10 April 2015
NEWS & VIEWS
Exciting time for satellite industry as new players enter the space
by virgil labrador
LAS VEGAS – As the satellite industry this month heads to the largest broadcasting show in the world , the 2015 NAB Show in Las Vegas , Nevada , USA , you might find new faces walking the aisles of the upper South Hall of the Las Vegas Convention Center .
During the first quarter of this year , at least three new Low Earth Orbit ( LEO ) constellations — involving a major Silicon Valley company such as Google , telecom equipment manufacturer Qualcomm and billion aire mogul Richard Branson ’ s Virgin Group — were announced .
The first to announce plans to build a global LEO constellation was WorldVu Satellites , operating as OneWeb . Qualcomm Incorporated and The Virgin Group were the initial investors in the venture , with Qualcomm executive chairman Dr Paul Jacobs and Virgin Group founder Sir Richard Branson to join OneWeb founder Greg Wyler on the company ’ s board of directors .
OneWeb said in a statement that it plans to bring in additional investors to fund the construction , launch and operation of its system .
According to OneWeb , it hopes to bring high-speed Internet and telephony to people living in under served areas , with the OneWeb satellite system composing of the “ first-ever ” telecom-class micro satellites . This projected fleet of 648 micro satellites is intended to provide low-latency , high-speed Internet access directly to small user terminals deployed around the world .
OneWeb also announced the selection of its first satellite launch vehicle provider , Virgin Galactic , using the latter ’ s LauncherOne vehicle .
Two days after the OneWeb announcement in January , PayPal co-founder and launch service provider SpaceX CEO Elon Musk announced that he will be leading an Internet delivery project using LEO satellites .
Google is reportedly investing US $ 900 million in the venture , according to regulatory filings . Led by Musk , the venture , which is yet to be named , plans to launch 4,000 satellites in LEO orbit to provide broadband access in the next five years .
Another company planning to launch a LEO satellite constellation is Leosat . Last month , it announced the appointment of the former chairman and CEO of Kymeta Corporation , Vern Fotheringham , as its new CEO .
Founded by former Schlumberger executives Cliff Anders and Phil Marlar , Leosat has been developing its network architecture , spectrum planning and satellite payload since 2013 . The company ’ s vision is to deliver “ cost-effective , extremely high-speed , low-latency , highly secured ” data network service offerings to address the unmet needs of business and government markets .
Fotheringham said : “ When I was approached about joining Leosat , it represented a perfect opportunity to meld my personal interest and experience in advancing the future of Non- Geo-Synchronous Orbit ( NGSO ) broadband satellite systems with an organisation that shares my vision , and enjoys a significant head start over the rapidly growing field of new entrants seeking to exploit the unique capabilities of NGSO satellite communications .”
With technology driving increased demand , costs coming down and several notable players such as Google , SpaceX and One- Web helping to fuel the category , this is an exciting time in the satellite industry , declared Christopher Baugh , president and founder of
Virgin CEO Richard Branson ( left ) and Qualcomm executive chairman Pau Jacobs . Both Virgin and Qualcomm have announced investment in new Low earth Orbit ( LEO ) constellations this year .
NSR , a satellite industry consulting company .
He added : “ Leosat is positioning its service offerings primarily on potentially lucrative business and government market opportunities . There is a big international market to be served by a unified global broadband network with significant revenue potential at stake .”
The closer proximity to earth of Middle Earth Orbit ( MEO ) and LEO satellites as opposed to the traditional geostationary ( GEO ) satellites reduces significantly the latency of satellite signals , which make them ideal for broadband applications .
Bridging the gap between the digital haves and have-nots is certainly the key driver in this new influx of investment into non-GEO constellations .
According to the International Telecommunications Union ( ITU ), as of the end of last year , more than half of the world ’ s population — over three billion people — lacks
The closer proximity to earth of MEO and LEO satellites as opposed to the traditional geostationary ( GEO ) satellites reduces significantly the latency of satellite signals , which make them ideal for broadband applications .
Internet access . That number is also where O3b Networks derives its name from .
O3b has successfully launched services this year from its 12 all- Ka-band satellite constellations in MEO . The closer proximity to Earth of MEO and LEO satellites , as opposed to the traditional GEO satellites reduces significantly the latency of satellite signals . With a project jump in demand for bandwidth in the coming years , we may see other players coming in the MEO and LEO space .
The LEO market , in particular , is experiencing a combination of technological and financial advances that are lowering barriers to entry and driving market growth . NSR ’ s Satellite Manufacturing and Launch Services , fifth edition , identified an ongoing proliferation of LEO operators across all application markets .
From a 2010-13 average of 5.5 active operators per year ( defined as launching at least one satellite within the year ), last year ’ s surge to 11 active operators signalled a turning point . The emergence of additional operators is anticipated through the end of the decade and
The LEO market , in particular , is experiencing a combination of technological and financial advances that are lowering barriers to entry and driving market growth . NSR ’ s Satellite Manufacturing and Launch Services , fifth edition , identified an ongoing proliferation of LEO operators across all application markets .
As analyst firm Raymond James points out , much has changed in the past 20 years , but the regulatory , financial and technical challenges of building a LEO constellation remain daunting . beyond , correlating to more than 6,000 LEO satellites to be launched between 2015 and 2024 .
Global demand for data transport and products is driving interest in entering the market , but vastly improved economics and the engineering of putting a capable satellite into LEO are the real factors facilitating market growth , according to NSR ’ s Carolyn Belle , who explained : “ Uniquely LEO manufacturing methods and options are becoming more favourable . Increasing acceptance of COTS materials is bringing down unit manufacturing cost , as is a trend towards single-string sub-systems for constellations .
“ Technology miniaturisation has broadened the range of capabilities , enabling operators to provide better value with a smaller and cheaper platform . The feasibility of in-house satellite production , as OneWeb and SpaceX both plan to do , can achieve an even lower per unit cost while providing greater control over design revisions and platform optimisation .”
The entry of new players such as Google and Qualcomm in the LEO space will most certainly be shaking up the satellite industry . There have been several global LEO constellations planned in the late 1990s that ended up in bankruptcies , or which have necessitated the refocusing of their business models , Iridium and Globalstar being examples .
As analyst firm Raymond James points out , much has changed in the past 20 years , but the regulatory , financial and technical challenges of building a LEO constellation remain daunting .
Virgil Labrador is APB ’ s satellite contributor . Based in Los Angeles , California , USA , he is the author of two books on the satellite industry and has been covering the industry for various publications since 1998 . Before that , Labrador worked in various capacities in the industry , including a stint as marketing director for the Asia Broadcast Center , a full-service teleport based in Singapore . He can be reached at virgil @ satellitemarkets . com .