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In December, the struggling British fleet operator said two of its still-young satellites - one launched within the past five years, the other within the past seven - can barely compete with only slightly younger systems. “The change is so rapid that five-, seven- or 10-year satellites for broadband are essentially all you’d want,” Musey said “You don’t want a 15- or 20-year broadband satellite any more than you want a 20-year-old laptop.”Īvanti Communications provides a recent telling example. Credit: SSTL/Kathryn GrahamĬhris Quilty of Quilty Analytics says the usual metrics for predicting how fast a satellite will pay back the upfront investment “are out the window nowadays.”Īrmand Musey, president of the Summit Ridge Group telecom consultancy, agreed. What’s an operator to do? A Telesat LEO prototype satellite built by SSTL launched in January on an Indian PSLV rocket. Some satellite operators are hedging their bets by taking stakes in the new constellations others are buying large communications satellites equipped with features to make them more flexible and maximize throughput.Īnd some are doing both. But no one knows exactly how since the megaconstellations aren’t in orbit yet.
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Most of these ventures anticipate having their first-generation constellations in orbit in the next five years.Īnalysts agree that the advent of huge fleets of small satellites in non-geostationary orbits have the potential to change the paradigm for satellite internet.
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New types of constellations also means new regulatory approvals from nations where companies want to do business.īut these hurdles aren’t stopping companies new and old from taking a swing at LEO and MEO broadband.Īccording to Northern Sky Research, at least 10 companies are planning to build broadband constellations of 100 satellites or more in non-geostationary-orbits. Those close orbits mean greater numbers are needed to cover the same surface area, driving the need for mass manufacturing and lots of launches. Planned for non-geostationary orbits, the megaconstellation satellites will orbit closer to Earth for faster connections. Megaconstellations are not without their own sets of challenges, including uncertainty about how the fast-moving broadband market will evolve and questions about how cheaply satellite receivers can be put into the hands of the world’s least served and close the digital divide (a popular raison d’être for many of these projects). Though measured in milliseconds, latency is the bane of automated stock trades, hardcore gaming and Skype video chats. The dominance of big geostationary satellites is about to be tested by the emerging megaconstellations - nimble fleets of hundreds or even thousands of relatively small satellites orbiting the planet at significantly lower altitudes.Ĭheaper to build, less costly to lose one or two, the low- and medium-Earth-orbit broadband satellites being built by OneWeb, SpaceX, Telesat and others promise nearly fiber-optic speeds and global coverage without the small-but-annoying lag that radio signals suffer during their 72,000-kilometer round trip to geostationary orbit and back. Fifteen-year satellites continue to do the trick when it comes to the biggest source of revenue for operators - transmitting television broadcast signals. Factoring in the two to four years it can take to build and launch a communications satellite, such a long-lived asset risks falling behind before it is in orbit.īig, slow-moving geostationary satellite projects costing about as much as Paul Allen’s superyacht or a Marvel superhero blockbuster have long dominated the satellite communications business. Seasoned operators, determined to stay ahead of the curve, are thinking twice before investing $200 million or more in a geostationary broadband satellite designed to operate at least 15 years. While that might sound like a good thing, the rush to HTS is driving down bandwidth prices so fast that some fairly low-mileage satellites are struggling to keep up. A study by Northern Sky Research found capacity prices dropped between 35 and 60 percent over the last two years and will continue to decline into next year, with a rebound unlikely. Demand for ever-faster broadband internet connections is maxing out today’s satellites, setting off an industry-wide stampede toward increasingly powerful high-throughput satellites (HTS).