SpaceX chief engineer Elon Musk raises his phone during a joint news conference with T-Mobile chief executive Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, US. Reuters
SpaceX chief engineer Elon Musk raises his phone during a joint news conference with T-Mobile chief executive Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, US. Reuters
SpaceX chief engineer Elon Musk raises his phone during a joint news conference with T-Mobile chief executive Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, US. Reuters
SpaceX chief engineer Elon Musk raises his phone during a joint news conference with T-Mobile chief executive Mike Sievert at the SpaceX Starbase, in Brownsville, Texas, US. Reuters

Elon Musk's SpaceX to end cellphone 'dead zones' and 'save lives' with T-Mobile link up


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Elon Musk's SpaceX satellites will connect directly to T-Mobile cellphones to provide service access even in the most remote places beyond the reach of cell towers from next year, the two companies announced.

The new service, which will work on existing cellphones and utilise SpaceX's network of thousands of Starlink satellites in Earth's orbit, will begin offering text messaging services from late 2023, with voice calls and data services expected to follow later.

"The important thing about this is that it means there's no dead zones anywhere in the world for your cell phone," said Mr Musk, in an announcement event held at SpaceX's Starbase facility in Texas.

Mr Musk said the service will save lives, giving the example of hikers who get lost and are currently unable to call for help.

"We will no longer read about these tragedies that happened where people get lost and if only they could have called for help they would be OK."

Though satellite internet has existed for years, users currently require specialised hardware, such as Starlink terminals.

"This won't have the kind of bandwidth that a Starlink terminal would have, but it will enable texting, it will enable images, and - if there aren't too many people in the cell zone - you can even potentially have a little bit of video," said Mr Musk.

T-Mobile chief executive Mike Sievert said he expects the new service to be free of charge on most cellphone plans, although there could be a fee for users on low-cost packages.

"It's a lot like putting a cellular tower in the sky. Just a lot harder," he said.

Competition in the satellite internet market is rapidly intensifying.

Amazon founder Jeff Bezos recently announced he intended to launch some 3,200 satellites.

Public institutions are also looking to get in on the act.

China has a plan to launch a constellation of 13,000 satellites called Guowang and the European Union wants to deploy roughly 250 by 2024.

While next year's beta test launch will be restricted to the United States, Mr Sievert said his company expects to expand to overseas markets with reciprocal roaming deals.

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Elon Musk in 2022 - in pictures

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Roll of honour 2019-2020

Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

PROFILE OF STARZPLAY

Date started: 2014

Founders: Maaz Sheikh, Danny Bates

Based: Dubai, UAE

Sector: Entertainment/Streaming Video On Demand

Number of employees: 125

Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

UAE currency: the story behind the money in your pockets
The Perfect Couple

Starring: Nicole Kidman, Liev Schreiber, Jack Reynor

Creator: Jenna Lamia

Rating: 3/5

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ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

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Tips for used car buyers
  • Choose cars with GCC specifications
  • Get a service history for cars less than five years old
  • Don’t go cheap on the inspection
  • Check for oil leaks
  • Do a Google search on the standard problems for your car model
  • Do your due diligence. Get a transfer of ownership done at an official RTA centre
  • Check the vehicle’s condition. You don’t want to buy a car that’s a good deal but ends up costing you Dh10,000 in repairs every month
  • Validate warranty and service contracts with the relevant agency and and make sure they are valid when ownership is transferred
  • If you are planning to sell the car soon, buy one with a good resale value. The two most popular cars in the UAE are black or white in colour and other colours are harder to sell

Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com

Updated: August 26, 2022, 6:50 AM