Why Elon Musk’s Starlink has set up a satellite base on a tiny island in the Irish Sea
LONDON — Starlink, the space internet service created in 2015 by Elon Musk’s space transportation firm, SpaceX, has set up a “ground station” on a tiny self-governing island in the Irish Sea to help it beam internet from satellites in low-Earth orbit to homes and offices.
Starlink’s Isle of Man ground station, first reported by The Telegraph late last month, can be seen on the Starlink.sx website.
The government of the Isle of Man said Starlink has been working with local communications provider Bluewave, adding that the pair have together licensed some of the island’s available spectrum.
Bluewave has a ground station just outside the capital of Douglas that can be seen on Google Maps. It acquired the site last year from SES Satellite Leasing. SES pulled out of the Isle of Man last summer.
The site boasts between four and eight radomes, according to a local source who works in the satellite industry that asked to remain anonymous as they’re not permitted to discuss the matter. These are structural, weatherproof enclosures that protect a radar antenna, which sends and receives data transmissions.
“There is a nearly new vacant base station array here linked directly into data centers,” said another source who works in the Isle of Man’s tech industry, who asked to remain anonymous as they’re not directly involved with the Starlink project. The source added that it has “an excellent horizon scan because being surrounded by sea it means there is nothing in the way.”
Measuring 32 miles long and 13 miles wide, the Isle of Man is a British Crown dependency that sits in the middle of the Irish Sea roughly equidistant from England, Scotland, Ireland and Wales. Starlink already has bases in Buckinghamshire and Cornwall in England, and the Isle of Man base will enable the company to provide blanket internet coverage across Britain.
The island’s location, spectrum and existing satellite infrastructure have all contributed to Starlink’s decision, according to the two CNBC sources.
The first source, who received a Starlink kit in May, said the island has a “very efficient” telecoms regulator that’s fast to issue relatively cheap licenses.
“Then of course, the Isle of Man is a low tax jurisdiction so [there is] very little overhead,” they added. “Plus the nation has an adequacy agreement with the EU for GDPR compliance. All this makes the island a good place for satellite or data related services.” GDPR is a set of data protection and privacy regulations introduced by the European Union in May 2018.
The island also has its own spectrum bands that are less busy than those used in the U.K.; the Isle of Man has just 85,000 inhabitants whereas the U.K. has around 70 million.
The Isle of Man Communications and Utilities Regulatory Authority confirmed to CNBC on Thursday that Starlink and Bluewave have been granted a license for “provision of services and location of associated equipment on the island.”
A spokesperson for the island’s Department for Enterprise told CNBC: “This is very exciting and positive news for the Island which will enable the deployment of satellite broadband service on-Island and further afield.”
They added: “Locally, the licensing of available spectrum will provide more choice for local consumers and potential for further jobs within the Island’s telecoms sector.”
SpaceX did not immediately respond to a CNBC request for comment, while Bluewave declined to comment.
What is Starlink?
Starlink ultimately wants to provide the world with faster internet, starting by improving internet access in parts of the world that aren’t currently served by broadband providers.
It allows people to connect to the internet via a satellite dish that is placed on or near a person’s property. The internet is beamed down to the dish via a network of Starlink satellites that have been put into orbit by SpaceX and ground stations.
The company has said it plans to spend $10 billion putting 12,000 small satellites into low-Earth orbit that can beam high-speed, low-latency internet to the ground. It has launched 1,700 so far and the service is being used by 90,000 customers in 12 countries.
“You can assume they’ll need lots of ground stations, in lots of places, to ensure uninterrupted coverage,” Craig Moffett, an analyst at research firm MoffettNathanson, told CNBC.
“The satellites aren’t yet equipped with fiber interlinks, so for now, they need to be in constant contact with the ground. That requires a tremendous number of ground stations,” Moffett added.
Technology
OpenAI gets new $1.5 billion investment from SoftBank, allowing employees to sell shares in a tender offer
Sam Altman, chief executive officer of OpenAI, during an event in Seoul, South Korea, on Friday, June 9, 2023.
SeongJoon Cho | Bloomberg | Getty Images
OpenAI is allowing employees to sell roughly $1.5 billion worth of shares in a new tender offer to SoftBank, CNBC has learned.
The new financing will allow the Japanese tech conglomerate to get an even larger slice of the AI startup, and it will allow current and former OpenAI employees to cash out their shares, two people familiar with the matter told CNBC.
Employees will have until Dec. 24 to decide if they want to participate in the new tender offer, which has not previously been reported, one of the people said. The deal was spurred by SoftBank billionaire founder and CEO Masayoshi Son, who was persistent in asking for a larger stake in the startup after putting $500 million into OpenAI’s last funding round, one of the people said.
The tender offer is not related to OpenAI’s potential plans to restructure the firm to a for-profit business, one of the people said.
OpenAI and SoftBank declined to comment.
The news underscores Son’s interest in the AI space and in backing the most valuable private players. SoftBank was an early investor in Arm, and Son said at a recent conference that he’s saving “tens of billions of dollars” to make the “next big move” in artificial intelligence. He had previously invested in Apple, Qualcomm and Alibaba.
SoftBank’s Vision Fund 2 recently invested in AI startups Glean, Perplexity and Poolside. SoftBank has about 470 portfolio companies and $160 billion in assets across its two vision funds.
The OpenAI investment matches SoftBank’s eagerness to deploy cash, with a capital-intensive business model, a person close to Son told CNBC.
Even without SoftBank’s deep pockets, OpenAI has had no trouble raising billions in cash. Its valuation has climbed to $157 billion in the two years since launching ChatGPT. OpenAI has raised roughly $13 billion from Microsoft, and it closed its latest $6.6 billion round in October, led by Thrive Capital and including participation from chipmaker Nvidia, SoftBank and others.
The company also received a $4 billion revolving line of credit, bringing its total liquidity to more than $10 billion. OpenAI expects about $5 billion in losses on $3.7 billion in revenue this year, CNBC confirmed in September with a person familiar with the situation.
OpenAI employees can cash out
The tender offer will be open to current and former employees who had been granted restricted stock units at least two years ago and have held the shares for at least that long, one of the people said. The unit price of $210 will align with the company’s most recent funding round.
Tender offers have become crucial for tech employees amid a dormant IPO market and skyrocketing company valuations. Private companies rely on such deals to keep employees happy and reduce the pressure to list on public markets. Since OpenAI has no initial public offering immediately on the horizon and a price tag that makes the company prohibitively expensive for would-be acquirers, secondary stock sales are the only way in the near future for shareholders to pocket a portion of their paper wealth.
Databricks is another private company raising money to allow employees to cash out and avoid public markets pressure, CNBC reported this week.
OpenAI took a more restrictive approach to tender offers in the past, with rules allowing the company to determine who gets to participate in stock sales, CNBC reported in June. Current and former OpenAI employees previously told CNBC that there was growing concern about access to liquidity after reports that the company had the power to claw back vested equity.
But the company reversed its policies toward secondary share sales this summer, and it now allows current and former employees to participate equally in annual tender offers.
The company expects to allow more of these secondary sales, and it will need to tap private markets again in the future based on demand from investors and the capital-intensive nature of the business, according to a person familiar with this week’s tender offer.
OpenAI has faced increasing competition from startups like Anthropic and tech giants like Google. The generative AI market is predicted to top $1 trillion in revenue within a decade, and business spending on generative AI surged 500% this year, according to recent data from Menlo Ventures.
Last month OpenAI launched a search feature within ChatGPT, its viral chatbot, that positions the high-powered AI startup to better compete with search engines like Google, Microsoft’s Bing and Perplexity.
WATCH: OpenAI is the definitive consumer brand for AI at this point, says Bedrock Capital’s Geoff Lewis
Workday CEO Carl Eschenbach walks to a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 14, 2023.
Kevin Dietsch | Getty Images
Workday shares slipped as much as 11% in extended trading Tuesday after the human resources and finance software maker issued a quarterly forecast that came in below Wall Street projections.
For the fiscal fourth quarter, Workday called for an adjusted operating margin of 25% on $2.03 billion in subscription revenue. Analysts polled by StreetAccount were looking for a 25.5% margin and $2.04 billion in subscription revenue.
Here’s how the company performed during the fiscal third quarter compared with the consensus among analysts surveyed by LSEG:
- Earnings per share: $1.89 adjusted vs. $1.76 expected
- Revenue: $2.16 billion vs. $2.13 billion expected
Workday’s total revenue grew about 16% year over year in the quarter ended Oct. 31, according to a statement. Subscription revenue totaled $1.96 billion, up around 16%, consistent with the $1.96 billion consensus among analysts surveyed by StreetAccount.
The company reported net income of $193 million or 72 cents per share, up $114 million or 43 cents per share in the same quarter a year ago. The adjusted operating margin for the quarter was 26.3%. StreetAccount had expected 25.4%.
In some parts of the world, Workday is still facing more deal scrutiny than usual, Workday’s finance chief, Zane Rowe, said on a conference call with analysts.
Now the company is looking to grow its business in the U.S. government, CEO Carl Eschenbach said. “We think there’s a huge opportunity there with probably more than 80% of HCM and ERP still on premises,” he said, referring to human capital management and enterprise resource planning.
Earlier this month, President-elect Donald Trump announced plans for an advisory panel called the “Department of Government Efficiency.”
“People are absolutely looking to drive more economies of scale and more efficiency,” Eschenbach said.
Workday said Rob Enslin, the former Google and SAP executive who stepped down as UiPath CEO in June, was joining as president and chief commercial officer. In October, Workday told employees that Doug Robinson, a co-president, will retire.
During the quarter, Workday acquired contract lifecycle management software startup Evisort. Workday also said artificial intelligence agents for spotting inefficiencies, filing expense reports and updating succession plans would become available in early access in 2025.
“We think they’re going to have a nice impact on bookings and revenue as we go into the new year,” Eschenbach said.
Rowe called for $8.8 billion in fiscal year 2026 subscription revenue, good for 14% growth.
As of Tuesday’s close, Workday shares were down 2% in 2024, while the S&P 500 index had gained 26%.
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