Sunday, June 21, 2015

New Market for Satellite Trunking?

It appears satellite trunking and mobile backhaul might be poised for wider use to support Internet access in remote regions, albeit enabled by a new generation of geostationary satellite and new middle earth and low earth orbit satellite constellations. 

To be sure, satellite trunking and backhaul have been crucial in many settings, for many decades, where undersea cables and terrestrial backhaul facilities do not exist. 

As always is the case, it is the business model that is most problematic. Among the issues: the cost of consumer premises equipment, which might need to fall to less than the cost of a smartphone. 

The biggest question is whether wholesale or retail emerges as the typical deployment pattern. In a wholesale business model, retail ISPs are customers. In the retail scenario, satellite is a competitor to other ISPs. 

Even with expected cost declines for terminals, the complexity and therefore cost of tracking MEO and LEO constellations likely argues for a wholesale model or direct to enterprise model.

Geosynchronous services will have both wholesale and consumer retail potential. 
  

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