News

SpaceX’s ultimate ace in the hole is its Starlink satellite internet business

Published

7 years ago

June 15, 2018

Eric Ralph

In a 2018 report on the current state of the satellite industry, the rationale behind SpaceX’s decision to expand its business into the construction and operation of a large satellite network – known as Starlink – was brought into sharp contrast, demonstrating just how tiny the market for orbital launches is compared with the markets those same launches create.

First and foremost, it must be acknowledged that SpaceX’s incredible strides in launch vehicles over the last decade or so have been explicitly focused on lowering the cost of access to orbit, the consequences of which basic economics suggests should be a subsequent growth in demand for orbital access. If a sought-after good is somehow sold for less, one would expect that more people would be able and willing to buy it. The launch market is similar, but also very different in the sense that simply reaching orbit has almost no inherent value on its own – what makes it valuable are the payloads, satellites, spacecraft, and humans that are delivered there.

: An overview of space industry in 2017, produced by Bryce Space & Technology for the 2018 State of Satellite Industry Report.

: SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural Feb. 2018 launch, showing off a utilitarian design. (SpaceX)

As a consequence, if the cost of access to orbit plummets (as SpaceX hopes to do with reusability) but the cost of the cargo still being placed there does not, there would essentially be no reason at all for demand for launches to increase. For there to be more demand for cheaper launches, the cost of the satellites that predominately fuel the launch market also needs to decrease.

One of the first two prototype Starlink satellites separates from Falcon 9’s upper stage, March 2018. (SpaceX)

Enter Starlink, SpaceX’s internal effort to develop – nearly from scratch – its own highly reliable, cheap, and mass-producible satellite bus, as well as the vast majority of all the hardware and software required to build and operate a vast, orbiting broadband network. Add in comparable companies like OneWeb and an exploding landscape of companies focused on creating a new generation of miniaturized satellites, and the stage has truly begun to be set for a future where the cost of orbital payloads themselves wind up dropping just as dramatically as the cost of launching them.

Just by sheer numbers alone, stepping from launch vehicle and spacecraft production and operations into the satellite manufacturing, services, and connectivity industries is a no-brainer. Bluntly speaking, the market for rocket launches makes up barely more than one-sixtieth – less than 2% – of the entire commercial satellite industry, while services (telecommunications, Earth observation, science, etc.) and equipment (user terminals, GPS receivers, antennae, etc) account for more than 93%. Even the satellite manufacturing industry taken on its own is more than three times as large as the launch industry – $15.5b versus $4.6b in 2017.

In other words, even if SpaceX was to drop the cost of Falcon 9, Heavy, and BFR launches by a factor of 10 and the market for launches expanded exponentially as a result (say 50-100x), the market for launches would still be a tiny fraction of the stagnant, unchanged, unimproved satellite services and production industries. Put simply, there is scarcely any money to be made in rocket launches when compared with literally any other space-related industry.

: An overview of just the commercial aspects of the satellite industry. (SIA)

: Falcon Heavy’s inaugural launch, February 2018. (Tom Cross)

While far from a done deal, Starlink is thus without a doubt the most promising established method for SpaceX to dramatically increase its profitable income, income which could thus be invested directly in launch vehicles, space resource utilization, sustainable interplanetary colonies, and more, all while potentially revolutionizing global freedom of connectivity.

News

Tesla threatened in France with claims of ‘deceptive’ practices

Tesla has been threatened by the Competition, Consumer Affairs, and Fraud Control Office in France after the agency said it is participating in “deceptive business practices” related to its semi-autonomous driving capabilities.

Published

2 hours ago

June 24, 2025

Joey Klender

(Credit: Tesla)

Investigators in the government office said that Tesla has engaged in deceptive commercial practices over the capabilities of its cars. In the past, other agencies and even some skeptics have said that Tesla’s use of the phrases “Autopilot” and “Full Self-Driving” is inaccurate in terms of its capabilities.

Tesla Autopilot gets stone cast in its direction by Pete Buttigieg

However, Tesla has been transparent with consumers and regulatory agencies that its cars are not yet fully autonomous, meaning drivers could sleep, play on their phones, or pay no attention to the road. The car would take care of steering and speed.

Tesla has never maintained that its cars are capable of this. On its website and in its Owner’s Manuals, it says that drivers are required to pay attention and be prepared to take over in case of an emergency.

The office began the investigation back in 2023 and, this week, ordered Tesla to comply with regulations within the next four months. If it does not, it will face fines of €50,000 per day.

This is not the first time Tesla has had some pushback from regulators regarding the naming of its semi-autonomous driving platforms. Back in 2023, then Secretary of Transportation in the United States, Pete Buttigieg, said the name “Autopilot” was not accurate because it is still a hands-on system:

“I don’t think that something should be called, for example, an Autopilot, when the fine print says you need to have your hands on the wheel and eyes on the road at all times. We call balls and strikes. I view it as something where it’s very important to be very objective. But anytime a company does something wrong or a vehicle needs to be recalled or a design isn’t safe, we’re going to be there.”

He then said that Autopilot and its interaction with the person operating the car is a “real concern.”

Elon Musk

Tesla Robotaxi launch draws attention from regulators, mainstream media milks it

The Tesla Robotaxi launch has resulted in some questions from the NHTSA, a typical thing for early launches. Media is milking it as a huge thing.

Published

3 hours ago

June 24, 2025

Joey Klender

Credit: @AdanGuajardo/X

Tesla launched its Robotaxi platform in a limited capacity earlier this week in Austin, Texas, and after hundreds of rides have been taken, some instances have caught the attention of the National Highway Traffic Safety Administration (NHTSA).

However, the information the NHTSA is requesting is routine and totally normal for the early stages of a rollout of this magnitude. But that did not stop mainstream media from milking it into something controversial, when it really is not.

Tesla Robotaxi riders tout ‘smooth’ experience in first reviews of driverless service launch

Various outlets reported on the NHTSA’s request to Tesla for additional information regarding things seen in videos online.

The NHTSA said it is “aware of the referenced incidents and is in contact with the manufacturer to gather additional information.” Bloomberg initially reported on the NHTSA’s request for information.

The thing is, the NHTSA has often reached out to companies right after it launches a driverless vehicle service. Both Waymo and GM’s Cruise, as well as Amazon’s Zoox, have had the NHTSA reach out to them regarding the launch of their driverless ride-hailing services.

The headlines for Tesla are significantly different:

Reviews from riders in Austin have stated the Robotaxi platform is “smooth” and “comfortable,” with many ranting and raving about the advantages the new ride-hailing service has over others. Not only is it being monitored by a safety monitor in the passenger seat, but there are also other things that make it unique.

One of the most notable is that your Robotaxi will automatically sync entertainment and streaming settings.

The sensationalism that the media tends to use with Tesla is a big reason the company did not invite mainstream outlets to the event. Instead, reporters were seen waiting for Early Access invitees to exit their cars to ask them questions.

Many denied the inquiries:

“Can I talk to you, I’m with Reuters”
> No
🤣🤣 @BeardedTesla @SawyerMerritt pic.twitter.com/jGUdakGzx1
— Robin (@xdNiBoR) June 22, 2025

Elon Musk responded to that video by saying “Lmao,” an acronym for “laughing my ass off.”

News

Starlink Cellular’s T-Mobile service to grow with third-party app data

From Oct 2025, T-Satellite will enable third-party apps in dead zones! WhatsApp, X, AccuWeather + more coming soon.

Published

13 hours ago

June 23, 2025

Maria Merano

(Credit: T-Mobile)

Starlink Cellular’s T-Mobile service will expand with third-party app data support starting in October, enhancing connectivity in cellular dead zones.

T-Mobile’s T-Satellite, supported by Starlink, launches officially on July 23. Following its launch, T-Mobile’s Starlink Cellular service will enable data access for third-party apps like WhatsApp, X, Google, Apple, AccuWeather, and AllTrails on October 1, 2025.

T-Mobile’s Starlink Cellular is currently in free beta. T-Satellite will add MMS support for Android phones on July 23, with iPhone support to follow. MMS support allows users to send images and audio clips alongside texts. By October, T-Mobile will extend emergency texting to all mobile users with compatible phones, beyond just T-Mobile customers, building on its existing 911 texting capability. The carrier also provides developer tools to help app makers integrate their software with T-Satellite’s data service, with plans to grow the supported app list.

T-Mobile announced these updates during an event celebrating an Ookla award naming it the best U.S. phone network, a remarkable turnaround from its last-place ranking a decade ago.

“We not only dream about going from worst to best, we actually do it. We’re a good two years ahead of Verizon and AT&T, and I believe that lead is going to grow,” said T-Mobile’s Chief Operating Officer Srini Gopalan.

T-Mobile cuts Starlink Cellular service price, eyes broader access

T-Mobile unveiled two promotions for its Starlink Cellular services to attract new subscribers. A free DoorDash DashPass membership, valued at $10/month, will be included with popular plans like Experience Beyond and Experience More, offering reduced delivery and service fees. Meanwhile, the Easy Upgrade promotion targets Verizon customers by paying off their phone balances and providing flagship devices like the iPhone 16, Galaxy S25, or Pixel 9.

T-Mobile’s collaboration with SpaceX’s Starlink Cellular leverages orbiting satellites to deliver connectivity where traditional networks fail, particularly in remote areas. Supporting third-party apps underscores T-Mobile’s commitment to enhancing user experiences through innovative partnerships. As T-Satellite’s capabilities grow, including broader app integration and emergency access, T-Mobile is poised to strengthen its lead in the U.S. wireless market.

By combining Starlink’s satellite technology with strategic promotions, T-Mobile is redefining mobile connectivity. The upcoming third-party app data support and official T-Satellite launch mark a significant step toward seamless communication, positioning T-Mobile as a trailblazer in next-generation wireless services.