AT&T says satellite targets the rural 1% of coverage gaps

AT&T CFO Pascal Desroches said in June 2026 that direct-to-device satellite is intended to fill the rural 1% of coverage gaps rather than replace terrestrial mobile networks.

AT&T CFO Pascal Desroches said direct-to-device satellite will serve as a complement to terrestrial mobile coverage. He said the role of satellite is to address the rural 1% where traditional network buildouts are less practical, not to erode the economics of the core telecom business.

The comments were reported by RCR Wireless on 9 June 2026. The report said Desroches outlined AT&T’s satellite position days before Starlink’s parent company was heading to the public market, and that AT&T’s message focused on using satellite to extend coverage rather than shift traffic away from existing mobile infrastructure.

Direct-to-device satellite refers to satellite connectivity that links directly to consumer phones without a separate satellite terminal. In AT&T’s framing, the technology is positioned as a coverage extension for areas beyond the reach of terrestrial cellular networks, especially in rural locations.