Report reveals why T-Mobile users with Android phones should be grateful to Apple
In a detailed report, The Information chronicles Apple's satellite efforts over the years. The company first launched Project Eagle, which revolved around teaming up with Boeing to roll out satellite internet connectivity to iPhones and homes. The project would have allowed Apple to reduce its reliance on carriers. Apple spent approximately $36 million on the project and wanted to introduce the service in 2019. The company eventually shelved the project. After that, Apple started exploring other wireless opportunities that would allow it to differentiate its offerings. The company held talks with numerous satellite companies, including OneWeb to launch a satellite home internet service. It also engaged in discussions with EchoStar to bring satellite connectivity to the iPhone. Nothing came out of those efforts, chiefly because Apple wasn't sure if it wanted to proceed.When Apple began considering Globalstar as a partner for iPhone's satellite feature, Musk caught wind of its plans. This was three years ago. Musk said that he would exclusively provide satellite connectivity to iPhones for 18 months if the company would pay it $5 billion. After the exclusivity period ended, Musk suggested a yearly payment of $1 billion.Musk only gave Apple 72 hours to decide with a warning that if his offer was rejected, he would launch a satellite feature that could work with iPhones.As we know now, Apple ended up rejecting the offer and Musk followed through on his threat by announcing a partnership with T-Mobile in August 2022, two weeks before the iPhone 14 was announced.
—Tim Farrar, president Telecom, Media & Finance Associates, May 2025 This worsened Apple's relationship with Musk, who has voiced criticism of Apple on various issues. He has even toyed with the idea of making his own phone whilst acknowledging that it's not an easy feat.
SpaceX has been trying to stall Apple's satellite expansion effort. The company has objected to Globalstar's use of licensed spectrum and accused it of grabbing more than its fair share of spectrum. If SpaceX succeeds, the iPhone's satellite service may stop working.
—David Goldman, SpaceX's vice president of satellite policy, 2023 Apple and SpaceX have also tangled over how much the Cupertino giant would support the rocket company's partnership with T-Mobile . Musk allegedly wanted to enable support for its satellite feature on a broad range of iPhone models, but Apple didn't want variants older than the iPhone 14 to have it. Apple also isn't seemingly happy about the fact that compatible iPhones will default to Starlink's service instead of using its Globalstar-powered solution when T-Mobile officially rolls out the feature in July. Meanwhile, Apple execs remain uncertain about their satellite initiative, which is costing it hundreds of millions of dollars annually and some have suggested killing it off. Apple is careful to bill its satellite feature as a complement to carrier offerings. The company also backed away from a plan set in motion in 2023 that would have used satellites to deliver internet service to iPhones in remote areas.Some former employees are also of the view that SpaceX is ahead of Globalstar. The report has also revealed that the reason why Apple still hasn't started charging for the satellite feature is that it fears that the US government might start regulating it like a telecommunications carrier if it does. This could force it to build "build back doors into communication services like iMessage."
Although T-Mobile 's rivals AT&T and Verizon have also entered partnerships with satellite companies to bring satellite connectivity to their users, the magenta carrier is far ahead, which is why Android users should be grateful that Cook rejected Musk's offers.
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