Iridium, Globalstar Handset Services Not Raising Regulatory Concerns
Globalstar and Iridium shouldn't face notable regulatory hurdles or opposition to their direct-to-handset services, we were told. Iridium said last week it had inked a smartphone service provider agreement. In an SEC filing, it said the deal could mean revenue in the form of development fees, royalties and network usage fees. Apple debuted its Globalstar-enabled SOS emergency messaging service on iPhone 14s in November (see 2211100005).
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Globalstar and Iridium are using mobile satellite service spectrum, while AST SpaceMobile and Lynk Global -- which got EchoStar opposition (see 2206290004) -- are using terrestrially allocated spectrum. The latter use raises risks of interference with adjacent bands' operations, a satellite lawyer said. Globalstar and Iridium don't need FCC approval for the services they provide, and authorizing delivery to handsets shouldn't be a problem, she said. The same is true for other nations as long as nothing is inconsistent with their authorizations for the landing rights they have, she said.
The big regulatory concern with direct-to-handset service will be the lack of rules about use of terrestrial spectrum in space, said spectrum and satellite consultant Tim Farrar. Power limits applicable to terrestrial services are potentially much more stringent than those on satellite services, and that raises the potential for regulatory conflicts about the advantage of using terrestrial licenses and terrestrial power limits, he said.
Iridium's deal is likely with Samsung, William Blair analyst Louie DiPalma wrote investors Tuesday. He said Iridium's board initiating a dividend last month is "a sign that the smartphone technology works and that the contract is lucrative." Iridium connectivity "could be a mainstay in high-end Samsung smartphones for the next decade" and could move Iridium from being a niche satellite operator "to a mass market communications provider," he said. Apple might spend more than $2 billion over the next 10 years for its Globalstar-enabled service, he said, saying recurring revenue for Iridium could be well in excess of the $20 million it will likely get in year one.
Globalstar and Iridium are already licensed to operate in numerous countries, and handset authorizations their partner handset makers will need to get should be relatively straightforward, said Farrar. He said China and India will be exceptions to that, with China already not allowing Apple to sell iPhone 14s with the satellite component in them and Globalstar today not covering India.
Apple has taken a cautious approach to its emergency messaging service, limiting it to safety purposes though it has the capacity "to do a lot more," such as messaging, Farrar said. He said that cautious approach cuts down on the risk of terrestrial cellular operators being opponents. He said Samsung would likely take a similar approach to avoid cellular carrier objections.
Beyond Iridum and Globalstar, satellite partners for such services are limited, Farrar said. Huawei is working with China's BeiDou global navigation satellite system constellation to provide one-way emergency messaging, he said. He said other satellite options include EchoStar and Omnispace, though they don't have fully global capabilities, and Inmarsat via its L-band spectrum. He said it was unsurprising a handset jumped on Iridium "to get them locked down" considering the lack of choices. SpaceX has made noise about direct-to-handset service via the 2 GHz band or 1.6 GHz band, but it doesn't seem to be seriously pursuing access to those bands, he said.