Spaceks’s $ 17 billion agreement Echostar won’t work without a star

YouTwo-thirds of satellites currently in low orbit with low countries, Spacex has become king of heaven, overseeing a growing broadband internet empire on the field. But when it comes to the starting job of using satellites to connect to mobile phones in remote areas outside the reach of telecommunications towers, Spacex was far limited. So far, he has collaborated with a narrow band of cellular spectrum T-Mobile in the US, only able to relay text messages.

Elona Billionaire Monday made a step to break out Monday, announcing the purchase of a long-lasting piece of spectrum from Echostar, which is perfect for heating signals on mobile phones from space. Hefti price of the ad, $ 17 billion, makes it the biggest procurement of Spaceks. Company pawn That the spectrum that buys will allow for new satellites to be 20 times in flow and full of 5G phone services – together with video calls at the top of any picturesque mountain you want to climb.

But these promises come with warning: these new satellites seem to launch him a giant rocket, develops, Starship. If Starship doesn’t work as promised, it would be a giant key key, Caleb Henry said, analyst with a premise area. The plans of Direct Cell Spaceks are “Dependent on Stars,” he said.

Although his latest test flight went well, breaking down three straight, which ended with spectacular explosions, questions still abound Starship’s design And whether it can deliver a drastic reduction in the cost of launch musk has promised.

The rocket is designed to carry 100 tons of useful load in low-Earth orbit, Spacexs built a larger satellite for a broadband network, which is Falcon 9. The company is most likely to be Falcon 9.

“When you want to close the connection with a poor antenna in the phone, you must be the satellite much more powerful,” he said.

Spacex puts 655 its first generation of satellites of direct-cell satellites in the falcon 9, but stopped launch in June and now waiting for a starboard.

Musk promises that the huge capacity of a rocket, plus that it can more fully use, will also allow Spaceks to radically reduce startup costs, allowing him to build a service at affordable costs. Proving reuse remains in contrast to a rocket that does not smoke regularly. But Spacex also has to show that Starship can actually pull 100 tons to the low orbit, Henry said. The latest version being tested is only designed to carry 35 tons.

The agreement is not such a large lift for Spaceks, although 17 billion dollars can look like a big piece of change for the company that Mošus moves in revenue of $ 15.5 billion this year. It could bring $ 4 billion to $ 5 billion from leasing spectrum for the earth’s use of cells, Philip Burnett, telecommunications analyst at a new street research. And $ 8.5 billion in stock which part of work is essentially “free” considering the enthusiasm of investors for the company. Spacex is supposedly in the middle of Collection of capital On the valuation of $ 400 billion, and they would not have trouble tapping the debt markets to finance the agreement, the Burnett said.

However, the analysts surprised the readiness of Spaceks to pay off as uncertain prospects for returning to return to the market directed directly on the cell. T-Mobile This summer has launched a $ 10 in an introductory price of $ 10 a month. Analysts started the total opportunity in the beginning could be a couple billion dollars. The large three cellar carriers could put that spectrum at a lot of cost-use, terrestrial, Burnett said.

“Spacek has effectively had to apply the earth’s wireless price for the spectrum, which will be used in a project that may not generate the type of return you see in wirelessness,” Burnett said.

For musk, motivation can be in ehostar driving from the market and put pressure on other competitors. Echostar’s decision to sell most of its radio frequency rights At AT & T And Spacek came as he fought with a crushing cargo. Worse, after the complaints from Spacek, FCC started a review that could lead to revocation permits to a spectrum for someone not using it.

But the founder of the billionaire Charlie Ergen was still in a strong negotiating position with Spacek, said Tim Farrar, an independent universe and telecommunications analyst, because the spectrum held by a kind of species. “There were no other comparable options on the table at this point and potentially ever. So it was somehow taken or left,” he said.

Much of 50 Meregairca radio frequency bands that Echostar sells lies in a series of frequencies originally separated for mobile satellite services, because they are most effective for transfer space to country.

Farrar believes that the agreement could push Apple to leave efforts to build an internet ability directly on the device with Globalstar; Spacek wants to be a partner instead. With the addition of Echostar’s valued spectrum, “I think there is a significant possibility that Apple will change horses,” Farrar said.

But that this happened, Spacek still needs to use the spectrum, and a large part of the equation is starry. “In order to be so devastating because Spacex wants to be, we need to introduce ourselves to improve,” Henry said.