BT and Elon Musk’s Starlink are in discussions over a satellite-based broadband service. This could help combat the problem of rural black spots.
The Telecoms giant is currently testing Starlink technology in its Adastral Park Research Centre near Ipswich, as it looks for ways to provide connections to difficult-to-reach places.
Mr Musk’s company operates a network consisting of approximately 5,000 satellites. These satellites orbit 350 miles above Earth and beam down messages.
BT is considering using its network to provide broadband services. However, the company’s bosses also want to use the technology to boost mobile signals.
Former telecoms monopoly signed previous ad-hoc deals with Mr Musk’s company outside of the UK. No formal agreement has been reached yet in Britain.
If BT signs a direct-to-mobile deal with Starlink, it may be required to obtain a special license from the regulator Ofcom.
The talks are taking place amid concerns over the future of OneWeb, a satellite company based in London. BT signed a partnership with OneWeb in 2021.
OneWeb received a £400m bailout from the Government in the midst of the pandemic, amid fears that China might try to take over the struggling company.
The value of the taxpayers’ stake has been more than halved due to a drop in the share price.
Starlink conducted its first successful satellite test this week to send and receive texts messages using unmodified smartphones.
The focus of the talks is BT’s Business offering. This allows the company to provide mobile and broadband services to remote sites , such as oil rigs or mines.
The technology will also be made available to consumers to fill in the gaps left by traditional masts and cables.
The government has teamed with mobile operators to create a £1bn (£1bn) plan that will tackle rural “not-spots”.
The venture suffered a major setback when revealed in the past year that Virgin Media O2, Virgin Media Three, and Vodafone had warned that the first phase of the plan would be delayed up to two-years.
BT has more masts on mobiles than any of its competitors and contributes to phase one independently. It is believed to have reached the initial goal of covering 88pc (or the UK landmass) six months earlier than scheduled.
Satellite technology is gaining in popularity, as consumers and businesses look for connectivity solutions.
Starlink is widely used by Ukrainian forces in order to provide battlefield communication during the war against Russia.
According to Ofcom, at the end last year, 42,000 UK customers were connected to Starlink’s network, an increase of more than tenfold from just 13,000 users in 2022.
Starlink hardware, also known as a “terminal”, is available for around £450. Users pay a £75 monthly fee.
Sources claim that Mr Musk’s firm has been pressing BT to sell terminals directly to its customers. It is believed that the mobile network operator doesn’t want to be a reseller, but would rather use satellite technologies to improve its services.
Virgin Media O2, BT’s rival, has conducted Starlink trials in a rural area of Wales. However, the two companies do not maintain a relationship. Vodafone is testing satellite services in Texas with AST Space Mobile, Amazon and Texas-based AST Space Mobile.