Back in 2015, Apple approached Boeing to work on a satellite internet service akin to Starlink. The ambitions of the project were to beam the internet down to iPhone users and act as home internet for people who were willing to buy a receiver.
However, The Information claims Tim Cook got worried about the scale of the project competing with telecom carriers around the world. Apple has a strong business relationship with the carriers and jeopardizing that without a full backup plan would be foolish.
Regardless of the scope changing of the project, Apple still launched satellite connectivity in 2022 with the iPhone 14 and expanded on it in the years since to offer standard texting instead of just emergency services.
Just before launching that service, Apple was reportedly approached by Elon Musk to give Apple 18 months of Starlink satellite exclusivity for US$5 billion (roughly C$6.8 billion) upfront. With a billion more each year, the service was used. According to The Information, Musk gave Apple 72 hours to decide and said if it didn’t agree, he’d launch a similar feature on his own that would work on all phones.
Apple rejected the offer. Musk did, however, reach a deal with T-Mobile in the U.S. to offer satellite messaging in areas without proper LTE/5G coverage. However, this only started in beta in 2024 and will fully open in July 2025. So far, it’s already had a price cut from US$15 to $10 (roughly C$20 to $13).
The report claims that Apple has yet to charge for its satellite features because it’s worried about being regulated like a telecom carrier. If that happened, it could force Apple to build a backdoor into iMessage and other apps it can keep secure since telecoms need to comply with federal laws regarding government surveillance.
Furthermore, the tech company worries that because of all the regulations and because traditional carriers are getting to the satellite space themselves, Apple might discontinue its homegrown satellite ambitions. However, there are separate rumours that the Apple Watch Ultra 3 is going to launch with satellite connectivity this year, so I expect Apple to keep its service around until more carriers around the world offer competing services, not just T-Mobile.
Source: The Information
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