Bloomberg Technology TV
Charles, you have the constellation, well, a small constellation, up and running. You have the commercial deals in place. This is an area, just last week we
learned, that SpaceX wants to get into as well. Is there enough room for you and the likes of SpaceX to build out the sat-to-cell network?
Charles Miller
Well, absolutely, so let me explain why.
First of all, it is completely validating that SpaceX wants to follow Lynk, right? We are the category creators, we invented this, we proved it, and theres a bunch of companies jumping in now that weve done it. But, this is the key thing
to understand: no ones going to get a monopoly. In the mobile wireless industry theres at least two or three winners. They dont let anybody get a monopoly. They didnt let Apple get a monopoly when they invented the modern
smartphone, they pulled into existence Android within 18 months. So, theres going to be at least two, maybe three winners in satellite direct-to-standard phone.
Its going to be Lynk and one or two other companies. So, thats natural. Its best for the consumer and just completely validates what were doing.
Bloomberg Technology TV
Alex, really similar question
for you: in a lot of the SPACs that Ive covered over the last three or four years, the ones that have gone wrong is where due diligence was a problem, and I wondered how much of a concern entering a market with Lynk with a big competitor, or
potential competitor, like SpaceX, how much of that was a consideration for you?
Alex Rodriguez
Yeah, it was, and look, were super disciplined. Wed rather not do a SPAC and take something public unless we felt really passionate about it,
were long-term thinkers, and our core values are aligned. I mean, its such an exciting space. To think that this is a trillion dollar business annually opportunity and to connect the unconnected. To think that Charles and Lynk can
connect over a billion people, more than we have today. And if you think of Amazon, Ed, how theyve disrupted the retail business: what Lynk is is the disruptive business where you have these cell towers, where you would need a football field,
or two, to provide, Charles has created one that, his satellites go in the size of a pizza box, and then you send them to orbit. And, over the next five years, there should be hundreds, if not thousands, of these up in orbit.
Bloomberg Technology TV
Alex raises a good point, which
is the industries youre trying to disrupt. But, if you think about the end user, right? Me, the consumer with the cell phone. It seems to be the carriers, Charles, that you want to do business with.
Charles Miller
That is a key part of our strategy.
Were partnering with mobile phone companies, like, many people here in the United States know Verizon, AT&T, and T-Mobile, but theres 800 around the world. And, we are going to be a partner
with mobile network operators around the world. It goes directly to our business model. We are set up as a trusted partner of mobile network operators, and it has huge implications for our economics. So, we dont have to go sign up subscribers.
We cut a deal with a mobile network operator and we instantly get a million, to maybe a hundred million subscribers. So, our subscriber acquisition cost, because it uses the phone in your pocket, basically almost goes to zero. It goes to like a
thousandth of a cent acquisition cost, so its tremendous economics.
Bloomberg Technology TV
Charles, really quick: on the economics, I wanted to go to launch as well. How are you going to build out your constellation? Who will the launch providers be?