More often than not when I’m drafting a contract or a legal agreement between parties, I always infuse the dispute resolution clause or the arbitration clause which always reads; “if there is a dispute emanating from the contract, the first point of recourse for settlement of the dispute is arbitration”. The clause stipulates that any dispute emanating from the contract or amongst the parties to the contract must first be referred to arbitration, it must be only when arbitration fails that the matter will be referred to a traditional court. 

The reason for this arbitration clause is that it is always easier and less time-consuming to settle a dispute through arbitration and once there is this clause in the agreement it must be followed based on the legal principle of “pacta sunt servanda” but it is not every dispute that can be settled through arbitration. There are some disputes that must be referred to a traditional court of competent jurisdiction to exercise jurisdiction over the matter despite what the content of the dispute resolution or the contract’s arbitration clause says. 

There are some cases that the arbitration panel does not have jurisdiction over and therefore cannot exercise jurisdiction over, such matters will have to be referred to a traditional court.

The recent Supreme Court ruling in the case of UBA plc v Triedent Consulting Ltd (2023) 14 NWLR (Pt. 1903) Pg. 95 (SC) reemphasized the rule that despite an arbitration clause in an agreement, there are some cases or matters where a traditional court will have to override the arbitration clause and exercise jurisdiction over the matter. 

In the above case, one of the core issues before the court for determination is whether a party to a contract can resort to traditional court over a dispute arising from the contract despite the arbitration clause infused in the contract. 

The court held that there are some instances where, even though parties have submitted to arbitration, the suitability of litigation takes priority over arbitration. Such instances may include:

(a) where the issue for resolution is essentially a legal one; or

(b) where the issue turns largely on the credibility of the evidence; or

(c) where immediate enforcement of a right is required; or

(d) where one of the parties is intransigent; or

(e) where there are multi-party disputes arising from a transaction. 

This is to say that there will be some instances where a court will override an arbitration clause and exercise jurisdiction over a dispute emanating from a contract. 

If you own stocks of telcos which are piping data via GSM, remember what those telcos did to CDMA companies (they destroyed them). I have written that the biggest risk to GSM and broad terrestrial operators is when satellite-based operators could deliver direct-to-cell services. Yes, your normal-like smartphone will have satellite capabilities like the Huawei Mate 60 Pro at scale:

“Elon Musk-owned satellite internet service Starlink has announced plans to roll out a direct-to-cell service in 2024. On its webpage, Starlink wrote that the soon-to-be-launched feature will use its satellites to enable users with access to texting, calling, and browsing wherever they may be, either on land, lakes, or coastal waters.”

This is a new basis of competition and many terrestrial phone operators will struggle to compete by 2026. Those fat profits in Africa will fade because the satellite operators will challenge them at scale across all domains and territories.

Elon Musk-owned satellite internet service Starlink has announced plans to roll out a direct-to-cell service in 2024.

On its webpage, Starlink wrote that the soon-to-be-launched feature will use its satellites to enable users with access to texting, calling, and browsing wherever they may be, either on land, lakes, or coastal waters.

Direct to Cell works with existing LTE phones wherever users are, and will also connect IoT devices with common LTE standards. The feature will not require any changes to hardware, firmware, or special apps.

The company confirmed on its site that initial coverage will apply to text in 2024, and expand to voice and data the following year. Also, Starlink says it will combine loT devices with LTE standards in 2025.

Starlink satellites with direct-to-cell capability have an advanced eNodeB modem onboard that acts like a cellphone tower in space, allowing network integration similar to a standard roaming partner.

According to Starlink, it plans to launch the direct-to-cell feature to enable users to connect to remote regions, providing peace of mind when customers need it most.

The latest development in Starlink’s Direct to Cell launch comes more than a year after SpaceX and T-Mobile announced they would work together to bring cell service to unreachable areas.

The companies confirmed the collaboration at a live event in August and T-Mobile’s CEO Mike Sievert said in a press release that the mobile service provider and SpaceX share a common goal to reach people in the most remote areas of the world.

In his words,

“We’ve always thought differently about what it means to keep customers connected, and that’s why we’re working with the best to deliver coverage above and beyond anything customers have ever seen before. More than just a groundbreaking alliance, this represents two industry-shaking innovators challenging the old ways of doing things to create something entirely new that will further connect customers and scare competitors.”

Notably, SpaceX is leveraging its experience in manufacturing and launching the world’s most advanced rockets and spacecraft to deploy Starlink satellites with the Direct to Cell capability at scale.

Direct to Cell satellites will initially be launched on SpaceX’s Falcon 9 rocket and then Starship. On orbit, the satellites will immediately connect over laser backhaul to the Starlink constellation to provide global connectivity.

It is worth noting that Starlink plans to launch the direct-to-cell feature which enables text, call, and browsing wherever users are, is already a feature launched by Apple for iPhone users.

Last year, in a bid to give users a measure of safety even when they’re in a place without cell service, Apple launched an emergency SOS feature for iPhone users which uses satellite technology to send for help.

With the launch of the latest iPhone 14, iPhone 14 Pro, iPhone 15, or iPhone 15 Pro, users can use Emergency SOS via satellite to text emergency services when they are off the grid with no cellular and Wi-Fi coverage.

Interestingly, satellite phones have now become the latest trend in the smartphone market.