Telstra & Optus Facing Major Threat From Space X 4G Satellites
SpaceX has just launched a payload that could soon become Telstra and Optus’s worst nightmare.
The private rocket company of high-tech entrepreneur Elon Musk, has launched the first batch of 60 small satellites into low-Earth orbit which according to Australian and Boost CEO Peter Adderton will be able to cover all of Australia with 4G connectivity as fast as what Telstra is delivering today.
Within five years Telstra shareholders could be wondering where all the “cheap” data and connectivity has come from with consumers getting 4G speeds delivered by Satellites in low orbit across Australia.
Currently Telstra Vodafone and Optus have to build a network of towers to deliver their services.
At the weekend Falcon 9 rocket carrying the satellites blasted off from Cape Canaveral Air Force Station clearing a major hurdle for a business venture that Musk hopes will generate much-needed cash for his larger ambitions in space.
As many as 2,000 satellites will be launched per year, with the ultimate objective of placing up to 12,000 into orbit.
The 60 satellites flown into space this week were released into orbit as planned about an hour after Thursday’s launch, and the Falcon 9’s main-stage reusable booster rocket flew back to Earth for a successful landing on a barge floating in the Atlantic.
SpaceX said that all the satellites deployed were functioning properly.
Each weighs about 226 kilo, making them the heaviest payload carried aloft by SpaceX to date.
The service in Australia will be delivered via a constellation of satellites capable of beaming signals for high-speed internet service from space to paying customers around the globe.
All an Australian will have to do is go online book a service and they will get access to the same 4G speeds that carriers are currently delivering in Australia today.
The satellite service is expected to be operational by 2023.
Musk has said he sees the new Starlink venture as an important new revenue stream, income is expected to top out at around $3 billion a year.
Musk said that at least 12 launches carrying similar payloads are needed to achieve constant internet coverage of most of the world.
For now, Starlink is only authorized for U.S. operations.
His operation could face competition after Airbus SE-backed OneWeb launched its own clutch of satellites in February, while LeoSat Enterprises and Canada’s Telesat are also working to build data networks.
In each network, the tiny satellites orbit closer to Earth than traditional communications satellites, a technological shift made possible by advances in laser technology and computer chips.
Musk said SpaceX would begin approaching customers later this year or next year. As many as 2,000 satellites will be launched per year, with the ultimate objective of placing up to 12,000 into orbit.