0.000000 3.800000 Tech It From Me is an independent and solo-produced podcast. 3.800000 7.080000 Welcome to the Tech It From Me podcast, I'm Mike Madole. 7.080000 12.720000 On Monday, Elon Musk's SpaceX just made one of the biggest moves in telecom history, 12.720000 18.480000 a $17 billion deal to buy wireless spectrum from Echo Star. 18.480000 22.960000 Now I know what you're thinking, another Musk headline, but this one is different. 22.960000 28.160000 This isn't about rockets or Mars, this is about your phone, your data plan, 28.160000 31.200000 and the future of global connectivity. 31.200000 35.040000 This is the Tech It From Me podcast, let's go. 35.040000 37.840000 This is the Tech It From Me podcast. 37.840000 39.840000 Let's start with the basics. 39.840000 46.000000 On Monday, September 8, SpaceX announced it's buying wireless spectrum rights from Echo Star 46.000000 49.520000 in a deal worth about $17 billion. 49.520000 53.360000 It's a mix of cash, stock, and debt commitments. 53.360000 55.040000 So here's the breakdown. 55.040000 62.080000 Echo Star is handing over its licenses for the AWS 4 and H-Block Spectrum Band. 62.080000 67.680000 These are part of the US wireless airwaves, scarce frequencies that carriers 67.680000 71.200000 and satellite companies fight hard to control. 71.200000 77.600000 SpaceX will also get 50 MHz of exclusive S-band spectrum in the US, 77.600000 81.760000 along with global mobile satellite service rights. 81.760000 87.760000 That last part is important because it means SpaceX isn't just buying US access. 87.760000 91.440000 It's securing the ability to operate internationally. 91.440000 96.560000 And finally, SpaceX agreed to cover $2 billion in debt payments 96.560000 100.400000 on Echo Star's behalf, stretching out through 2027. 100.400000 105.600000 If you put it all together, you have wanted the biggest spectrum deals we've ever seen. 105.600000 110.000000 And you might be asking, hey Mike, why does this even matter? 110.000000 114.640000 Well, spectrum deals aren't like buying more rockets or building more satellites. 114.640000 118.080000 Those are things SpaceX can manufacture. 118.080000 120.640000 Spectrum, on the other hand, is finite. 120.640000 124.960000 Governments regulate it, they auction it, and once it's in use, 124.960000 126.880000 there isn't any more to go around. 126.880000 132.480000 So what SpaceX just did is buy itself a massive long-term advantage 132.480000 135.920000 in the race to deliver satellite-powered wireless service. 136.960000 144.880000 This isn't a short-term play. This is a bet on the next, say, 10, 20 heck even 30 years of connectivity. 144.880000 148.640000 And here's where this deal gets more interesting in my opinion. 148.640000 151.120000 It didn't happen in a vacuum. 151.120000 155.680000 Echo Star has been under pressure with FCC scrutiny and debt piling up. 155.680000 160.960000 For them, selling off spectrum and partnering with SpaceX, it's a way to survive. 161.680000 168.400000 For SpaceX, it's a way to lock-in spectrum assets that would have cost far more if they came up for auction again. 168.400000 172.960000 So what we're looking at here isn't just another musk headline. 172.960000 178.880000 Spectrum is one of those invisible technologies that quietly controls how we all connect. 178.880000 186.080000 Every wireless signal from your phone to your Wi-Fi to GPS travels on a slice of spectrum. 186.080000 188.640000 And there's only so much of it to go around. 189.440000 191.200000 Think of it kind of like real estate. 191.200000 196.480000 Once governments allocate a piece of spectrum and auction it off, that's it. 196.480000 202.960000 Company spend billions because controlling the rate frequencies means controlling the ability 202.960000 206.000000 to deliver coverage, speed, and reliability. 206.000000 211.200000 Now, the spectrum SpaceX just acquired is particularly valuable. 211.200000 219.040000 AWS 4 and H-Block fall in the mid-band range. This is often called the Goldilocks Zone. 219.840000 222.080000 It's wide enough to carry a lot of data, 222.080000 226.720000 but low enough to cover long distances without needing a tower every few blocks. 226.720000 233.680000 MSS Spectrum, or Mobile Satellite Service, was built with satellites in mind. 233.680000 238.320000 It's designed to connect directly from space to devices on the ground. 238.320000 245.280000 Together, these bands give SpaceX a toolkit that blends the best of both worlds. 245.280000 248.960000 The reach of satellite with the performance of mobile broadband. 248.960000 255.840000 So think about it. Today, if you're in rural Alberta, northern Ontario or driving across the 255.840000 259.600000 prairies, there are still massive gaps in service. 259.600000 263.520000 Carriers don't always build towers where it isn't profitable. 263.520000 268.480000 With spectrum like this, Starlink can fill those gaps from orbit. 268.480000 272.160000 It's not just about rural coverage either. 272.880000 277.680000 In natural disasters when towers fail, satellites could keep phones online. 277.680000 282.640000 And long-term, this opens the door to global roaming without borders. 282.640000 289.680000 Your phone could stay connected anywhere, without juggling SIM cards or racking up insane fees. 289.680000 298.400000 So while it may sound like Alphabet Soup, AWS 4, H-Block, MSS, the real takeaway is this. 299.200000 305.520000 Spectrum is the scarce foundational resource that decides who gets to deliver the future of wireless. 305.520000 309.280000 And now, SpaceX owns a lot more of it. 309.280000 314.400000 Let's delve deeper into what SpaceX can actually do with this spectrum. 314.400000 319.920000 The answer is something that could fundamentally change how we think about mobile service, 319.920000 321.840000 that is, direct to sell. 321.840000 327.920000 Today, Starlink is already serving millions of customers in more than 100 countries. 328.560000 331.120000 But to get connected, you need special hardware. 331.120000 335.280000 That white pizza box dish and a clear view of the sky. 335.280000 338.480000 It works, but it's not exactly pocket friendly. 338.480000 341.840000 Direct to sell flips that model on its head. 341.840000 348.000000 Instead of needing extra equipment, your existing smartphone could connect directly to a Starlink 348.000000 353.040000 satellite overhead. No dish, no bulky gear, just your phone. 353.040000 356.560000 This could be a game changer in some major ways. 358.080000 359.680000 It provides coverage anywhere. 359.680000 366.080000 Imagine driving across the sketch one, hiking in the Rockies, or sailing off the coast of BC, 366.080000 369.360000 and never once seeing no service on your screen. 369.360000 372.080000 It provides disaster resilience. 372.080000 375.920000 When cell towers go down during an East Coast hurricane, 375.920000 382.160000 mid-country wildfire, or a West Coast earthquake, satellites can keep people connected 382.160000 383.440000 when it matters the most. 384.560000 390.320000 Global simplicity. Travelers wouldn't need to swap SIM cards or pay outrageous roaming fees. 390.320000 395.680000 In theory, your phone could stay connected seamlessly, no matter where you are in the world. 395.680000 401.840000 Now, to be fair, none of this is science fiction, but it's not quite plug and play either. 401.840000 403.600000 There are some challenges. 403.600000 407.120000 The service would most likely start small. 407.120000 413.280000 Things like basic text messaging, emergency alerts, and low bandwidth data. 414.240000 419.520000 The real leap later would be streaming video or high speed internet to direct to your phone. 419.520000 424.400000 This would undoubtedly take more satellites, better ground infrastructure, 424.400000 426.880000 and updates to handsets. 426.880000 432.560000 And yes, regulators will have a say before this gets rolled out at any scale. 432.560000 436.480000 But SpaceX isn't starting from zero either. 436.480000 441.680000 They've already announced a partnership with T-Mobile in the US to test the service. 442.560000 447.280000 Early demos showed ordinary smartphones connecting to satellites 447.280000 449.600000 without any special modifications. 449.600000 454.000000 That's a proof point. This technology works. 454.000000 459.680000 When you combine that with the spectrum hall from EchoStar, suddenly, 459.680000 466.800000 SpaceX has both the technology and the legal right to deliver direct to cell at scale. 466.800000 471.360000 That's why this $17 billion deal matters so much. 472.240000 478.880000 It's not just buying airwaves, it's buying the keys to the next generation of mobile connectivity. 478.880000 485.600000 If you're one of the big telecom carriers, this deal should have you paying very close attention. 485.600000 494.000000 For decades, companies in the US like AT&T, Verizon, or in Canada like Rogers and Bell 494.000000 499.040000 have built their businesses on towers, fiber, and spectrum auctions. 499.840000 506.800000 They've poured billions into infrastructure, lobbying regulators, and locking down spectrum licenses. 506.800000 513.680000 The result? They control who gets coverage at what price and where the dead zones are. 513.680000 518.640000 Now along comes SpaceX with a model that skips most of that. 518.640000 527.040000 No new towers, no long fiber runs, just satellites in low-Earth orbit connecting directly to phones. 528.000000 533.280000 If it works, SpaceX could offer coverage in places telcos have ignored for years. 533.280000 540.160000 Rural towns, highways, remote communities, without having to justify the return on investment. 540.160000 545.040000 That's bad news for carriers who've used those gaps as a reason to say, 545.040000 551.040000 you're not profitable enough. And it doesn't stop at rural coverage. 551.040000 555.360000 Direct to cell has the potential to chip away at urban markets too. 556.160000 561.680000 Imagine if your phone could flip seamlessly between a cell tower and a starlink satellite 561.680000 567.120000 without you even noticing. You'd suddenly have more choice about who provides your service. 567.120000 572.720000 Carriers lose leverage when customers have an alternative path to connect. 572.720000 579.760000 It's not just telcos who need to watch out. Cloud giants like Amazon Web Services, 579.760000 584.560000 Microsoft Azure, and Google Cloud have been busy cozying up to the carriers, 585.040000 590.640000 offering edge computing and 5G infrastructure to power the next wave of mobile services. 590.640000 598.480000 If SpaceX can own both the spectrum and the satellites, they're not just another customer of cloud, 598.480000 603.920000 they could become a competitor in delivering the backbone of global connectivity. 603.920000 611.440000 And then there's the smaller satellite players. Companies like AST Space Mobile, 611.440000 616.320000 and Link's Global have been working on direct-to-phone satellite systems for years. 616.320000 622.320000 They've done impressive demos, but they don't have thousands of satellites already in orbit. 622.320000 628.720000 SpaceX does. And now SpaceX has a spectrum to make it legal and scalable. 628.720000 636.480000 That leap frogs them way ahead. So let's be clear. This isn't just a big spectrum deal. 636.480000 643.520000 It's a shot across the bow at multiple industries, telecom, cloud, and even other satellite startups. 643.520000 649.680000 And the ones who should be most nervous, the telcos who have spent decades assuming they 649.680000 657.280000 owned the customer relationship. This Starlink Echo Star Deal is an industry-wide wake-up call. 657.280000 663.920000 Now, before we crown SpaceX, the winner of the wireless wars, let's talk about the challenges. 664.640000 669.360000 Because as ambitious as this deal is, there are some real hurdles to clear. 669.360000 674.960000 After some thought, I've come up with five challenges that SpaceX will need to focus on. 674.960000 681.440000 The first being regulation. Spectrum deals aren't simple transactions. 681.440000 687.760000 They get scrutinized by the FCC in the US and other regulators worldwide. 687.760000 693.200000 Governments don't like concentrated power over something as essential as spectrum. 694.000000 699.680000 SpaceX will need approval. And you can bet that traditional carriers will push back hard. 699.680000 703.040000 Lobbyists are already sharpening their arguments. 703.040000 710.720000 Secondly, the debt. SpaceX isn't just buying spectrum. It's also agreeing to cover 710.720000 716.320000 Echo Star's interest payments to the tune of about $2 billion over the next few years. 716.320000 723.840000 SpaceX is well-funded. But let's not forget, they're running multiple capital-hungry businesses 724.000000 730.640000 at once. Rockets. Starlink. Starship. Mars ambitions. And now this. 730.640000 737.040000 Cash flow is always going to be a factor. Third is the technology itself. 737.040000 743.360000 Connecting a smartphone to a satellite sounds relatively simple, but it's an engineering nightmare. 743.360000 749.600000 Satellites move fast across the sky. Phones have small antennas designed for towers, 749.600000 756.400000 not objects orbiting 500 kilometers overhead. Latency, handoffs between satellites, 756.400000 762.720000 interference with terrestrial networks. These are all problem SpaceX will have to solve at scale. 762.720000 768.800000 And let's not forget about the user experience. The first version of direct-to-sell won't 768.800000 776.160000 be blazing fast 5G. I'm guessing that early deployment will likely be limited to probably 776.160000 782.800000 text messages and emergency alerts. That's valuable, but it's a far cry from streaming YouTube 782.800000 788.640000 or running Zoom calls from a mountain trail. It could take years before the service feels like 788.640000 796.560000 a true alternative to your carrier. And finally, there's competition and timing. Other companies 796.560000 804.480000 are not standing still. AST Space Mobile has already shown live video calls over satellites 804.480000 810.720000 using unmodified smartphones. Link's Global has run early texting trials. 810.720000 816.880000 Even Apple has dipped their toes in with emergency SOS via satellite on the iPhone. 816.880000 822.080000 And who knows what they're about to announce tomorrow, Tuesday, September 9th. 822.080000 829.440000 SpaceX has a massive advantage with its satellite fleet, but it's not guaranteed they'll be first 829.440000 836.800000 to market with a polished product. So, yes, SpaceX has the money, the satellites, and now the spectrum. 836.800000 843.120000 But the road to delivering a smooth, reliable, and affordable direct-to-sell service is long 843.120000 850.080000 and filled with obstacles. That said, if there's one company with a track record of tackling impossible 850.080000 859.120000 problems, it's SpaceX. Reusable rockets were once a fantasy. Now they're routine. That's the reason 859.120000 865.120000 people are paying attention. Because they have pulled this off before. I like to gamble every now and 865.120000 873.200000 then. I don't think I would ever bet against Elon Musk. What SpaceX just did isn't about solving 873.200000 879.040000 today's dropped calls or patchy coverage. It's about planting a flag in the future of wireless. 879.040000 885.760000 For over a century, our communications infrastructure has followed the same model. Bill towers, 885.760000 892.240000 run cables, and expand one region at a time. This deal is a signal that the next chapter could be 892.240000 898.720000 written in orbit. Instead of thinking about networks as something local, tied to your carrier, 898.720000 905.280000 your geography, or your country, imagine a network that starts above the clouds and looks down on 905.280000 913.840000 the whole planet at once. That is what this $17 billion move is all about. It's SpaceX saying, 913.840000 918.960000 we don't just want to beam internet to a dish on your roof. We want to own the airwaves that 918.960000 926.320000 connect every phone on Earth. If they pull it off, the implications ripple far beyond better bars 926.320000 933.040000 on your screen. It could redefine who the real gatekeepers of connectivity are. It could reshape 933.040000 939.280000 competition, not just for telecoms, but for cloud companies, hardware makers, even governments. 940.240000 946.560000 And whether you're in downtown Toronto, or the middle of Alaska, that shift touches you because 946.560000 952.720000 connectivity is no longer a luxury. It's as essential as electricity and clean water. 952.720000 960.400000 That's why this story matters. It's not just about Elon Musk or spectrum licenses. It's about the 960.400000 966.480000 foundation of the next era of global communication. And I think that's where we'll leave this today. 967.120000 973.920000 A $17 billion spectrum deal that could push SpaceX from the business of rockets and satellites 973.920000 980.400000 into the heart of the wireless industry. It's bold, it's risky, and it has the potential to reshape 980.400000 986.560000 how the world connects. Thank you for listening to Tech It For Me. I'm Mike Madole and remember, 986.560000 992.240000 if it feels like Tech is moving fast, that's really because it is. Until next time. 993.120000 998.661187 Tech It From Me is an independent and solo-produced podcast.