“Because of the higher relative cost of bandwidth transmitted via satellite versus terrestrial technologies, satellite is currently primarily used in situations where fiber optic cables and other high-capacity technologies are not financially viable due to low population densities and large distances between high-capacity networks and last-mile networks,” the Asian Development Bank rightly notes.
“In a few cases, satellite connectivity is relied upon for international internet gateway traffic or as part of a country’s core network,” ADB says
source: Asian Development Bank
As typically is the case, satellite connectivity has the best economics in rural and remote areas, the highest cost in dense urban areas. In denser areas mobile networks tend to have the best economics, followed by cable TV hybrid fiber coax networks, then fiber to home networks.
The economics of fully commercialized wireless platforms such as high altitude pseudo satellite is not yet completely clear, but is expected to be higher cost than FTTH.
Low earth orbit satellite constellations are expected to have costs in urban areas also higher than FTTH. In remote areas mobile networks are expected to retain the cost advantage, but HAPS and LEO platforms will be lower in cost than cabled alternatives.
source: Asian Development Bank
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