Canada’s Rogers Communications (RCI) is breaking into the U.S. market through a new partnership with American telecommunications giant T-Mobile (TMUS).
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Trade ASTS with leverageThe deal enables Rogers to expand its satellite-to-mobile coverage south of the border. Going forward, Rogers customers will be able to use satellite technologies to make app-based voice calls, send text messages, or use certain applications while roaming in the U.S. and out of range of a cellular network.
Rogers says T-Satellite, the satellite-to-mobile service launched by T-Mobile last summer, covers 1.3 million square kilometers in the U.S. Like Rogers Satellite, the technology relies on Elon Musk’s Starlink low-earth orbit satellites to connect cell phones in dead zones.
The Growth of Satellite Services
Rogers’ offering currently supports text messaging, including to 911 and public safety alerts, along with apps such as WhatsApp, Messenger, X, and AccuWeather. For Rogers customers, satellite-to-mobile roaming in the U.S. will now be included with its plans that provide U.S. coverage.
Rogers is trying to gain greater access to the U.S. market as domestic rivals such as Telus Corp. (TU) and Bell Canada (BCE) plan to bring their own satellite-powered services to customers later this year through partnerships with U.S.-based AST SpaceMobile (ASTS).
Is TMUS Stock a Buy?
The stock of T-Mobile has a consensus Strong Buy rating among 17 Wall Street analysts. That rating is based on 14 Buy and three Hold recommendations issued in the last three months. The average TMUS price target of $259.69 implies 32% upside from current levels.
