SpaceX and T-Mobile Unveil Satellite Plan to End Cellphone 'Dead Zones'

T-Mobile CEO Mike Sievert (L) said he expects the new service to be free of charge on most cellphone plans. (Reuters)
T-Mobile CEO Mike Sievert (L) said he expects the new service to be free of charge on most cellphone plans. (Reuters)
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SpaceX and T-Mobile Unveil Satellite Plan to End Cellphone 'Dead Zones'

T-Mobile CEO Mike Sievert (L) said he expects the new service to be free of charge on most cellphone plans. (Reuters)
T-Mobile CEO Mike Sievert (L) said he expects the new service to be free of charge on most cellphone plans. (Reuters)

Elon Musk's SpaceX satellites will connect directly to T-Mobile cellphones to provide service access even in the most remote places beyond the reach of cell towers from next year, the two companies announced Thursday.

The new service, which will work on existing cellphones and utilize SpaceX's network of thousands of Starlink satellites in Earth's orbit, will begin offering text messaging services from late 2023, with voice calls and data services expected to follow later, AFP said.

"The important thing about this is that it means there's no dead zones anywhere in the world for your cell phone," said Musk, in an announcement event held at SpaceX's Starbase facility in Texas.

Musk said the service will save lives, giving the example of hikers who get lost and are currently unable to call for help.

"We will no longer read about these tragedies that happened where people get lost and if only they could have called for help they would be OK."

Though satellite internet has existed for years, users currently require specialized hardware, such as Starlink terminals.

"This won't have the kind of bandwidth that a Starlink terminal would have, but it will enable texting, it will enable images, and -- if there aren't too many people in the cell zone -- you can even potentially have a little bit of video," said Musk.

T-Mobile CEO Mike Sievert said he expects the new service to be free of charge on most cellphone plans, although there could be a fee for users on low-cost packages.

"It's a lot like putting a cellular tower in the sky. Just a lot harder," he said.

Competition in the satellite internet market is rapidly intensifying.

Amazon founder Jeff Bezos recently announced he intended to launch some 3,200 satellites.

Public institutions are also looking to get in on the act.

China has a plan to launch a constellation of 13,000 satellites called Guowang and the European Union wants to deploy roughly 250 by 2024.

While next year's beta test launch will be restricted to the United States, Sievert said his company expects to expand to overseas markets with reciprocal roaming deals.



Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.