Elon Musk of SpaceX and Mike Sievert, CEO of T-Mobile US, against a backdrop of rockets recently announced they are joining forces to take wireless to the next level… satellites. They will use Starlink satellites to connect calls, texts and data sessions when the wireless network is not available.
It will begin late next year with text service, and if successful, could be the next, big growth wave in the wireless industry like the iPhone and Android were ten to fifteen years ago.
There are other devices which do something similar. Example, Garmin inReach is one of them. inReach is not a smartphone, but it is a device which communicates with satellites.
Smartphones and wireless service communicating with satellites will improve mobile because it extends the connection to the smartphone where it was lost before.
Ultra-runners need SpaceX Starlink T-Mobile satellite wireless service
However, a near-death experience of a friend of mine shows there is still one weak link to this otherwise strong chain.
Trena Chellino is an avid ultra-runner. She is an athlete who commonly runs 50-100-200-mile marathons and also trains other runners to do the same.
Recently, she was driving her car on an isolated and unstable mountain road, in the middle of the night, with no lights, and no wireless signal. She drove off the road, went over the side, fell into a ravine and totaled her car. She almost lost her life.
The wireless industry likes to tell us their signal covers the vast majority of users. While true, there is still plenty of the country where there is no cell service. No network. Think deserts, mountains and other isolated stretches that cover vast distances.
Trena had no cell coverage. Even the On Star safety service in her car did not work because the car was under buried under trees and could not see the sky to connect with satellites.
Fortunately, she was still able to climb out the back window and crawl up to the road and wait for someone to drive by.
If she had this T-Mobile US/SpaceX/Starlink smartphone, when she climbed out of the wreck and up to the road, and could see the sky, she could have called for help rather than waiting for someone to drive by.
This should mean the difference between waiting for hours for someone to simply drive by, or calling for help right away.
Satellites are the natural, next generation in wireless
This new satellite phone from T-Mobile and SpaceX will work as long as you can see the sky. That means it will work unless you are injured, unconscious or pinned to prevent movement to find a clear view of the sky. Or unless the smartphone is damaged, out of reach or lost.
There are many remote areas around the country where people live and work with spotty wireless service or no service at all. Satellites could cover every inch of the United States with satellite wireless.
Blending traditional wireless service with satellite wireless is an obvious improvement.
This could also allow international travelers the ability to use their smartphones whether they are on a cruise ship in the middle of the ocean or visiting other countries. The only thing that may get in the way are laws and rules in various countries around the world.
Questions around satellite wireless service
As exciting as this is, it also raises many new questions.
Reliability is one. Currently, when a cell tower needs maintenance or an update, it’s relatively easy. But tall ladder trucks are not long enough and even drones do not fly high enough to reach space.
Another issue is satellites and smartphones are not designed to communicate. That is an engineering challenge which will have to be overcome.
Regular, ongoing updates and cybersecurity must also be part of the mix.
What about competition and other wireless carriers? AT&T Mobility and Verizon Wireless are the other two major wireless carriers in the United States, along with many other smaller, regional networks and MVNO resellers. All players will want to and in fact need to offer this same service.
Plus, this T-Mobile, SpaceX announcement was just for the United States. There are also countless wireless carriers in countries around the world who also need this service.
Huge growth opportunity for SpaceX
So, while there are quite a few important questions that still need answers, the bottom line is this is a huge, new growth opportunity for SpaceX and Elon Musk. Not just for T-Mobile. Not just for all the US carriers. But for all US carriers, all carriers, and all wireless customers around the world.
If satellite wireless becomes as important as it could be, T-Mobile will initially have a competitive advantage, for a while at least.
This kind of competitive advantage in wireless only happens from time to time. Then things level out.
Another example is when AT&T had a competitive advantage with the Apple iPhone, when it was first introduced. AT&T had the exclusive for several years before it became available to all competitors.
Satellite coverage, if it works, will be too important to be limited to just one wireless carrier. Therefore, I don’t expect this will be limited just to T-Mobile in the long run.
They are the first, but I believe others will follow as we move forward.
Satellite service will usher in next generation for wireless
There are other questions as well. What about price? To get this satellite enhanced service, how much more will users have to pay?
Will all users pay for this, or only those who choose it?
When will all this become reality? They said to expect the service to be rolled out in stages, starting with texting, late next year in 2023. SpaceX still needs to update their software and capabilities and launch more satellites with new technology.
So, as you can see, there are still loads of questions, and lots of work to do. However, that’s the way innovation works.
Today, one thing is for sure. The marriage of wireless and satellite for communications is a real and obvious need and just may be the next, natural next step in the evolution of wireless.
Satellite wireless service not needed for most users
All that being said, as cool as this sounds, it is not really a must-have for most users. Most never leave their city and always have wireless connectivity anyway. They will not need this service or even be interested in this news, especially if there is an additional cost involved.
The need for this satellite wireless service is, for those in areas without wireless coverage. Or sports enthusiasts who go out in the middle of nowhere. That’s a smaller universe of users.
However, that’s enough to be a competitive advantage and gives marketing bragging rights for every carrier going forward.
So, expect to see a massive marketing, advertising and public relations push around this area, whether you need it or not.
Since the iPhone and Android growth wave has slowed, to continue growth, and to continue rewarding investors, T-Mobile and other carriers will more than likely try and create this satellite service as a must-have service for everyone.
While there are lots of questions, bottom line is, this is the next advancement in the wireless industry.
So, congratulations to Elon Musk, SpaceX and Starlink, and to T-Mobile for being the first to create this next generation of wireless service, first for America and ultimately the world.
This is the next, big step in the wireless revolution that has already transformed our lives and will continue to do so going forward.
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