Apple’s ambitious plans to enhance satellite connectivity for iPhones are encountering significant obstacles following the company’s decision to decline a substantial offer from Elon Musk’s SpaceX (via 9to5Mac).
In 2022, Elon Musk proposed that SpaceX’s Starlink provide exclusive satellite connectivity to iPhones for 18 months in exchange for a $5 billion upfront payment. Post this exclusivity period, Apple would pay $1 billion annually for continued service.
Musk also warned that if Apple declined, he would partner with another telecom provider to offer similar services. Apple chose not to accept this proposal, leading Musk to collaborate with T-Mobile to integrate Starlink services into their network.
Following the rejection, SpaceX has actively sought to impede Apple’s satellite endeavors. The company has petitioned the Federal Communications Commission (FCC) to dismiss Globalstar’s application for spectrum usage, arguing that the frequencies are underutilized. This move directly impacts Apple’s partnership with Globalstar, which is central to its satellite communication services.
Apple has invested over $1 billion in Globalstar to support features like Emergency SOS via Satellite on iPhones. However, with Globalstar’s limited satellite fleet, Apple is now exploring partnerships with other providers, including EchoStar and previously Boeing, to bolster its satellite capabilities.
Despite the rivalry, Apple and SpaceX have found common ground, for now.
The two companies have agreed to allow Starlink’s satellite services to function on newer iPhone models, with a rollout expected this summer. This collaboration aims to provide users with enhanced connectivity, especially in areas lacking traditional cellular coverage.
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“Following the rejection, SpaceX has actively sought to impede Apple’s satellite endeavours…” I would never expect that vindictiveness from Musk. /s
Good for Apple!