Elon Musk’s Starlink Grand Disruption And Looming Value Destruction in Telcos

A few months ago, I wrote that SpaceX Starlink would in near future develop a “special phone” which would make it possible for users to connect directly to SpaceX satellites without an “intermediary” or downlink station. That call has come to pass. 

Elon Musk, the generation’s finest innovator, tweeted this: “Our satellites launching in next few months have inter-satellite laser links, so no local downlink needed. Probably active in 4 to 6 months…. Technically, data packets do not need to touch regular Internet – data can flow from user terminal to satellite/s to user terminal”.

Largely with this, SpaceX Starlink can deal directly with users, cutting even regulatory ordinance in nations. Unless a country bans the distribution of the phones, there is no way it can stop this redesign.

With Moore’s law on its side, the cost of the electronics will keep dropping – and over time, the phones will become cheap enough. If that trajectory is followed, be concerned if you are running a telco business, especially in rural Africa, because satellite broadband in this format Starlink is bringing it will provide a new basis of competition.

Our satellites launching in next few months have inter-satellite laser links, so no local downlink needed. Probably active in 4 to 6 months.

— Elon Musk (@elonmusk) September 1, 2021

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Comment: Ndubuisi Ekekwe Its not just banning the distribution of phones, per ITU standards the regulators control the spectrum, so without banning phones the user or SpaceX/Starlink still need the regulators to manage the freq. spectrum used or the solution wont scale.

My Response: My thinking is this: Elon Musk might have tried to engage many regulators and many are not open for business since they want to sell spectrum and command the airwaves. So, this playbook is to use tech to overcome that conversation. Personally, I hope Musk does not follow this path because if he does, he could consolidate all digital wealth in America since over time, no one will care for Glo, MTN, etc. But whether it is possible, yes indeed. People who use satellite phones do not ask bureaucrats for permission to get receptions already! The issue is when the whole village does that!

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