Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Barchart
Barchart
Caleb Naysmith

Elon Musk's Starlink and Tim Cook's Apple Are Quietly In Fierce Competition to Win This 21st Century Space Race Despite Previous 'Promising Conversations'

​In a rapidly evolving technological landscape, two of the world's most influential companies — Elon Musk's SpaceX and Tim Cook's Apple Inc. (AAPL) — are intensifying their competition to dominate the future of satellite-based communications. This burgeoning rivalry centers on the expansion of satellite services aimed at eliminating cellphone dead zones and enhancing global connectivity.​

The Genesis of the Competition

Apple has significantly increased its investment in satellite communications, aiming to provide seamless connectivity in areas lacking traditional cellular infrastructure, and potentially reduce any reliance on Elon Musk’s SpaceX. The tech giant's commitment is evident in its $1.7 billion investment in satellite operator Globalstar (GSAT), which powers Apple's built-in satellite connectivity feature for iPhones. This service enables users to send text messages and call for emergency assistance in areas without traditional cellphone service. ​

 

Specifically, Apple reported late last year it will take a 20% equity stake in Globalstar for $400 million, refinance $232 million of Globalstar’s debt, and prepay $1.1 billion to fund its network. 

Concurrently, SpaceX's Starlink has been deploying a vast constellation of satellites, with over 7,000 satellites launched to date, providing high-speed internet services to underserved regions worldwide. Starlink's rapid expansion has positioned it as a formidable player in the satellite internet market. 

Spectrum Rights and Regulatory Tensions

The competition between Apple-backed Globalstar and SpaceX has intensified over the acquisition of limited spectrum rights essential for transmitting signals. Both companies are vying for these scarce resources, leading to increased tensions and lobbying efforts with federal regulators. SpaceX has reportedly urged the Federal Communications Commission (FCC) to reject Globalstar's application for permission to utilize specific spectrum for Apple's new satellite network, highlighting the high stakes involved in securing these rights. ​

Don't Miss: 

  • See Why Some of the World’s Biggest Brands are Betting on This Next-Gen Ad Tech Startup—And How You Can Too

Despite their rivalry, there have been instances of collaboration. SpaceX and its partner, T-Mobile, approached Apple to integrate Starlink services with iPhones. After negotiations, an agreement was reached allowing the SpaceX and T-Mobile satellite cellphone service to be compatible with newer iPhones. However, Apple maintains strict control over its software ecosystem, ensuring that any integration aligns with its stringent standards. ​

Elon Musk has acknowledged discussions with Apple regarding the use of Starlink connectivity for iPhone satellite features. The project initially started in 2022 when Musk said, "We’ve had some promising conversations with Apple about Starlink connectivity. iPhone team is obviously super smart." ​

But Musk and Cook have become increasingly embattled in recent years, with their drastically different political ideologies being a potential catalyst.  Cook and Musk previously had a fallout over Apple using X, formerly Twitter, to advertise. 

The escalating competition between Apple and SpaceX exemplifies the growing significance of satellite technology in the telecommunications industry. As both companies strive to enhance global connectivity, their efforts could lead to significant advancements in eliminating communication dead zones and providing reliable internet access worldwide. However, the rivalry also raises questions about spectrum allocation, regulatory challenges, and the future landscape of global communications.​

As this 'space race' unfolds, consumers and industry observers alike will be keenly watching how these tech giants navigate collaboration and competition in their quest to revolutionize global communication.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.