MW Elon Musk's Starlink is battling Globalstar to rule the skies. Here's the likely winner.

By Michael Brush

Apple partners with a former CEO of Qualcomm, while T-Mobile joins forces with the CEO of Tesla and SpaceX

Smartphones are great until you hit a dead zone in an emergency. That should no longer be an issue when T-Mobile $(TMUS)$ this summer debuts a satellite-based phone service offering connections in remote areas - and as a fallback if a natural disaster takes out regular service.

Behind the scenes, the T-Mobile rollout will advance a battle between two tech geniuses.

In one corner, Elon Musk, who needs no introduction. His Starlink satellite network, launched by his SpaceX, is the engine behind T-Mobile's service.

In the other corner is Paul Jacobs. The name might be unfamiliar, but Jacobs is no outsider. He has played a major role in the communications revolution. If you are reading this on a smartphone, you have Jacobs to thank.

The former chief executive of Qualcomm $(QCOM)$ (his father Irwin co-founded the company in 1985), Jacobs helped advance code division multiple access (CDMA) technology, which supports smartphone connectivity to this day. As CEO of Qualcomm from 2005 to 2014, Jacobs helped boost the company's annual sales to $25.7 billion from $5.7 billion; during his tenure, Qualcomm added around $50 billion in market value.

Jacobs is now CEO of Globalstar $(GSAT)$. The company's network of satellites supports remote smartphone service offered by Apple $(AAPL)$ and competes directly with T-Mobile Starlink.

It's important to have reasonable expectations about satellite smartphone connectivity as it gets more attention. You won't be using satellite service anytime soon to watch streaming movies on a backpacking trip. The data pipes are too small. That may change over time, but initially these remote-area services will mainly support text messaging.

T-Mobile subscribers want the service anyway. "We have had massive customer interest," Mike Katz, T-Mobile's president of marketing, strategy and product, said in a recent interview. He said hundreds of thousands of customers have signed up for a free beta version of T-Mobile Starlink, advertised during this year's Super Bowl. The official paid version should launch in July.

Verizon Communications $(VZ)$ and AT&T $(T)$ also offer satellite-based smartphone connections, but their services are more limited. For now, this is a Globalstar vs. Starlink contest through proxies Apple and T-Mobile. Apple declined to share how many people use its satellite phone service. Starlink also declined to comment on its T-Mobile relationship.

Here are some of the pros and cons of the communications solutions that Musk and Jacobs are offering:

T-Mobile Starlink works on more phones: The service will function on any phones made in the past four years, says T-Mobile's Katz. And you won't have to be a T-Mobile customer to get the service. T-Mobile makes it available to Verizon and AT&T customers.

Globalstar's service is available on Apple 14 phones and up. T-Mobile customers with Apple phones have access to both T-Mobile and Globalstar's services.

T-Mobile's service costs more than Apple's: But it isn't too expensive, and it's free to many subscribers. T-Mobile customers, as well as Verizon and AT&T customers, will pay $10 a month. The service will be free to subscribers with T-Mobile's Experience More, Experience Beyond and Go5G Next plans.

At Apple, the Globalstar system is free for iPhone users for two years after phone activation.

T-Mobile's system has more satellites: T-Mobile's service runs on a network of roughly 550 Starlink satellites. Globalstar will have 32 satellites operating by the end of the year, and plans to expand its reach by at least 50 more.

But it isn't clear that T-Mobile's higher satellite count should give it an advantage. That's because Globalstar's satellites fly much higher, so they cover more territory below. Globalstar's satellites fly at 870 miles above the Earth, whereas Starlink satellites orbit at a height of about 310 miles.

Apple is able to offer satellite-based phone service in just about any country it wants.

Apple's service seems like a better option for travelers: Globalstar owns its own mobile satellite-service spectrum, and it's available everywhere.

"We have global spectrum. It is a contiguous band around the world," Jacobs said in a recent interview. So Apple is able to offer satellite-based phone service in just about any country it wants. It's available now in Australia, Austria, Belgium, Canada, France, Germany, Ireland, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Portugal, Spain, Switzerland, the U.K. and the U.S.

T-Mobile's system will only operate in countries where Starlink has an agreement with a local carrier. So far, that's the U.S., Japan, Australia and New Zealand. This service may be a challenge to roll out in crowded regions like Europe since the signal handoff among so many different local carriers could be tricky.

A common customer question is whether the satellite services are available on cruise ships. T-Mobile says its service is available in territorial waters off the coast of those countries where it's available. If you are in territorial waters of a country where the local carrier has no Starlink agreement, the T-Mobile system won't work. Globalstar's spectrum is available off the coasts of countries where Apple's service is available, but it's not clear how far offshore the signal will reach.

T-Mobile's service automatically connects: That's convenient because it means the system regularly downloads messages. With Apple's system, you have to open an app to connect.

Comparable satellite services. The stocks - not so much.

Whether both of these systems can peacefully coexist is too close to call. As for the stocks, there's a good chance Globalstar wins out - for two key reasons.

First, Globalstar is guiding stock analysts for higher growth. It projects 2025 sales of $260 million to $285 million, which is 9% year-over-year growth at the midpoint. It maintained that guidance as recently as May 8 in its earnings call. Beyond satellite, Globalstar should see sales growth from an "Internet of Things" service that helps companies track and manage assets like warehouse robots and farm equipment.

T-Mobile guides for 5% Ebitda growth this year to between $33.2 billion and $33.7 billion. It projects 6% service revenue growth. Those are solid projections, too, especially for a large company. But T-Mobile stock is up 55% in the past year, so a lot of its healthy growth may be priced in. In contrast, Globalstar stock is down slightly in the past year.

Second, Globalstar has a better insider buying profile. In March, director James Monroe purchased shares worth $7.4 million in the $21-$22.50 range, following a separate $6.8 million stock purchase in December. That's a big bet, especially at a smaller company like this. There's no recent insider buying at T-Mobile, although that is not necessarily a negative.

Michael Brush is a columnist for MarketWatch. At the time of publication, he owned Globalstar, and Brush has suggested Globalstar in his stock newsletter, Brush Up on Stocks. Follow him on X @mbrushstocks.

Also read: Competition for Elon Musk's SpaceX? Amazon has satellites too.

-Michael Brush

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May 20, 2025 08:05 ET (12:05 GMT)

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