In the past, few large Geostationary -satellites (altitude: ~36,000km, with a fixed position above Earth) were used to provide voice and data services. The new generation gets much closer: LEO (low earth orbit) satellites are zooming around the Earth at breakneck speeds and at shallow altitudes between 200 to 2,000 km. LEO-based services offer drastically better performance. By getting closer, latency is reduced, and each satellite only covers a small area on the ground, creating much more bandwidth capacity. On the flip side, this necessitates large constellations of small satellites. For instance, Starlink has already deployed over 5,000 of them, and current plans of multiple providers will bring this number to the tens of thousands (which also raises questions about managing space debris, avoiding collisions, and addressing “light pollution” caused by reflections that hinder space observation). In recent years, building and operating commercial LEO constellations has become feasible, as economies of scale have arrived for production and launches of satellites.
This is the tech side – what’s in it for you?
Consumers (B2C) can experience even better connectivity solutions. In areas where broadband/fiber rollout is slow or nonexistent, satellite can replace or boost current connections. When on vacation, you can bring your satellite dish to the most remote locations. First emergency call options via satellite are already on the market for mobile phones, and in a few years, handheld devices will be able to seamlessly switch between terrestrial and Non-Terrestrial Networks, eliminating white spots, at least outdoors.
For businesses (B2B), satellite connectivity used as insurance against network blackouts on the ground for mission-critical applications. Similar to the benefits for consumers, satellite enables businesses to connect with remote locations or boost existing connectivity where fiber is not economically viable or not yet available. Additionally, satellite technology enhances IoT and mobile applications, bridging coverage gaps globally and enabling worldwide services.
In the government sector (B2G), satellite connectivity proves invaluable in remote and challenging terrains. Governments and the military profit from the same performance improvements, capitalizing on enhanced capabilities, and exploring new use cases made possible by LEO constellations. The adaptability and resilience of satellite technology make it an indispensable asset for governments navigating unforeseen challenges: when terrestrial networks are interrupted on a large scale, such as in natural disasters or during wars, satellite helps to stay connected and coordinate efforts on the ground.
Of course, these new capabilities in the sky also impact the providers of networks on the ground. Telecommunication providers are rushing to position themselves strategically, driving partnerships as well as technical development and standardization. Given the substantial investments that incumbents and new entrants like Amazon are making in LEO internet, interoperability and collaboration seem to be better bets than trying to close off incumbent markets.