Internet startup Starry Group Holdings Inc. has successfully emerged from bankruptcy with a new leader and a renewed focus on growth and profitability [96371549]. Under the leadership of CEO Alex Moulle-Berteaux, the Boston-based wireless broadband provider has developed a fully funded moderate-growth business plan aimed at breaking even within two years. Starry offers affordable wireless broadband connections, positioning itself as a cheaper alternative to cable and landline internet services [96371549]. Despite currently having fewer than 100,000 broadband subscribers, Starry operates in major cities such as Boston, Los Angeles, New York City, Denver, and Washington. However, the company will face tough competition from major US mobile service providers utilizing super-fast 5G networks for internet access. Starry's journey includes going public in 2021 through a merger with FirstMark Horizon Acquisition Corp. and previously securing federal funding for broadband service expansion [96371549].
In other news, SpaceX has launched its first batch of cell service satellites in partnership with T-Mobile [2a39556d]. The satellites are part of SpaceX's Starlink constellation and will provide cell service coverage in remote areas. This launch is a significant step towards SpaceX's goal of providing global broadband coverage. The partnership with T-Mobile will allow the telecom company to expand its coverage and reach more customers. The satellites were launched on January 3, 2024.
SpaceX's cellular Starlink system, which uses orbiting satellites to beam internet data to phones on the ground, has been a 'massive success' in testing [fdbc3182]. The company has successfully communicated with multiple models of unmodified Samsung, Apple, and Google devices using T-Mobile's PCS G Block spectrum. The technology has been tested in various locations, including urban and rural areas, indoors and outdoors, and under tree cover. SpaceX plans to launch the cellular Starlink system for T-Mobile customers later this year, starting with satellite-based SMS messaging, followed by voice calls and data next year [fdbc3182].
Starlink, a satellite telecommunications service under SpaceX owned by Elon Musk, plans to provide global LTE coverage accessible from mobile devices starting in 2025 [8367c157]. The technology will operate as 'cell towers in space' and will provide satellite connectivity through partnerships with telecom operators. Starlink's vertical integration sets it apart from competitors. Concerns have been raised about the need for oversight considering Musk's past decisions, including providing Starlink devices to Ukraine during the Russian invasion and his control over the deployment and shutdown of the technology [8367c157].
SES, a European satellite group, has announced its plan to acquire US rival Intelsat for $3.1 billion [65c19fd6]. The merger, approved by both companies' boards, is expected to close in the second half of 2025 pending regulatory approval. SES and Intelsat aim to compete in the space-based internet service market, which is currently led by Elon Musk's Starlink. The combined group's revenue is projected to come 60% from high-growth segments, generating an annual core profit of 1.8 billion euros. This move comes four years after Intelsat filed for Chapter 11 bankruptcy protection and launched a restructuring program. The satellite industry faces growing competition from low Earth orbit providers like Starlink, Eutelsat, and Amazon's Project Kuiper [65c19fd6].
SES announced that electrical issues on the O3b mPower satellites will significantly reduce their operational life and broadband capacity. The operator will need Boeing to build two additional satellites and upgrade five others to achieve the expected performance. The delay in upgrades has reduced the revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) expected in 2024 by around 5%. Despite the increase in the number of power module switch-offs, SES does not expect to spend more money on the constellation due to a risk-sharing deal with Boeing. The launch of the seventh and eighth O3b mPower satellites, originally scheduled for this year, will now take place in the second half of 2024. SES is exploring potential mitigation strategies, including using geostationary satellites and drawing from the $3 billion it received for clearing C-band spectrum for 5G operators in the United States. SES reported a revenue of 507 million euros ($537 million) for the third quarter of 2023, with adjusted EBITDA falling to 792 million euros. The operator expects to report between 1.95 billion and 2 billion euros in revenue for 2023. [96371549] [9d209101] [2a39556d] [fdbc3182] [8367c157] [65c19fd6].
The managing director designate of Space42, Karim Sabbagh, discusses the merger between Bayanat AI and Al Yah Satellite Communications Company (Yahsat) to form Space42. The merger aims to create a vertically integrated provider of AI-powered geospatial and mobility solutions, Earth Observation, satellite communications, IoT, and business intelligence. The merger is aligned with the strategic objectives of both Bayanat and Yahsat, and shareholders and investors have responded positively to the merger. Regulatory approvals are still pending, but the merger is expected to be completed in the second half of 2024. Space42 plans to reshape the global space technology landscape, particularly in the Middle East North Africa (MENA) region, by offering services that integrate geospatial analytics with satellite communications. Space42 aims to contribute to the UAE's National Space Strategy 2030 and the National Strategy for Artificial Intelligence 2031 by accelerating an AI-powered ecosystem and enabling growth in the space industry. With a combined revenue of Dhs2.8bn and net income of Dhs639m, Space42 plans to leverage its financial strength to drive business expansion and innovation. The company will leverage AI-powered geospatial solutions, satcom, and other advanced technologies to pioneer innovative solutions in the space industry.