SpaceX continues to improve it’s Direct to Cell (DTC) technology. Developed to provide connectivity to cell phone users when they run into a dead spot, the service originally provided users with the ability to send texts and emergency messages via satellite. Now, the T-Satellite service offered by T-Mobile allows users to view certain apps using satellite connectivity including Google Maps and WhatsApp. Eventually, users will be able to make calls in these terrestrial “Dead Zone” areas.
SpaceX is going back to EchoStar to purchase more spectrum
SpaceX, which acquired H-block and AWS-4 spectrum from EchoStar this past September for $17 billion, is now going back to EchoStar for more spectrum. Unlike the AWS-4 airwaves it bought a couple of months ago which is used for mobile satellite services (MSS), the AWS- 3 spectrum that SpaceX is purchasing now from EchoStar for $2.6 billion is designated for terrestrial use. This spectrum is unpaired which means that it needs to use TDD (Time Division Duplexing).
With TDD, the same frequency is used for both downlinks and uplinks. Yes, this is akin to two drivers heading toward each other on a one-way road and nothing good comes from the resulting crash. But with TDD, the same frequency alternates between downlinks and uplinks. Thus, there is no heads-on accident since the sending and receipt of data is handled at different time intervals.
Some believe that EchoStar’s paired AWS-3 spectrum will end up with Verizon. Paired AWS-3 spectrum airwaves use FDD or Frequency Division Duplexing. This tech allows devices to transmit and receive data at the same time since it requires the use of two separate frequency blocks, one for downlinks and one for uplinks. FDD also allows signals to go longer distances from the base station than TDD. Most low band 5G spectrum use FDD while 5G mid-band spectrum such as T-Mobile‘s 2.5GHz airwaves and AT&T and Verizon‘s C-band spectrum use TDD.
FCC Chairman Carr applied pressure to EchoStar resulting in the sale of airwaves to AT&T
SpaceX still will need regulatory approval to complete the purchase of the AWS-3 spectrum and SpaceX chief Elon Musk hasn’t mentioned what the company plans on doing with the airwaves. Some believe that Musk has something cooking to disrupt the wireless industry. One thought is that Musk will put together a terrestrial network made up of mid-band spectrum to become the nation’s fourth MNO (Mobile Network Operator). Ironically, that was the position that EchoStar’s Boost Mobile was supposed to have until EchoStar’s financial difficulties and pressure from FCC Chairman Brendan Carr forced it to sell off its spectrum.
In another irony, Boost Mobile signed an MVNO deal with AT&T and is already using the spectrum that it sold to the carrier in August. Now a hybrid MNO using AT&T‘s radios but its own 5G core, Boost no longer has to worry about building and maintaining cell towers. EchoStar Chairman Charles Ergen said that this normally keeping cell towers in tiptop shape wouldn’t have be an issue, but its scale was so small that it did present a problem.
AvidThink founder and principal Roy Chua says that the latest deal with EchoStar will give SpaceX a nationwide and contiguous block of mid-band airwaves perfectly suited for D2D or direct-to-cell (D2C) phone services. Having said that, Chua also expects that instead of becoming the fourth facilities-based mobile network provider, SpaceX has another idea in mind.
“I expect they will continue to partner with MNOs for D2C services but leverage the spectrum for other more niche use cases in the enterprise/IoT/OT space,” Chua said. Recon Analytics founder Roger Entner also sees some hiccups for Elon if this is his plan. While Musk, being the richest man in the world can throw money at any problem that pops up, Etner told Fierce Wireless that “Coming in and trying to have scale is going to be very difficult.”
