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Musk touts Starlink progress as cost, demand hurdles remain

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Don Joyce, a Nokia manager working from home at a remote lake cottage in Canada, recently abandoned his painfully slow phone-line internet in favor of satellite broadband service Starlink, offered by Elon Musk’s SpaceX.

Starlink, which cost him C$600 dollars (US$486) for hardware and a lofty C$150 monthly subscription, provides “blindingly fast” speeds when uploading videos or streaming movies, he said.

But the beta test customer said he experiences dropouts during calls on Microsoft Teams and Zoom.

    “If you’re in the city and you have alternatives, I wouldn’t recommend it. But if you’re in the country, like in the middle of nowhere and you’re getting pathetic internet service, then it’s definitely a competitor.”

For billionaire entrepreneur Elon Musk – founder of electric vehicle manufacturer Tesla Inc – the success of one of his biggest bets may come down to just how many people like Joyce are out there.

Speaking at the Mobile World Congress event, Musk on Tuesday discussed progress in Starlink technology and subscriber growth as he forecast total investment costs in the satellite internet business at as much as $30 billion.

If the service is successful, it could vastly expand the reach of broadband internet around the world, connect Tesla vehicles, and even provide a new platform for traders and others with exotic internet needs, people familiar with the Starlink plan said.

But to do that, it must avoid the fate of similar satellite ventures that have preceded it.

“Not bankrupt, that would be a big step,” Musk said last year. “That’s our goal.”

SpaceX’s Starlink division launched its “Better Than Nothing Beta program” in the United States last October, with data speeds up to a competitive 150 megabits per second. Early reviews are mixed, with some users complaining of the problems that have always plagued satellite internet: sensitivity to weather.

Recent heat waves have caused new problems.

“I’m gonna have to spray it with a garden hose to reboot my internet. … That just feels so wrong,” a Reddit user who said he lives in Arizona posted earlier this month, along with an error message saying “Offline: Thermal shutdown” and “Starlink will reconnect after cooling down”.

SpaceX President Gwynne Shotwell in April said the firm has “a lot of work to do to make the network reliable”. The company on Tuesday did not have an immediate comment.

Service should improve with more satellites and other improvements: Starlink has launched over 1,700 of its 260 kilogram satellites so far, and envisions more than 40,000.

The economics are daunting nonetheless. Musk has said Starlink could serve less than 5% of internet users and still generate $30 billion a year in revenue. Critics called that wishful thinking.

“Is the demand there for tens of millions of subscribers at that price point?” asked analyst Tim Farrar, president at TMF Associates. “In most parts of the world, if you said to someone, your broadband service will cost you 100 U.S. dollars a month, they’d be like, incredulous.”

He said there might be wealthy people in isolated areas, “but there’s just not very many of those people”.

He said Starlink would also struggle for enough capacity to support that level of demand, especially as people are consuming more data for video streaming. That would mean “significant additional expenditure on upgrading the satellites and adding more satellites.”

RURAL SUBSIDIES

Pricing pain could be eased by nearly $900 million in Federal Communications Commission subsidies earmarked for Starlink for bringing the internet to rural areas.

Jonathan Hofeller, SpaceX’s vice president, said COVID-19 highlighted the need for “access to quality internet” anywhere on the globe.

Perhaps more importantly, Starlink said it can drive costs down by building its own terminals and satellites. It has hired engineers from chipmakers Broadcom Inc, Qualcomm Inc and others to design its own communications chips, a person familiar with the matter said – an approach similar to that taken by Tesla.

Starlink has more than halved the terminal cost from $3,000 and expects it to be in a range of a few hundred dollars within the next year or two, Shotwell said in April.

“Lowering Starlink terminal cost, which may sound rather pedestrian, is actually our most difficult technical challenge,” Musk tweeted last year.

Starlink also benefits from SpaceX’s low-cost launch capability.

“When you own pieces of the stack, you can do really technically sophisticated things at an affordable cost,” said Misha Leybovich, a former Starlink sales director.

Still, competition promises to be fierce. Amazon.com Inc subsidiary Kuiper has a directly competing project, while OneWeb – a collapsed satellite operator rescued by the British government and India’s Bharti Group – has vowed to be in the game as well.

Ahead of Musk’s speech at the Mobile World Congress, OneWeb said on Tuesday that it has secured an additional $500 million investment from Bharti, bringing its total funding to $2.4 billion.

Terrestrial telecom providers, meanwhile, are racing to deploy high-speed, fifth-generation (5G) broadband services.

The rapid spread of wireless and terrestrial broadband, along with high prices, were significant factors in killing previous low-Earth-orbit satellite ventures. Motorola-backed Iridium Communications Inc went through bankruptcy after billions of dollars in investment, while a similar fate met Teldesic, backed by Microsoft Corp founder Bill Gates.

SpaceX, Amazon and a number of others have “created quite a race that no one is absolutely sure whether there is a big enough market for it,” Iridium Chief Executive Matthew J. Desch told Reuters.

(Reporting by Hyunjoo Jin and Supantha Mukherjee; Editing by Jonathan Weber, Christopher Cushing, Keith Weir and Jane Merriman)

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B.C. Conservatives promise to end stumpage fees, review fire management if elected

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VANDERHOOF, B.C. – British Columbia Conservatives are promising changes they say will bring more stability to the province’s struggling forest industry.

Leader John Rustad announced his plan for the sector a week before the official launch of the provincial election campaign, saying a Conservative government would do away with stumpage fees paid when timber is harvested and instead put a tax on the final products that are produced.

Rustad said Saturday that under a provincial Conservative government, a small fee may be charged upfront, but the bulk would come at the end of the process, depending on what type of product is created.

He also promised to review how wildfires are managed, as well as streamline the permit process and review what he calls the province’s “uncompetitive cost structure.”

“British Columbia is by far the highest cost producers of any jurisdiction in North America. We need to be able to drive down those costs, so that our forest sector can actually be able to do the reinvestment, to be able to create the jobs and make sure that they’re still there to be able to support our communities,” he said.

The governing New Democrats meanwhile, say eliminating stumpage fees would inflame the softwood lumber dispute with the United States and hurt forestry workers.

In a statement issued by the NDP, Andrew Mercier, the party’s candidate in Langley-Willowbrook, said Rustad failed to support the industry when he was in government under the former BC Liberals.

“Not only will Rustad’s old thinking and recycled ideas fail to deliver, his proposal to eliminate stumpage would inflame the softwood lumber dispute — punishing forestry workers and communities,” Mercier said, accusing Rustad of ignoring the complexity of the challenges facing the industry.

The softwood lumber dispute between the U.S. and Canada stretches back decades. In August, the U.S. Department of Commerce nearly doubled duties on softwood lumber.

International Trade Minister Mary Ng has said Canada has taken steps to launch two legal challenges under the Canada-United States-Mexico Agreement.

Rustad said a provincial Conservative government would push hard to get a deal with the United States over the ongoing dispute “whether it’s with the rest of Canada or by itself.”

He said his party’s proposed changes are in the name of bringing “stability” and “hope” to the industry that has seen multiple closures of mills in rural communities over the last several years.

Most recently, Canfor Corp. decided to shutter two northern British Columbia sawmills earlier this month, leaving hundreds of workers unemployed by the end of the year.

According to the United Steelworkers union, Canfor has closed 10 mills in the province since November 2011, including nine in northern B.C.

Jeff Bromley, chair of the United Steelworkers wood council, said Saturday the idea of changes in favour of taxing the final product has been floated in the past.

He said the finer details of the Conservative plan will be important, but that the system needs to be improved and “new ideas are certainly something I’d be willing to entertain.”

“Something needs to happen, or the industry is just going to bleed and wither away and be a shadow of its former self,” Bromley said.

“Politics aside, if (Rustad) can come up with a policy that enables my members to work, then I would be supportive of that. But then I’m supportive of any government that would come up with policies and fibre for our mills to run. Period.”

When Canfor announced its latest closures, Forests Minister Bruce Ralston said the sector was a “foundational part” of the province and the current NDP government would work to support both local jobs and wood manufacturing operations.

This report by The Canadian Press was first published Sept. 14, 2024

The Canadian Press. All rights reserved.



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Christian McCaffrey is placed on injured reserve for the 49ers and will miss at least 4 more games

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SANTA CLARA, Calif. (AP) — The San Francisco 49ers placed All-Pro running back Christian McCaffrey on injured reserve because of his lingering calf and Achilles tendon injuries.

The move made Saturday means McCaffrey will miss at least four more games after already sitting out the season opener. He is eligible to return for a Thursday night game in Seattle on Oct. 10.

McCaffrey got hurt early in training camp and missed four weeks of practice before returning to the field on a limited basis last week. He was a late scratch for the opener on Monday night against the Jets and now is sidelined again after experiencing pain following practice on Thursday.

McCaffrey led the NFL last season with 2,023 yards from scrimmage and was tied for the league lead with 21 touchdowns, winning AP Offensive Player of the Year.

The Niners made up for McCaffrey’s absence thanks to a strong performance from backup Jordan Mason, who had 28 carries for 147 yards and a touchdown in San Francisco’s 32-19 victory over the New York Jets. Mason is set to start again Sunday at Minnesota.

After missing 23 games because of injuries in his final two full seasons with Carolina, McCaffrey had been healthy the past two seasons.

He missed only one game combined in 2022-23 — a meaningless Week 18 game last season for San Francisco when he had a sore calf. His 798 combined touches from scrimmage in the regular season and playoffs were the third most for any player in a two-year span in the past 10 years.

Now San Francisco will likely rely heavily on Mason, a former undrafted free agent out of Georgia Tech who had 83 carries his first two seasons. He had at least 10 touches just twice before the season opener, when his 28 carries were the most by a 49ers player in a regular-season game since Frank Gore had 31 against Seattle on Oct. 30, 2011.

The Niners also have fourth-round rookie Isaac Guerendo and Patrick Taylor Jr. on the active roster. Guerendo played three offensive snaps with no touches in the opener. Taylor had 65 carries for Green Bay from 2021-23.

San Francisco also elevated safety Tracy Walker III from the practice squad for Sunday’s game against Minnesota.

___

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Canada’s Newman, Arop secure third-place finishes at Diamond League track event

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BRUSSELS – Canada walked away with some hardware at the Diamond League track and field competition Saturday.

Alysha Newman finished third in women’s pole vault, while Marco Arop did the same in the men’s 800-metre race.

Newman won a bronze medal in her event at the recent Paris Olympics. Arop grabbed silver at the same distance in France last month.

Australia’s Nina Kennedy, who captured gold at the Summer Games, again finished atop the podium. Sandi Morris of the United States was second.

Newman set a national record when she secured Canada’s first-ever pole vault medal with a bronze at the Olympics with a height of 4.85 metres. The 30-year-old from London, Ont., cleared 4.80 metres in her second attempt Saturday, but was unable conquer 4.88 metres on three attempts.

Arop, a 25-year-old from Edmonton, finished the men’s 800 metres with a time of one minute 43.25 seconds. Olympic gold medallist Emmanuel Wanyonyi of Kenya was first with a time of 1:42.70.

Djamel Sedjati, edged out by Arop for silver in Paris last month, was second 1:42.87

This report by The Canadian Press was first published Sept. 14, 2024.

The Canadian Press. All rights reserved.



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