by Lucas Fritz | 12/06/2024
The past few years have seen a boom in the satellite industry due to the reductions in costs to send Low Earth Orbit (LEO) satellites to orbit and increased integration of satellite services with 5G devices. Today, Blue Orbit’s New Shepard rocket costs between $5 million and $7 million. Compared to the 1980’s, these prices are 40 times lower. With cheaper parts, the ability to design smaller spacecraft machinery, and large investments towards SpaceX and Blue Origin, costs for takeoff have dropped. As these costs have lowered, satellite applications for companies such as Starlink have grown. Well-known brands like T-Mobile have collaborated with Starlink and Verizon on Skylo to reach a common goal of eliminating mobile dead zones. Following this trend, there has been a surge of partnerships between terrestrial network operators and satellite internet providers allowing smartphones and other devices to connect with both cellular stations and satellite services.
With terrestrial towers and base stations serving higher system capacity, higher data rates, and lower latency, satellites offer service to remote places without cellular coverage. MTN Group, Africa’s largest mobile operator, is looking for partnerships with LEO satellite providers to amplify connectivity for rural communities as a part of their inclusive digital transformation.
It is expected that satellite connectivity will be offered in a hybrid model regarding its smartphone applications. Fibre to the Premises (FTTP) and terrestrial 4G/5G will always be more effective, but the addition of satellite connectivity would be especially useful in areas of poor connectivity for SOS messaging. The FCC encourages carriers to collaborate to extend connectivity and better ensure access in instances of emergency. In response, carriers are sharing infrastructure and combining satellite technologies and components like radio access networks (RAN).
Smartphone giant, Apple, has made extreme steps regarding satellite connectivity. In 2022, with the introduction of the iPhone 14 series, Apple partnered with Globalstar satellites to ensure users could send and receive messages to emergency contacts in areas of network unavailability. Since the release of iOS 18, Apple has extended its satellite capabilities to regular messaging and calling on iPhone 14 and later models in the US and Canada. Apple apps such as Find My, now share locations between users through satellite networks for more precise tracking. Apple’s satellite ambitions are only growing as they recently purchased a 20% stake in Globalstar and committed $1.5 billion toward satellite network R&D.
AST SpaceMobile is a satellite connectivity company dedicated to creating an interconnected world by collaborating with cellular providers globally. On September 12, the company launched five commercial LEO satellites that match the voice, data, and video speeds of a broadband tower. The network fully supports regular smartphones to act like satellite phones, which is cheaper and more convenient for people in desolate areas. The company partnered with AT&T to work on direct satellite-to-phone connections that complement terrestrial networks. Their satellites recently completed voice calls and data download tests successfully.
Effects on Enterprise
Satellite connectivity is especially relevant in an industry like offshore oil, where increased connectivity enhances safety, efficiency, and communication. Data is being produced by drilling efforts constantly, and satellite connectivity ensures that information regarding valve control, leak detection, and other concerns can be instantly transferred to onshore experts. Without the use of satellite connectivity, communication between offshore and onshore assets can be extremely unreliable.
Another industry satellite connectivity could greatly affect is commercial air travel. In early September, United Airlines announced that they will implement Starlink’s internet service for all passengers, beginning in 2025. This competitive advantage may lead other airlines to invest in satellite connectivity from Starlink and their competitors.
Satellite connectivity also offers opportunities in autonomous driving (V2X). V2X is a communication technology that allows vehicles to interact with other vehicles, pedestrians, infrastructure, and networks. These vital communications ensure road safety, reduce traffic, and permit autonomous driving. Like mobile devices, satellite connectivity is crucial when traveling through remote areas. LEOs offer low latency making their networks suitable for V2X applications such as collision avoidance.
Although satellite connectivity offers encouraging solutions for complete coverage, there are challenges that must be addressed for success as part of a global communications strategy. Costs of deploying and maintaining satellite infrastructure, latency issues, and environmental issues are all obstacles facing satellite connectivity. Through partnerships and strategic alliances, the industry could mitigate these challenges and create systems that meet the future connectivity demands.