Mobile business, “Mask Empire” is serious about satellite and terrestrial networks

[New York Current Affairs] SpaceX, an American space and artificial intelligence (AI) company led by American businessman Elon Musk, has announced that it will obtain a license for frequency bands used for mobile phones. The company, which provides the satellite communications network service ``Starlink,'' emphasized, ``We will be the first network operator to operate both satellite and terrestrial networks.'' This is likely to be an opportunity for the company to add the mobile phone business to the ``Musk Empire,'' which is involved in space development, electric vehicles, and other fields.

Radio waves in the 800 MHz band, which SpaceX announced on the 8th, can reach long distances and are less likely to be blocked by obstacles such as buildings or walls. It is easy to connect indoors or underground, and is part of a frequency band called the ``platinum band'' in Japan.

Morgan Stanley, the US financial giant, pointed out that this announcement is a big step for SpaceX to build a mobile communications network. Although the acquisition price has not been disclosed, he said, ``I wouldn't be surprised if it was close to $8 billion (approximately 1.3 trillion yen).''

SpaceX, which has been operating Starlink, which is highly convenient in depopulated areas, but has remained in a "complementary" position, will be making a full-scale entry into the mobile phone market, which will have a large impact on the stock market. On the 9th, the stock prices of the three major US telecommunications companies (AT&T, Verizon Communications, and T-Mobile US) plummeted. On the other hand, stocks of companies called ``tower companies'' that handle base station maintenance were bought.

However, some believe that it will take time for SpaceX to develop its business in earnest. Morgan Stanley analyzes that there is insufficient spectrum and infrastructure needs to be developed to expand service to densely populated areas. ``We still have a long way to go before we can compete head-on with major telecommunications companies.''