FCC approves T-Mobile and SpaceX's plan to provide service from space. Will satellites replace cell towers?
Dec 12, 2024
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On November 26th, 2024, the FCC approved SpaceX and T-Mobile's plan to provide wireless service facilitated satellites in space.
This announcement follows upon the (FCC) granting T-Mobile and SpaceX special temporary authority (STA) to operate the service after the devasting Hurricanes of Helene and Milton this past fall.
People we have discussed the matter with have similar questions:
Do satellites have the ability to replace cell towers?
In short- no.
Satellite cellular service will undoubtedly complement existing service, offering tremendous potential and demonstrable benefits to consumers worldwide. While the service currently supports texting and limited data usage, it's important to note that it doesn't yet provide the same quality of service that customers are accustomed to with traditional cellular networks. Speed and consistency are key.
You can drive 41 hours straight to get to New York, NY from Los Angeles California and it will get you there, but most people opt for the 6 hour plane ride.
Should a landlord with a cell tower on their property be concerned about their tenant potential decommissioning and terminating their cell tower lease due to satellite technology?
No.
We've seen instances where companies have attempted to buy out cell tower leases or secure long-term easements, often citing satellite technology as a potential reason. However, it's perplexing why organizations would invest hundreds of millions of dollars annually to acquire these assets, seemingly devaluing the importance of traditional cell towers.
Additional reading:
Satellites Are Taking Off, But Cell Towers Are Sticking Around
5G will carry 80 percent of mobile data traffic globally in 2030
https://www.ericsson.com/en/reports-and-papers/mobility-report/dataforecasts/mobile-traffic-forecast
#technology #celltower celltowerlease #wirelessinfrastructure #spacex #tmobile
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