Posted September 19, 2022
By Ray Blanco
Apple Shells Out for Satellite Connectivity
Right now, we have the beginnings of a trillion-dollar industry on our hands…
You see, more than half the world’s population can’t get on the internet; over 3.5 billion people are without connectivity. And for those of us who can, it’s often expensive and low-quality. But that’s where satellite internet can save the day.
This story is something I’ve been following for a while now and, as I wrote about in a recent update, Apple has officially stepped foot into the satellite connectivity ring with the release of its newest iPhone.
The new iPhone 14 will bring a global SOS feature that can send out an emergency distress signal anywhere on the planet, delivered via satellite. Apple is also putting up $450 million of its own cash to build out the infrastructure necessary for this service to work.
Most of that money will go to its partner and satellite operator: Globalstar.
Apple has agreed to put up 95% of the cash needed to get the new satellites off the ground. As for the remaining 5%, Globalstar will be raising some debt to cover it per its agreement with Apple.
However, and here’s the interesting part, a piece of that agreement states that Apple will get exclusive access to 85% of Globalstar’s current and future network capacity for use with upcoming satellite features.
This makes me think that Apple is looking to use satellite connectivity for more than SOS signals. Whether we’re talking about air travel, dead zones, or parts of the world where internet service providers can’t be found, Apple could be looking to provide connectivity.
Although it will be slow at first, many companies will be racing to develop more advanced satellites and systems to allow for quicker connections and faster speeds.
The ability to provide internet services to anyone around the world is a powerful position to be in... Not to mention one that will make massive amounts of money.
This could be the first of many major investments from Apple if it wants to solidify its position as a provider of satellite connectivity.
Read below for more on that and everything I have my eye on this week…
Why Apple is Spending $450 Million on Satellites For its New iPhone
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