03.31.18

Lost in SpaceX…

Posted in General, SpaceX at 10:17 am by timfarrar

In the run up to Satellite 2018 on March 12 it became clear that Elon Musk was once again spending most of his time on SpaceX business rather than at Tesla (which has pre-occupied him for most of the last year), when SpaceX director of communications John Taylor unexpectedly left the company in early March. Musk confirmed as much in his SXSW conference appearance that weekend, which focused primarily on SpaceX and appeared to put SpaceX ahead of Tesla when talking about how he allocated his time.

So my joke to satellite operators and insurers at Satellite 2018 was that they’d better watch out for an increase in launch risk, if Elon is going to suck up the best talent at SpaceX for his BFR project. Or perhaps some of those people will simply decide to leave the company, like SpaceX’s director of software engineering.

Since then we’ve seen Musk burning absinthe in Israel, presumably as part of the dealmaking with Spacecom to launch the replacement for the Amos-6 satellite that blew up on a SpaceX rocket in September 2016. Then Musk was focused on deleting SpaceX’s Facebook page (with Tesla’s page only deleted as an afterthought). And last night, when controversy was swirling over the fatal Tesla crash in Silicon Valley, Musk was busy tweeting about SpaceX’s latest successful launch and some random music video, pausing only for an unfortunate remark about how “Everything‚Äôs better with fire”.

As Musk continues serenely on with his SpaceX focus, at Tesla things have been going from bad to worse this week, with Tesla’s heads of engineering and production writing a (conveniently leaked) memo on how they planned to free up workers for the Model 3 line this week in order achieve the “incredible victory” of producing 300 Model 3s in a day. No one seems to have remarked that back in September 2016, a near identical memo came from Elon Musk personally (and was even leaked to the same reporter), which seems to confirm that Musk has stepped back from direct involvement in Tesla’s production woes.

That’s all in sharp contrast to Musk’s camping expedition on the roof of the Gigafactory last fall, and raises the question as to how long Musk will be lost in SpaceX affairs, and how he will divide his time between the two businesses in future. Certainly he will be critical to Tesla’s upcoming fundraising efforts, and I’m sure Tesla’s investors thought they would be getting a lot more of Musk’s attention in exchange for his latest $2.6B pay package.

03.19.18

Will Silicon Valley go three for three?

Posted in Broadband, Eutelsat, Operators, SES at 4:44 pm by timfarrar

At Satellite 2018 last week it was interesting to note how after dominating some recent conferences, the role that Silicon Valley companies might play in rolling out new global broadband satellite networks was barely even mentioned. That’s probably because betting on these companies to anchor new satellite systems could now be said to have cost two industry leading CEOs their jobs, and it remains conceivable that the same could happen to a third.

Back in October 2015 Michel de Rosen took the decision to step down as Eutelsat CEO after his spectacular embrace of Silicon Valley’s T-shirt culture at Satellite 2015 only led to a modest partnership with Facebook for capacity on Amos-6. Facebook ultimately didn’t invest in Eutelsat’s Africa Broadband satellite and even the initial partnership disintegrated after Amos-6 was lost in the Falcon 9 launchpad explosion. So Eutelsat was left to go it alone with much reduced expectations for its broadband data business.

Then last month, SES announced that Karim Michel Sabbagh was stepping down as CEO, after his decision last year to skip Satellite 2017 because of the “number of exciting things we are working on”. At that time he suggested that “Some of these will come out in early April” but in fact the major announcement was delayed until early September, when SES ordered the O3b mPOWER satellites from Boeing.

In the interim, SES had been working to secure an anchor tenant from Silicon Valley, highlighting its collaboration with Google to provide backhaul for Project Loon in Peru and pointing to its deal with Facebook in Africa as an example of its redefined enterprise market strategy. SES even went so far as to select Boeing’s much more advanced and expensive architecture for O3b mPOWER in an attempt to convince prospective partners that the system would meet their future needs, but was forced to go ahead without the partner that SES’s board had expected to see in order to justify their investment commitment, undermining Sabbagh’s position.

Now it appears that Telesat is seeking partners for its own NGSO satellite project, which its CEO was very bullish about at Satellite 2018. We hear that Telesat may also be looking to Silicon Valley for an anchor tenant commitment to its new system, which it hopes to announce in the next few months. However, I have to hope that Dan Goldberg is not placing all his eggs in that basket, or else he may end up being the third satellite industry CEO in a row to suffer from the inability of Silicon Valley companies to commit to major investments in satellite connectivity projects.