Starlink satellite antennas are seen at an international trade show in Berlin, August, 2023. Starlink owner SpaceX said in an application to the FCC that its new system will offer a new generation of mobile satellite service connectivity, 'supporting voice, texting, and high speed data.'ODD ANDERSEN/Getty Images
Elon Musk’s Starlink is planning to offer mobile phone services directly to consumers, a step that could one day place added competitive pressure on traditional Canadian carriers.
SpaceX, which owns Starlink, has applied to the U.S. Federal Communications Commission to launch a new constellation of 15,000 low earth orbit satellites to provide “ubiquitous connectivity” through mobile satellite service (MSS) inside the United States and wherever else it is authorized to operate.
As demand for consumer broadband surges, Starlink is one of numerous companies investing in technology to reach consumers directly in areas that are not served by terrestrial networks, such as in remote regions and bodies of water.
The company is requesting authorization to operate in a subset of U.S. and international spectrum bands necessary to provide direct-to-cell service. Starlink currently offers a satellite phone service in Canada through a partnership with Rogers Communications Inc. RCI-B-T and is also proposing to pursue more such arrangements with other telecom providers.
“This new system will offer a new generation of MSS connectivity, supporting voice, texting, and high speed data,” said David Goldman, SpaceX vice-president of satellite policy, in the 15-page application dated Sept. 17.
Mr. Goldman said that allowing SpaceX to do so would result in “dramatic public interest benefits,” by improving cell coverage in rural areas and making use of spectrum bands it claims are “fundamentally underused.”
The U.S. Space Bureau previously dismissed a SpaceX application to use the 2GHz spectrum band, as the spectrum was held exclusively by another company, EchoStar. But in September, SpaceX signed a deal to acquire EchoStar’s spectrum licenses for US$17-billion. The deal saw EchoStar cancel its $2-billion satellite manufacturing contract with Canadian company MDA Space Ltd MDA-T.
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It’s unclear whether Starlink would continue to offer its direct-to-mobile service through Rogers if it receives the approvals it needs to launch the new satellites. However, SpaceX could become a competitor with any Canadian carrier that offers satellite service in the future.
The spectrum that SpaceX acquired from EchoStar will allow it to offer global mobile service, “without relying on the spectrum and customer base” of companies such as T-Mobile in the U.S. and Rogers in Canada, said Jianping Pan, a computer science professor at the University of Victoria studying satellite technology.
Regardless, SpaceX will have to wait until mainstream cellphones support these frequency bands and the new direct-to-cell satellites are in space, which will likely take a few years, he said.
Any new potential service wouldn’t likely have a major competitive impact in cities and other areas with extensive connectivity provided by Canadian carriers, he said, but could play an important role in connecting more remote communities.
Rogers launches direct-to-mobile satellite service for remote areas
In a note to investors, Scotiabank’s Maher Yaghi said he doesn’t believe that satellite technology can currently compete head-on economically with existing terrestrial networks, and that many technological constraints would still need to be resolved for it to be used ubiquitously.
However, by deploying a purpose-built fleet, SpaceX could evolve from simply offering capacity through its cellphone “tower in the sky” to become that of “a partner vying for a revenue split on direct to cell applications where a terrestrial network is not present,” he said in a note to investors on Monday.
He said that SpaceX’s actions during next year’s auction of mostly rural spectrum in Canada will be a test of SpaceX’s international ambitions.
“If SpaceX does in fact buy any of this spectrum it could foretell a more aggressive mobile approach that the company is looking to deploy internationally,” he said.
Editor’s note: A previous version of this article incorrectly stated that Jianping Pan is a computer science professor at Victoria University. Pan is a computer science professor at the University of Victoria.