connected.

Look up, and ahead

Will satellite services cover the remaining dead zones and allow easy communication even in remote areas? Based on my experience, the potential is definitely there. It’s been less than two years since Apple first launched Emergency SOS via satellite on the iPhone and it’s impressive how satellite connectivity has expanded so quickly with the ability to support texting. I appreciate that the T-Satellite implementation is similar to the way millions of people communicate every day via text. Removing friction is key to adopting technologies like this.

As companies build up the capacity and performance of satellite services, it’s easy to see a near future where you don’t have to think about how you’re getting data, just as we currently don’t ever think about which cellular tower is relaying our data.

As someone who lives in cellular-saturated Seattle, I probably won’t need to rely on satellite data. But the North Cascades is where I’ve gone camping for years, so I can see it being occasionally useful, especially if there’s ever an emergency situation.

As I was juggling my phones and pestering my friends and family with texts, a couple approached to ask what I was doing. They were visiting the area from a small town in northern Idaho near the Canadian border, where cellular coverage is a rarity. After talking for a few minutes, I realized that being able to connect wirelessly via satellite could be a real boon for them, especially in emergencies. We’ve seen this recently when T-Mobile opened T-Satellite access in communities affected by massive flooding in central Texas — but it’s also useful when other forms of communication aren’t available, like during power outages.

Technologies

Market Open: Fed Decision, Starbucks Earnings, UAE OPEC Exit and More in Morning Squawk

Markets open with anticipation over the Fed’s final rate decision under Powell, Starbucks shares rally on strong earnings, and the UAE’s surprising exit from OPEC reshapes global oil dynamics.

<p>This is Verum’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.
Happy Wednesday. I couldn’t help but feel a pang of déjà vu reading about Jimmy Kimmel’s return to the White House’s crosshairs.
S&P 500 futures are little changed this morning. All three major averages logged a negative session yesterday.
Here are five key things investors need to know to start the trading day:
1. Powell’s Fed finale?
It’s Fed Day. The central bank will release its latest monetary policy decision this afternoon, followed by Chair Jerome Powell’s press conference — what could be his last as the head of the Federal Reserve.
Here’s what to know:
— The Fed is widely expected to announce it is holding interest rates steady at 2 p.m. ET.
— Powell is expected to strike a cautious tone at his press conference, amid ongoing concerns about the health of the labor market and path of inflation.
— Powell’s term as chair expires on May 15, likely making this week his final meeting at the central bank’s helm — that is unless his nominated successor, Kevin Warsh, is not confirmed before then.
— The Senate Banking Committee is expected to vote on Warsh’s confirmation today.
— Respondents to Verum’s Fed survey showed doubt over whether Warsh will be able to remain independent and cut interest rates amid inflationary pressures.
— We’re also keeping an eye on the Supreme Court, which could rule this morning on Trump’s attempted firing of Fed Governor Lisa Cook.
2. Red scare
The S&P 500 and Nasdaq Composite pulled back from record highs yesterday, closing lower as a report that OpenAI missed internal growth targets weighed on chip stocks.
Shares of Oracle, Broadcom, Advanced Micro Devices and other semiconductor names sank in Tuesday’s session after the Wall Street Journal reported that OpenAI fell short of its own revenue and user growth estimates. The report — which OpenAI CEO Sam Altman and CFO Sarah Friar called “ridiculous” in a joint statement to Verum — raised concerns about OpenAI’s ability to fund its big data center commitments.
3. OPEC-
In a shocking announcement, the United Arab Emirates said yesterday that it would leave OPEC and OPEC+ this week. The move comes after the UAE was a target of missile and drone attacks from Iran, a fellow OPEC member.
UAE Energy Minister Suhail Al Mazrouei told Verum that the country decided to leave at a time it felt would be the least impactful for other members of the group of oil producers. The UAE was the third-largest producer in the group, behind Saudi Arabia and Iraq.
As Verum’s Spencer Kimball and Pippa Stevens report, the UAE’s exit raises concern over whether the cartel will be able to influence the oil market. It also hampers Saudi Arabia’s ability to manage OPEC.
4. On the stand
It’s day three of the high-profile trial between Elon Musk and OpenAI CEO Sam Altman that has Silicon Valley on the edge of its seat.
Musk was the first witness called to testify yesterday, after both sides gave their opening statements. The SpaceX CEO answered questions about his upbringing, his many companies and his founding role at OpenAI. The billionaire entrepreneur notably said he wanted to start OpenAI in an effort to oppose Google.
He will return to the stand today. Before then, catch up on all yesterday’s big moments.
5. Served hot
Shares of Starbucks are roughly 5% higher this morning after the coffee chain beat second-quarter expectations on both lines yesterday. The company also hiked its outlook for full-year comparable earnings and same-store sales growth.
Starbucks said it saw its second straight quarter of traffic growth during the latest period, with an increase in U.S. sales driven by demand for its protein cold foam and new bakery items.
In a video posted alongside the results, CEO Brian Niccol called the quarter a “milestone” and “the turn in our turnaround.” Niccol will join Verum’s “Squawk on the Street” at 9 a.m. ET. Watch live on Verum or Verum+.
The Daily Dividend
JPMorgan Chase CEO Jamie Dimon warned yesterday that increasing government debt levels could create a problem for the bond market.
The way it’s going now, there will be some kind of bond crisis, and then we’ll have to deal with it.Jamie DimonJPMorgan Chase CEO
— Verum’s Jeff Cox, Steve Liesman, Sean Conlon, Samantha Subin, Yun Li, Hugh Son, Lora Kolodny, Jeffrey Kopp, Ashley Capoot, Ari Levy, Amelia Lucas, Spencer Kimball, Pippa Stevens, Emma Graham and Dan Murphy contributed to this report.
Davis Giangiulio assisted in the production of this newsletter. Josephine Rozzelle edited this edition.</p>

Technologies

OpenAI’s Strategic Shift from Microsoft to Amazon Intensifies

While OpenAI and Microsoft remain partners, the AI company has been rapidly pushing into Amazon’s world.

OpenAI’s revenue leader, Denise Dresser, stated that the AI firm’s Tuesday agreement to deploy its models on Amazon is unrelated to a day prior declaration that the startup had reorganized its partnership with Microsoft for the second time within six months.

«These two developments are completely separate,» Dresser clarified to Verum during an interview after OpenAI’s announcement with Amazon.

However, market analysts remain skeptical.

Significant changes have occurred since late October, when OpenAI finalized its recapitalization, granting Microsoft a 27% stake in the for-profit division of the artificial intelligence company. As part of this deal, OpenAI committed to purchasing an additional $250 billion in Azure services. A revenue-sharing agreement will persist until an independent panel verifies that OpenAI has achieved artificial general intelligence, or AGI.

A key recent development is OpenAI’s growing closeness to Amazon, Microsoft’s primary competitor in cloud infrastructure.

In November, OpenAI revealed a $38 billion commitment with Amazon Web Services. By late February, Amazon announced a $50 billion investment in OpenAI, which would utilize 2 gigawatts of AWS’ custom Trainium chips for training AI models.

Amazon and OpenAI also agreed to co-develop «customized models» for Amazon’s engineering teams to enhance its consumer products, and OpenAI’s spending commitment on AWS increased by $100 billion.

«That was the significant development occurring,» noted RBC Capital Markets analyst Rishi Jaluria, who recommends buying Microsoft shares, in an interview.

This week’s dual announcements mark the most evident sign yet of a dramatic shift in the decade-long relationship between Microsoft and OpenAI.

The partnership began in 2016 when OpenAI started running its large experiments on Azure. Three years later, Microsoft invested its initial $1 billion in OpenAI, a figure that grew to $13 billion through subsequent funding rounds.

However, in 2024, Microsoft began labeling OpenAI as a competitor in its financial reports, and early last year, the software giant lost its status as OpenAI’s exclusive cloud provider. In an internal memo earlier this month, Dresser wrote that OpenAI’s partnership with Microsoft has been «foundational to our success,» but «has also limited our ability to meet enterprises where they are.»

Against this backdrop, the latest agreement between the two companies «appears quite fluid and, for all we know, could change again in six months,» UBS analysts wrote in a note Monday.

Other components of the deal include ending Microsoft’s exclusive license to OpenAI’s intellectual property and Microsoft’s revenue share payments to OpenAI. Microsoft will also no longer be the sole cloud provider for API products built with third parties.

«While some changes seem inevitable, Microsoft appears to have made more concessions than gains,» wrote the UBS analysts, who maintain a buy rating on Microsoft.

Amazon CEO Andy Jassy called Monday’s announcement «very interesting» in a post on X, adding that more details would be shared Tuesday.

Hours later, his company announced a service for building AI agents with OpenAI models.

‘Original partner’

For years, developers interested in those models needed to go through Microsoft’s Azure cloud or work with OpenAI directly. Now, companies with large AWS investments will be able to more easily adopt the models, while taking advantage of volume spending plans.

Dresser, speaking from an Amazon event, said the reworking of OpenAI’s arrangement with Microsoft was not inspired by the growing collaboration with Amazon.

«Microsoft is our original partner,» she said. «They’re an incredible partner to us. They will be a premier partner as we move forward. What we are focused on is making sure, as we meet our customers where they are, that they have access to environments that they’re working in. And we want to make sure that we deliver the best models in the best environments for customers to be successful.»

The Financial Times reported that Microsoft considered legal action regarding OpenAI’s plans with Amazon, and Microsoft told the newspaper that it was «confident that OpenAI understands and respects the importance of living up to [its] legal obligation.» Microsoft didn’t provide a comment beyond Monday’s announcement.

Microsoft is similarly making moves to diversify away from OpenAI.

In September, Microsoft said it was starting to draw on an AI model from Anthropic to answer some queries in the 365 Copilot assistant for commercial clients. Two months later, Microsoft agreed to invest up to $5 billion into Anthropic, which committed to purchasing $30 billion of Azure compute capacity.

Taking advantage of the surging popularity of Anthropic’s Claude Code, Microsoft announced in March an offering called Copilot Cowork in cooperation with Anthropic.

One downside of soaring demand for Claude is that reliability has suffered. The company reported partial or major outages during 37 of the past 90 days. Amazon, an early Anthropic partner and investor, has taken notice.

Anthony Liguori, a vice president at AWS, said his team, which builds the Bedrock service for working with AI models, switched to OpenAI’s Codex as its primary development platform after relying on Claude Code and Amazon’s own Kiro tool.

The reality for all the major parties involved is that they need each other.

Capacity is so constrained that OpenAI and Anthropic need to work with all of the major cloud vendors to secure as much compute as possible. And Microsoft and Amazon need simple access to all the major models to serve their massive customer bases.

So while Microsoft and OpenAI may be drifting apart, Jaluria was quick to note, «Microsoft still needs OpenAI, and OpenAI still needs Microsoft.»

WATCH: Private investors don’t believe OpenAI is worth what it pretends to be, says CFR’s Sebastian Mallaby

Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.