The wireless industry is about to take the next big leap into the future with satellite connectivity. In the early days it was analog and voice. Then it changed to digital with 2G, 3G, 4G and now 5G bringing a wave of new apps and features to the smartphone. Now, it looks like connected satellite service could be the next big step in the wireless industry. Let’s take a closer look at its chances of success and what this means to investors, customers, smartphone makers, wireless networks and satellite companies.
In recent weeks, we have heard two big announcements in this area from T-Mobile US, SpaceX, Starlink and Apple. I believe this is the beginning of a new wave of innovation and other companies will jump in as well.
Smartphone and tablet makers and wireless networks will be begin offering satellite service when the user is out of the wireless network and where there is no Wi-Fi.
The good news is it improves the wireless experience and adds more protection and safety to the user. The bad news: it may come at an additional cost to the user. This part will be ironed out in coming years as different strategies are tried.
Apple iPhone, SpaceX, Starlink, T-Mobile satellite connectivity
Expect a big, new wave of satellite announcements to continue as other companies will start to market and advertise this service as well.
That includes all the major wireless networks including Verizon Wireless, T-Mobile US and AT&T Mobility. Plus, many MVNO resellers like Xfinity Mobile, Spectrum Mobile, Optimum Mobile, PureTalk, Cricket, Tracfone and others. Plus, smartphone and tablet makers like Apple, Android, Samsung and others.
Currently the smartphone adoption wave has slowed. That’s why I believe satellites may be the next big deal with regards to advertising and marketing.
Remember, only some new features are important to the entire industry. Example, the folding screen smartphone is popular, but only among a smaller group of users. Touch screen laptops are another example.
Satellite wireless will be marketed, but will it be popular?
It may be the same with satellite service. Popular among a smaller group of users.
Through marketing, competitors will make this advancement sound important for every user. And while it is always good to have connectivity, especially when you are in a network dead spot, I don’t think satellite service will be important to the vast majority of users.
We will see how well the new Apple iPhone 14 sells and what users think about this satellite service in coming months. Then we will see how T-Mobile does starting late next year.
It will start with early adopters who need it, then because of marketing it will spread to others who don’t need it but want it.
Verizon, T-Mobile, AT&T will offer Apple satellite connectivity
Today, most users are happy with what they have. They don’t think about being out of network coverage, even though city dwellers also deal with plenty of areas where there is weak or even no signal.
Remember, satellite service will not let the user operate the smartphone as usual. It is only a way to call out for help if there is no signal. It will not let you do anything else.
This will be important enough for a smaller percentage of users. That includes early adopters and those who are out of the network for sports, recreation, work, etc.
Some examples include ultra-runners, athletes who race in the mountains and parts of the country with little or no wireless service. When they are running and get lost or injured, they need connectivity.
Another example are campers, who are often out of cellphone range. Or hikers, fisherman or countless other people who live in the middle of nowhere and have little or no wireless connectivity.
Xfinity Mobile, Spectrum Mobile, Optimum may offer satellite as well
There is a real market for satellite service, and this is a great next step in the evolution of wireless. It’s just that this is not necessary for the average user.
That won’t stop the wireless industry. They will continue to advertise and market this service and create a need.
Cost is a factor. If there is no additional charge for satellite connectivity, most users will opt for it. However, I cannot imagine this costly addition will be free to the user in the long term.
During the Apple iPhone 14 introduction, they said satellite service would be no charge for the first two years if I recall. That’s good. It will give extra connectivity to the user.
What happens next? It depends on Apple and the wireless carrier you use. When charges are added, that may slow interest to those who really need it.
Will users become dependent on satellite wireless service?
There are still many questions we have on this new sector. Apple believes users will love it. That’s why they are offering it. SpaceX and T-Mobile are also convinced users will love it and become dependent on it.
All I am sure about at this early stage is certain users will love it. We will just have to wait and see what happens next.
Satellite service may be like the safety belts we all wear when driving. When introduced, people did not like them. Today, they won’t drive without them.
That may be what happens with satellite service. We’ll see. This is a new space, and it looks like every carrier and smartphone maker will jump in over the next few years. And as each year passes, the service will get better.
The good news is this is an innovative new safety service that will be welcomed by the marketplace. Satellite connected wireless will take the always-on-connectivity to the next level.
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