Could Elon Musk fix Britain’s rural connection gaps? BT is mulling a deal with Starlink
BT is in talks with Starlink, Elon Musk’s internet satellite ‘constellation’, as it tries to plug connectivity gaps in remote areas across the UK.
The telecoms giant is exploring the use of Starlink’s system of around 5,000 satellites, orbiting 350 miles above Earth, to provide broadband services and improve mobile signals.
BT is currently testing the Starlink equipment at its Adastral Park research and development centre in Suffolk.
No formal agreement has been made yet in Britain and BT may have to seek regulatory approval from Ofcom before it can proceed with a Starlink deal.
Satellite technology is becoming increasingly important for the UK’s heightened connectivity needs and it is especially useful in locations where it is challenging to build physical masts and cables.
Britain’s largest telecoms provider could use Starlink, which is being built by Musk’s SpaceX, in both its business and consumer divisions.
It comes amid a troubling period for BT’s current satellite partner, OneWeb, which merged with French space company Eutelsat in September last year.
The London-based firm, once touted as a rival to Starlink by former Prime Minister Boris Johnson, received a £400m government bailout in return for a 33 per cent stake during the pandemic to stop it falling to Chinese hands.
But, since the deal with Eutelsat, the value of the UK government’s stake has more than halved since as the company’s share price tanked.