Rethinking Telecommunications with Satellite-Cellphone Connectivity

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Elon Musk’s SpaceX has announced the launch of several Starlink satellites into Earth’s orbit, which will enable direct-to-cell connectivity for users anywhere on the planet. With these recent launches, Starlink has completed the constellation’s first orbital shell.

To make it possible, the satellites of Starlink are packed with advanced software algorithms, phased array antennas, and custom silicon to overcome the challenges with satellite networks. The advanced eNodeB modem onboard these satellites acts like your usual mobile tower but in space, enabling network integration similar to a standard roaming partner.

This isn’t the first time Starlink has achieved this feat; the initial batch of six satellites was launched for testing earlier this year.

The satellites were launched with SpaceX’s reusable Falcon 9 rocket, which is built for the purpose of transporting payloads as well as people into Earth orbit and beyond safely and reliably. 

Described as “the world’s first orbital class reusable rocket,” the reusability of the Falcon 9 enables the space technology company to refly the most expensive parts of the rocket, hence bringing down the cost of accessing space. So far, as per SpaceX’s website, Falcon 9 has had 407 total launches and 336 total reflights. 

While Direct to Cell satellites are currently being launched on SpaceX’s Falcon 9 rocket, they will later move on to Starship. 

These latest launches were made last week in two different batches. The first one took place on December 5 at 10 PM EST from California’s Vandenberg Space Force Base. The same day, the company confirmed the deployment, stating:

“On orbit, the 13 Direct to Cell satellites will immediately connect over laser backhaul to the Starlink constellation, eliminating dead zones and providing peace of mind when customers need it most.”

Then, over the weekend, on December 8, Falcon 9 launched yet another 23 Starlink satellites to orbit from Florida’s Cape Canaveral Space Force Station, 13 of which have Direct to Cell capabilities.

With these batches of broadband satellites, SpaceX is building out the largest-ever network of satellites: the Starlink mega constellation.

All these satellites are deployed in low Earth orbit (LEO), which currently houses more than 6,800 operational Starlink spacecraft. Approximately 350 of these spacecraft are capable of beaming service directly to phones.

SpaceX founder Musk took to X to share that with the Starlink satellite direct-to-cell phone constellation, which is now complete, they will now “enable unmodified cellphones to have Internet connectivity in remote areas.”

For now, though, the bandwidth per beam is a mere ~10Mb. However, this is just the beginning, as Musk noted:

“Future constellations will be much more capable.”

Back in January, the tech billionaire had shared the same thoughts when he noted that the constellation is a “great solution for locations with no cellular connectivity.” At the same time, he noted that they are in no way competitive with the existing cellular networks.

There is a small increase in bandwidth, though, as earlier this year, during the initial test, the satellites only managed a bandwidth of 7 Mb, and the current one is around 10 Mb.

With this, the company is progressing nicely towards its goal, which, as per the Starlink website, is to seamlessly access text for LTE phones across the globe in 2024 while support for voice and data along with the ability to connect IoT devices like smart gadgets will come next year. 

While the cost of the service is not yet known, the proceeds will be used to fund SpaceX’s Mars mission. The Mars colonization program, also referred to as Occupy Mars, aims to make humanity multi-planetary. Musk recently shared his ambition to send crews to the ‘Red Planet’ as soon as 2028.

Click here to learn all about investing in Musk’s endeavours.

Ubiquitous Connectivity: A Leap in Telecommunications

Originally proposed a couple of years ago, the direct-to-cell program received regulatory approval in the US just last month. However, Starlink successfully sent and received the first text messages using the T-Mobile network spectrum through its Direct Cell satellites on January 8.

The idea with Direct to Cell capabilities is to allow people to access texting, calling, and browsing from anywhere on Earth, no matter the physical location of an individual, be it land, lakes, or coastal waters. 

While attempts have been made at providing satellite-to-phone service previously, this new venture stands out for removing the need to have a special handset or even a specific app to get access anywhere in the world.

This is because Starlink utilizes the standard LTE (Long Term Evolution), which is a wireless data transmission standard, also known as 4G LTE, that provides faster speeds for mobile internet. Given that most phones are compatible with this protocol, Starlink is able to offer its services on regular phones. Each of Starlink’s satellites has an LTE modem on board.

Another big point working in Starlink’s favor is its multiple partnerships with popular mobile operators. This includes T-Mobile (TMUS +1.94%) in the US, One in New Zealand, Optus in Australia, Rogers (RCI -0.19%) in Canada, Salt in Switzerland, KDDI in Japan, and Entel in Chile & Peru. 

The SpaceX division has also devised a system to make its service work seamlessly with your phone when it’s connecting to satellites above the Earth’s surface. Moreover, to offer reliable connectivity, Starlink has worked out different parameters, including latency constraints, ideal altitudes, and elevation angles.

Then, Starlink’s satellites are plugged into the massive constellation of spacecraft through a laser backhaul. Here, data is transmitted between satellites through laser-based optical communication systems, which take advantage of lasers over conventional radio frequency communications. This allows data rates to be as much as 100 times faster while offering increased bandwidth and improved security.

High-speed internet Anywhere in the World?

Starlink is not the only player in the field, though; its rivals include Lynk Global and AST SpaceMobile.

Lynk is a satellite-direct-to-mobile-phone (Sat2Phone) telecom company that, much like Musk’s Starlink, aims to provide global mobile phone service coverage. Lynk also has satellites in orbit that act as “cell towers in space” that connect regular phones to low-orbiting satellites. 

In March, the company announced the successful deployment of two more “cell-towers-in-space,” which were launched on a SpaceX mission.

Currently, Lynk allows its paid users to send and receive texts to and from space through regular mobile phones, and it plans to launch voice and mobile broadband services in the future. It has secured regulatory approvals in at least 30 countries and has 40 plus mobile network operator partners. 

In May this year, Lynk signed a contract with the US government to provide its services to the US Department of Defense (DoD), the Department of Homeland Security (DHS), and other US government agencies, which have been field-testing Lynk’s technology for several years. As per the contract, the US government agencies will commercially purchase sat2phone services for the next 5 years, with the option of extending the service for another 5 years. 

Meanwhile, AST SpaceMobile is building a space-based cellular broadband network that is accessible by standard smartphones without having to make any modifications to a device. The network provides connectivity at 4G/5G speeds everywhere on the planet. 

It has partnered with more than 40 mobile network operators, such as Vodafone, Verizon, AT&T, Telefonica, and Rakuten Mobile, which boasts over 2.5 billion users in total. AST SpaceMobile also has commercial satellites in orbit and contracts with the US government and other countries.

Besides Lynk and SpaceMobile’s services, the US government also utilizes Starlink’s encrypted government service, Starshield, whose equipment is manufactured in the US. The Wall Street Journal called it:

“A killer app on battlefields for steering next-generation drone swarms and coordinating troops.”

Starlink’s Expanding Role: Revolutionizing Connectivity Amid Controversy

The advanced satellite system of Starlink has been gaining a lot of popularity, revolutionizing communications as well as battlefield tactics. Starlink has actually emerged as a key tool on the modern battlefield, as seen in Ukraine. 

Just last week, it was reported that SpaceX got a contract from the US government to expand Ukraine’s access to Starshield. As per this, 2,500 Starlink terminals already in the country will get access to Starshield, in addition to 500 previously connected, bringing the total to 3,000. Starshield is an encrypted signal that’s more difficult to jam or hack into. 

The purpose of the contract is to “facilitate internet connectivity in Ukraine,” according to a statement from the Space Systems Command’s Commercial Satellite Office.

This expansion was made under President Joe Biden and, as such, has an uncertain future, with President-elect Donald Trump promising to end the war between Ukraine and Russia. 

On top of it, Musk’s history with Ukraine is also complicated. In 2022, he threatened to cut financial support for Starlink, saying his company couldn’t carry the costs indefinitely and that its terminals weren’t meant to be used in the military.

Most recently, the Ukrainian Congress Committee of America (UCCA) took action to block the tech company from placing nearly 22,500 Starlink satellites into low-earth orbit, citing concerns over Elon Musk’s “contacts with Russia and the alleged use of his Starlink system by Russian forces in Ukraine.”

The US-based non-profit that represents Ukrainian-Americans urged the US Federal Communications Commission (FCC) to conduct further review before allowing SpaceX to launch additional Starlink satellites.

There is a necessity to determine if Starlink has been used to help a foreign adversary. If yes, this is not in the national security interest of Ukrainian Americans or of the entire country.”

– UCCA President Michael Sawkiw, Jr

Besides seeing growing usage in the military, Starlink’s services are also being utilized by Qatar Airways for its entire fleet. Its CEO, Badr Mohammed al-Meer, shared the news in an interview where he noted “that the project is moving forward…and on a very fast track.” By the end of the first half of next year, the national carrier is expecting to have it installed on as many as 60 aircraft. 

“Being connected is very important,” said Al-Meer, adding that there’s “very high demand from people to stay connected,” and the company will offer Starlink service free of charge to everyone on board.

Starlink Qatar Airways Deal

Meanwhile, the Indian government is considering relaxing the satellite communications security norms to allow Starlink and Amazon Kuiper to enter the market. 

Foreign satcom companies have been unable to get the global mobile personal communication by satellite (GMPCS) license so far in the country due to rules set in place by the government, which is now looking to relax them.

While Starlink’s launch has been delayed in the country due to regulatory challenges, it has already been offering beta services in selected areas since 2020. 

So, nations across the world are clearly making use of Starlink’s services, but not China. The country is actually building a Starlink system of its own. Currently, China has 1,059 satellites in orbit, almost half of which are commercial satellites.

Just last week, Qianfan, or the “SpaceSail” network, launched its third batch of satellites. The goal of the Chinese state-backed company is to deploy a “mega-constellation” of thousands of satellites to beam fast internet access to users anywhere in the world.

SpaceSail is also planning to launch a satellite service to compete with Starlink in Brazil, with chief executive Jie Zheng telling reporters that it is “committed to being a long-term partner” in Latin America.

Meanwhile, late last month, the Communications Regulatory Authority of Namibia issued a cease-and-desist order to Starlink for operating in the country without the required telecommunications license. The regulator has already confiscated terminals from consumers and has advised the public not to purchase the equipment or subscribe to its services.

Starlink’s Evolution: Becoming a Game-Changer in Satellite Internet

SpaceX’s satellite mega constellation, which aims to provide low-cost internet service to remote areas, has been expanding services and growing its user base despite the controversies and mounting competition. 

Just a few months ago, it surpassed 4 million global subscribers after being in the market for just four years. Starlink had its beta launch in Oct. 202, and by Dec. 2022, it had achieved 1 million subscribers, which increased to 2 million by Sept. 2023 and then jumped by another 1 million in May. 

Starlink’s subscriber growth, while rising globally, is seeing a slowdown in the US. As of early August, SpaceX had over 1.4 million subscribers in the country, which is only a slight increase from 1.3 million in Dec. 2022, according to a report filed with the Federal Communications Commission.

Starlink Connecting People Around the World

Still, the company is making a lot of splashes, and after initially targeting residential users, it has now moved on to large customers. This rapid customer growth has actually helped the company rake in huge revenue, which, according to its CEO Musk, is expected to generate $6.6 billion this year, up from $1.4 billion two years ago.

An in-depth report from Quilty Space in Starlink revealed that the company is finally on the trajectory to deliver effective returns on invested capital, posting its first free cash flow positive year. It further forecasts the company reaching $3.8 billion EBITDA this year. 

The report stated:

“By targeting consumers first, primarily via a direct-to-consumer sales model, Starlink was able to scale at an unprecedented pace for a satellite operator. Starlink is now evolving and expanding its strategy for enterprise, mobility, and government end markets.”

Starlink’s success, as well as the technological prowess of Starship, the fully reusable super heavy-lift launch vehicle, has SpaceX’s valuation surging from just $210 billion earlier this year to now around $350 billion, according to a recent Bloomberg report. This makes SpaceX one of the world’s most valuable private companies. 

Starlink’s success hasn’t been without criticism, though, with astronomers raising concerns about the unintended electromagnetic radiation from its satellites, which interfere with their observations. SpaceX has since taken steps to reduce its satellites’ visible brightness.

The company also noted earlier this year that when developing a satellite network, several regulatory and new technical challenges like transmitting sufficiently strong radio signals emerged that have to be tackled.

Despite all these challenges, Starlink continues to grow fast, and its future looks promising. Currently, the company’s focus is on substantially increasing its fleet of satellites to provide fast and reliable Internet to remote areas. Increased capabilities will help expand both its subscribers and revenue, which in turn will help with Musk’s Mars plan. 

Just last month, SpaceX proposed a constellation of satellites around Mars, referred to as “Marslink,” which would be capable of providing more than 4Mbps of bandwidth between Earth and Mars.

Click here to learn why SpaceX is able to pull off Telesat’s goal so cheaply.

Conclusion

Musk, the world’s wealthiest man, is known for his innovative ventures, including Tesla (TSLA +3.4%), which designs, manufactures, and sells electric vehicles, energy storage devices, and solar panels; X (previously Twitter), which he bought for $43 billion and aims to turn it into an “everything app,” and Neuralink; a neurotechnology company valued at about $5 billion last year that develops a brain-computer interface (BCI) technology. There’s also xAI, whose focus is on advancing artificial intelligence (AI), and The Boring Company, which wants to solve the problem of traffic and transform cities. 

So, Musk clearly carries a futuristic vision, and SpaceX, of which Starlink is a key part, is yet another prominent venture that is making it possible to access connectivity anywhere in the world through technological advances and continued expansion. With Starlink, Musk aims to completely transform telecommunications not only on Earth but beyond, and with the latest launch of the latest Starlink satellites, it is fast becoming a reality!

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