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 Apple only 72 hours to decide, warning that if his offer was rejected, he would launch a satellite feature compatible with iPhones.
As we now know, 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.
In this space, SpaceX only thinks about Apple as a serious competitor and Apple only thinks about SpaceX as a serious competitor.
—Tim Farrar, president Telecom, Media & Finance Associates, May 2025
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.
This shell game serves one purpose: to block competitive entry in frequencies Globalstar has never meaningfully used.
—David Goldman, SpaceX’s vice president of satellite policy, 2023
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 believe that SpaceX is ahead of Globalstar. The report has also revealed that Apple hasn’t started charging for the satellite feature is because 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 teamed up 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.
