#FINANCIAL_LITERACY

Up, up, and away… SpaceX has teamed up with T-Mobile in launching its first satellites designed to supercharge cell coverage from space (SpaceX is calling it “direct to cell” service). Most people’s bars are powered by cell towers on land, but space satellites can also beam signals directly to phones. While the tech isn’t meant to replace land towers, it can help in emergency situations like when power’s down.

• Linked up: T-Mobile’s Starlink satellites will help power the “un-carrier”’s direct-to-cell service starting with text messages (voice and data should follow).

• 5G in Fiji: Starlink hopes its satellites will boost global cell coverage and eliminate “dead zones” everywhere, from the Grand Canyon to your folks’ attic.

• Window seat WiFi: In addition to its cell-data service, Starlink’s also teamed up with Hawaiian Airlines and Qatar Airlines to provide free WiFi on long-haul flights.

Cell towers are soo 2023… Apple kicked off the phone-to-satellite craze in 2022, investing $450M to let iPhone users send emergency texts through mobile satellite company Globalstar (picture: sending an SOS from your desert campsite). In September, AT&T connected the first satellite 5G phone call with satellite partner AST SpaceMobile, but has yet to roll out the feature at scale. Verizon announced plans to work with Amazon’s Project Kuiper satellites to offer a similar service in 2021, but there haven’t been updates.

Phone companies are going back to basics… with connectivity when you need it. While the size of the phone-to-satellite market is TBD, the tech could connect people still struggling with poor connectivity — especially in dangerous situations. Smartphone makers hope that adding satellite connectivity will encourage consumers to upgrade. Deloitte forecasts that 200M+ smartphones with satellite-connecting capabilities will be sold this year.

Capybara slay… Irish budget airline Ryanair (known for its colorful social media presence) announced yesterday that Booking.com, Kayak, and other travel-booking sites stopped selling its flights. Ryanair clapped back, calling it a “welcome removal” and alleging the services are “pirates” that overcharge and scam customers. While Ryanair said it expects the block would hurt bookings in the short term, it plans to retain customers by lowering fares and doesn’t expect a significant full-year impact. Possible reasons for the removal:

• Policy shift: An Irish high court ruled last month that “screen-scraper” Flightbox unlawfully pulled data from Ryanair for third-party sites to use for bookings.

• Corporate beef: Ryanair’s been duking it out in US courts with Booking.com since 2020 over accusations of screen-scraping.

Money in the middle… Third-party sites make money mainly by taking a cut of booked travel from airlines, hotels, and customers in exchange for the sales they facilitate. Expedia made $100M in revenue from airfare last quarter — and $3.2B from hotels. Some airlines want customers to book exclusively through their sites: Southwest makes a point of showing fares only on its website (not even on Google Flights, which doesn’t charge its partners). Other airlines incentivize customers by offering more miles and options when they book directly.

Flying solo could have setbacks… Airlines that don’t appear on third-party aggregators could lose out on customers who don’t want to open 12 tabs to price-compare. Ryanair had a banner year in 2023 thanks to booming flight demand, but if vacays cool off, losing its low-priced visibility on aggregators could hurt. On the other hand, customers willing to book directly are more likely to be loyal, repeat flyers.