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AT&T rebuked over misleading ad for nonexistent satellite phone calling

ast spacemobile, AT&T, at&t satellite calling, Policy, satellite calling / /

Remember 5GE? —

AT&T reluctantly adds disclaimer: “Satellite calling is not currently available.”

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A gloved hand holds a phone while making a call. The screen shows an AT&T logo and the text,

Enlarge / Screenshot from AT&T commercial featuring Ben Stiller making a satellite call to Jordan Spieth.

AT&T has been told to stop running ads that claim the carrier is already offering cellular coverage from space.

AT&T intends to offer Supplemental Coverage from Space (SCS) and has a deal with AST SpaceMobile, a Starlink competitor that plans a smartphone service from low-Earth-orbit satellites. But AST SpaceMobile’s first batch of five satellites isn’t scheduled to launch until September.

T-Mobile was annoyed by AT&T running an ad indicating that its satellite-to-cellular service was already available, and filed a challenge with the advertising industry’s self-regulatory system run by BBB National Programs. The BBB National Advertising Division (NAD) ruled against AT&T last month and the carrier appealed to the National Advertising Review Board (NARB), which has now also ruled against AT&T.

“It was not disputed that AT&T does not currently offer SCS coverage to its cellular customers… Therefore, the NARB panel recommended that AT&T discontinue the claim that SCS service is presently available to consumers or modify the claim to clearly and conspicuously communicate that SCS is not available at this time,” the NARB said in an announcement yesterday.

AT&T, which is also famous for renaming its 4G service “5GE,” reluctantly agreed to comply with the recommendation and released a new version of the satellite-calling commercial with more specific disclaimers. “AT&T supports NARB’s self-regulatory process and will comply with NARB’s decision… However, we respectfully disagree with NARB’s conclusion recommending that the commercial be discontinued or modified,” AT&T said in its statement on the decision.

The challenged advertisement, titled “Epic Bad Golf Day,” features actor Ben Stiller looking for a golf ball in various remote locations.

“The commercial near the end shows Mr. Stiller having finally caught up with his golf ball in a desert wasteland… He then places a cellular phone call to champion golfer Jordan Spieth, shown standing on a golf green, presumably so that Mr. Spieth can offer golfing advice,” the NARB ruling said. “An image in the commercial shows the call from Mr. Stiller to Mr. Spieth connecting through a satellite relay. Another visual shows Mr. Stiller’s phone stating that it is ‘Making satellite connection.'”

AT&T: Commercial shouldn’t be taken literally

AT&T’s appeal “points to a number of fanciful/ludicrous features of the commercial in Mr. Stiller’s golf ball odyssey to argue that reasonable consumers will not receive a message that satellite service is currently available, but will understand that AT&T is burnishing its brand by pointing to technological features currently under development,” the panel wrote.

T-Mobile countered “that the use of humor does not shield an advertiser from its obligation to ensure that claims are truthful and non-misleading,” and the NARB agreed.

“The panel views the humorous/fanciful nature of Mr. Stiller’s antics as a means of attracting the attention of viewers, but also as a means of emphasizing the utility of SCS technology—allowing for calls to be placed from remote locations not currently accessible to mobile service,” the industry self-regulatory group said. “The humor associated with Mr. Stiller’s golf misadventures does not cancel out the consumer communication that SCS service is currently available. In addition, the panel does not accept AT&T’s argument that the panel’s decision (or NAD’s decision being appealed) will interfere with the use of humor in advertising.”

The ad originally included small text that described the depicted satellite call as a “demonstration of evolving technology.” The text was changed this week to say that “satellite calling is not currently available.”

“Even assuming consumers will read [the disclaimer], one reasonable interpretation of ‘evolving technology’ is that the technology is currently available, albeit expected to improve in the future,” the NARB said.

The original version also had text that said, “the future of help is an AT&T satellite call away.” The NARB concluded that this “statement can be interpreted reasonably as stating that ‘future’ technology has now arrived. The next visual reinforces that message, as it shows Mr. Stiller communicating on a cell phone call while in a remote location, and the accompanying visual states ‘connecting changes everything,’ a message addressing the present, not the future.”

In the updated version of the ad, AT&T changed the text to say that “the future of help will be an AT&T satellite call away.”

AT&T rebuked over misleading ad for nonexistent satellite phone calling Read More »

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Google and AT&T invest in Starlink rival for satellite-to-smartphone service

ast spacemobile, Policy, spacex starlink / /

Satellite for smartphones —

AST SpaceMobile gets $206.5 million and is partnering with Google and AT&T.

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Illustration of a large, square satellite orbiting the Earth.

Enlarge / Illustration of AST SpaceMobile’s cellular satellite.

AST SpaceMobile

Google, AT&T, and Vodafone are investing $206.5 million in AST SpaceMobile, a Starlink competitor that plans to offer smartphone service from low-Earth-orbit satellites.

This is the first investment in AST SpaceMobile from Google and AT&T, while Vodafone had already put money into the satellite company. AST SpaceMobile announced the funding in a press release on Thursday and announced a $100 million public offering of its stock on the same day.

“Vodafone and AT&T have placed purchase orders for network equipment from AST SpaceMobile to support planned commercial service,” the satellite company said. Google has meanwhile “agreed to collaborate on product development, testing, and implementation plans for SpaceMobile network connectivity on Android and related devices.” AST, which has one very large test satellite in orbit, previously received investments from Rakuten, American Tower, and Bell Canada.

SpaceX subsidiary Starlink has deals with T-Mobile in the US and several carriers in other countries for satellite-to-smartphone service. T-Mobile is expected to offer Starlink-enabled text messaging this year, with voice and data service beginning sometime in 2025.

Though AT&T hadn’t previously invested in AST SpaceMobile, the companies were already working together. AT&T is leasing spectrum in the 700 MHz and 850 MHz bands to AST SpaceMobile. They plan “to provide mobile broadband to unserved and underserved areas covered by the Leased Spectrum,” the companies told the Federal Communications Commission in an application last year.

AST SpaceMobile's BlueWalker 3 test satellite, which is 693 square feet in size.

Enlarge / AST SpaceMobile’s BlueWalker 3 test satellite, which is 693 square feet in size.

AST SpaceMobile

For hard-to-reach areas

Satellite-to-smartphone technology is generally seen as a supplement to cellular networks in hard-to-reach areas. “Because AST’s technology can focus satellite coverage in discrete portions of licensed areas, it does not need a nationwide swath of terrestrial mobile spectrum that a mobile network operator licensee has left fallow. Rather than displacing terrestrial network facilities nationwide, AST’s coverage will be complementary to AT&T’s extensive terrestrial network coverage,” the companies’ FCC filing said.

In April 2023, the companies announced that they completed the first two-way voice calls using AST SpaceMobile’s test satellite with standard mobile phones. “The first voice call was made from the Midland, Texas area to Rakuten in Japan over AT&T spectrum using a Samsung Galaxy S22 smartphone,” the announcement said.

In September 2023, AST SpaceMobile said it made “the first-ever 5G connection for voice and data between an everyday, unmodified smartphone and a satellite in space” and that it achieved a download rate of 14Mbps.

Five satellites should launch soon

AST SpaceMobile’s prototype satellite launched from a SpaceX rocket in September 2022. AST’s early plans detailed in 2020 called for 243 satellites overall, and its first five satellites for commercial operations are expected to launch by March 31, 2024. AST is manufacturing the satellites at its Texas facilities.

The prototype satellite delivers data over 5 MHz channels. “For the company’s planned operational satellites, beams are designed to support capacity of up to 40 Mhz, potentially enabling data transmission speeds of up to 120Mbps,” the company said.

An AST description of its satellite says it has “a large surface area of phased-array antennas, which work together to electronically form, steer, and shape wireless communication beams into cells of coverage,” similarly to cell towers on the ground. AST says its BlueWalker 3 test satellite is 693 square feet.

AST said it has “over 40 agreements and understandings with mobile network operators globally, who collectively service over 2 billion subscribers.” Besides Vodafone and AT&T, these “agreements and understandings” are with firms including Rakuten Mobile, Bell Canada, Orange, Telefonica, TIM, MTN, Saudi Telecom Company, Zain KSA, Etisalat, Indosat Ooredoo Hutchison, Telkomsel, Smart Communications, Globe Telecom, Millicom, Smartfren, Telecom Argentina, Telstra, Africell, and Liberty Latin America.

While Starlink already has over 5,000 satellites delivering home Internet service and plans to launch tens of thousands more, it isn’t too far ahead of AST SpaceMobile in terms of cellular-enabled satellites. SpaceX launched the first six Starlink satellites that can provide cellular transmissions to standard LTE phones a few weeks ago and demonstrated the technology with text messages sent between T-Mobile phones.

Google and AT&T invest in Starlink rival for satellite-to-smartphone service Read More »