New Space Race To Bring Satellite Internet To The World

Some views by industry leaders on the satellite internet race at CTVNews.

Anxiety has set in across the space industry ever since the world’s richest man, Jeff Bezos, revealed Project Kuiper: a plan to put 3,236 satellites in orbit to provide high-speed internet across the globe.

Offering broadband internet coverage to digital deserts is also the goal of the company OneWeb, which is set to start building two satellites a day this summer in Florida, for a constellation of over 600 expected to be operational by 2021

Billionaire Elon Musk’s SpaceX is equally active: it’s just received a clearance to put 12,000 satellites in orbit at various altitudes in the Starlink constellation.
Not to mention other projects in the pipeline that have less funding or are not yet as defined.

Is there even enough space for three, four, five or more space-based internet providers?

At the Satellite 2019 international conference in Washington this week, professionals from the sector said they feared an expensive bloodbath — especially if Bezos, the founder of Amazon, decides to crush the competition with ultra-low prices.

“Jeff Bezos is rich enough to put you out of business,” said Matt Desch, the CEO of Iridium Communications.

Iridium knows all about bankruptcy. The company launched a satellite phone in the 1990s — a brick-like set that cost $3,000 with call rates of $3 a minute. Barely anyone subscribed at the dawn of the mobile era.

The firm eventually relaunched itself and has just finished renewing its entire constellation: 66 satellites offering connectivity, but not broadband, with 100 percent global coverage to institutional clients including ships, planes, militaries and businesses.

“The problem with satellites, it’s billions of dollars of investments,” said Desch.
And if “you spend billions and you get it wrong, you end up creating sort of a nuclear winter for the whole industry for 10 years. We did that,” he added.

“These guys coming in, I wish them really well… I hope they don’t take 30 years to become successful like we did.”

Continue reading HERE.  These two paragraphs caught my attention:

“The challenge in monetizing is being able to get through those first few years, where you have to put in all your capital expenses, but not being able to get enough revenues to keep you afloat,” Shagun Sachdeva, a senior analyst at Northern Sky Research, told AFP.

Sachdeva expects most of the companies to die off, adding that the market will eventually have room for “maybe two” and that space-delivered internet services won’t be commonplace for at least five to 10 years.

That is longer than I want to wait.

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RCRC Commentary: Empower Local Communities to Close the Digital Divide

Greg Norton President and CEO of Rural County Representatives of California.

The deployment of broadband infrastructure supporting speed-of-commerce connectivity is among the most critical missing components needed to drive economic development in California’s rural communities. Broadband access is essential to connecting rural communities to the 21st century economy. Yet the barriers to deploying infrastructure continue to inhibit access in some of California’s most disadvantaged communities in both rural and urban areas.

The Rural County Representatives of California (RCRC) represents 36 of California’s 58 counties, covering approximately 56 percent of the state’s land mass. It is estimated that merely 47 percent of California’s rural households within this population area have access to high-speed broadband.

I recently had the opportunity to speak about this crisis on a panel before the California Emerging Technology Fund (CETF) titled “The Imperative of Digital Inclusion.” In their 2016-17 Annual Report, CETF identified internet access as a “21st Century Civil Right,” and the internet is now firmly established as an operational epicenter for business, government, education, information, and basic services.

Access to broadband provides multiple economic and social benefits to rural residents by allowing access to vital government services and resources. Broadband contributes to job creation, economic growth and business investment improves access to critical healthcare services, and expands access to educational resources and opportunities. Broadband access for farmers and ranchers would allow for improved stewardship of our natural resources through the use of technology to monitor and measure water and soil conditions and usage.

Local governments have joined forces in advocating for the acceleration of broadband deployment in California’s rural communities, and have outlined a number of key provisions. First, the technology deployed must be an appropriate fit for the area — high-speed fiber connections are imperative. Second, we must look to rural electrification as a model, and fund local municipalities to develop the infrastructure, and provide the services. Lastly, local governments should be empowered to step up as lead partners with the federal government to formulate and execute upon strategies that achieve broad-based access to high-speed services.

When high-speed connectivity is unavailable, too slow, or too expensive, it has a significant impact on the economic success and quality of life in these communities. As a result of the digital divide, rural communities are suffering, and struggle to tap basic resources including educational opportunities, medical care, economic and trade opportunities, and vital government services, including public safety.

We’re aware of the challenges involved in deploying adequate capacity across the broadband infrastructure in California’s rural communities. Rugged terrain, remote locations, and sparse populations are all factors that lead to increased deployment and maintenance costs. However, these challenges must be addressed in order to provide this fundamental socio-economic tool and resource to the residents within these communities. While technological advances such as 5G are beneficial to the overall industry, this type of innovation only serves to create a greater chasm between the haves and the have-nots. Priority should be focused on an equitable deployment of appropriate level services throughout the state, not on the next big thing for the fortunate few.

Community-driven broadband partnerships offer a solution. We can quickly resolve this problem by including local communities in the process of choosing the appropriate means to deliver the requisite broadband to ensure quality of life, business growth, and household capital formation. In partnership with the federal government, communities can choose the approach to delivering broadband best suited to their specific needs. Options could include innovative public-private partnerships, other government financing, or through the enforced requirement of leveraging infrastructure investments made with federal dollars by incumbent providers. The Federal Communications Commission has deployed and earmarked enormous amounts of capital to closing the urban-rural divide that exists with access to broadband. Despite these massive influxes of capital, too many rural communities remain without access.

It is imperative that ubiquitous middle-mile fiber optic cable technology is provided at the speed of commerce to allow small to medium-sized businesses to compete in the digital global marketplace, and attract economic development opportunities to California’s rural communities. Although we have made advancements in expanding broadband, there is more to do to ensure that universal access to broadband services is realized for all rural residents. Now is the time — we must allow local communities to develop high-speed solutions that fit their rural communities’ broadband infrastructure needs. Broadband is fundamentally necessary to a community’s economic health, quality of life, and opportunity at prosperity.

The source is HERE.

Comment:

The Federal funding to improve rural access to broadband is the Connect America II Fund, which is a 10-year program.  The telco 5G build-out is expected to take at least a decade. If the LEO satellite programs from SpaceX, Amazon, OneWeb, LeoSat, and Telesat are successful, space-based broadband will become available in 2021 which is only two years away. By 2024 there will be multiple broadband satellite companies competing for rural communities business. These companies are planning to provide 4G and 5G backhaul services at a lower cost than fiber, which has to deal with “rugged terrain, remote locations, and sparse populations.”  One of the obstacles to satellite broadband is the current CPUC and CETF policies which discriminate against satellite services. These are policies that were put in place due to the low speeds, long latency and high cost of geo-satellite broadband services.  LEO satellites latency is on par with cable networks and shared fiber services, and current speeds are equal to cable internet and on long distances exceed fiber speeds.  These policies need to be revisited and adjusted to match future broadband services. More in this issue in future posts.

Facebook LEO to Compete with SpaceX, OneWeb, and Amazon

This is an introductory blurb from July 2018 TechRepublic, below is an update from Satellite Markets, March 2019.

Facebook creates high-speed satellite broadband to compete for popularity with others like SpaceX and OneWeb. [Amazon has since joined the game]

Facebook plans on launching its own internet satellite in 2019, according to a Wired report on Friday. Currently, many people connecting to the internet in remote places receive very slow and little connectivity, which results in a frustrating user experience, the report noted, but satellites like those Facebook is planning could help remedy that.

The new satellites from Facebook were confirmed via emails obtained from the Federal Communications Commission, said the report. Named Athena, the internet device will look like “constellations” in the earth’s orbit, continue the report.

Update:

PointView Tech LLC. A filing with the FCC of a multi-million-dollar experimental satellite from Facebook was confirmed last July 2018. The satellite, named Athena, will deliver data 10 times faster than SpaceX’s Starlink Internet satellites.

In early 2019, PointView’s Athena will also head out to LEO, on an Arianespace Vega rocket. Athena is about the same size and weight (150 kg) as SpaceX and OneWeb’s satellites, but Athena will use high-frequency millimeter-wave radio signals that promise much faster data rates. The company estimates its E-band system will deliver up to 10 gigabits per second. “PointView is aiming to understand whether a system using E-band spectrum can be used for the provision of fixed and mobile broadband access in unserved and underserved areas,” it wrote in the FCC application.

PointView specifies three ground stations in its application that will send data to Athena in orbit and receive it in turn. One is a so-called satellite ‘teleport’ near Ventura, Calif., that is shared by a number of satellite companies. The second is Mount Wilson Observatory in the hills above Los Angeles, another popular location for communications hardware.

There are technical barriers to using E-band radio from orbit, however. High-frequency millimeter waves fade quickly and are easily absorbed by rain or other particles in the air. Part of Athena’s two-year mission will be to test just how big of a problem that is. “PointView plans to publish many of its experimental findings, including atmospheric attenuation model validation data,” says its application.

PointView expects to get download speeds of around 10 Gbps at its ground stations, with uplink speeds topping 30 Gbps. But because Athena is in LEO, it will only fly above the three ground stations a couple of times each day, and for less than eight minutes at a time.

Continue Reading HERE.

OneWeb with six sats in space and SpaceX’s TinTin A and B have been in orbit for a year making them the leaders, as the Athena Project will spend two years testing the E-Band and Laser Communications.  Amazon is just started hiring satellite engineers in Bellvue, Washington.  SpaceX will start launching operational satellites in May 2019.

 

Satellite-Based Cloud Computing Competition

Russ Steele

I just returned from a trip to the Seattle area where cloud computing slipped into the conversation with Amazon announcing the formation of a low latency satellite internet network to provide services, including cloud computing. This new development could bring fast cloud computing services to billions of new customers.

What is cloud computing you ask? Generally, cloud computing services are categorized into three types:
1) Infrastructure as a Service (IaaS): This service provides the infrastructure like Servers, Operating Systems, Virtual Machines, Networks, and Storage on rent basis. Recognized providers include Microsoft Azure and Amazon Web Service

2) Platform as a Service (PaaS): This service is used in developing, testing and maintaining of software. PaaS is same as IaaS but also provides additional tools like database management systems and business intelligence services. Primary provider are Microsoft/RedHat, IBM, and Oracle

3) Software as a Service (SaaS): This service makes the users connect to the applications through the Internet on a subscription basis. Examples are Google Applications, Salesforce, and Microsoft.

Amazon AWS, Microsoft, and Google are all using their infrastructure to provide more cloud-based business services, but now Amazon has changed the game by joining the LEO satellite broadband internet providers. By using a space-based network, AWS is building out service infrastructure to provide cloud connectivity to global customers, faster than surface based competitors, especially over long distances.

The question is can Google and Microsoft stay in the game with Amazon satellite broadband delivered cloud computing services across the globe.

Google Filed patent US 20170005179, on September 30, 2014, for a constellation of 1000 satellites to cover 75% if the earth. However, Project Loon, a series of balloons to provide WiFi services for broad swathes of the unserved area around the equator seem to take priority. With billions in the bank, Google could act on its patented network to become a space-based cloud service company.

What about Microsoft? How do they compete in the cloud computing service business when they are confined to earth-based fiber networks? Satellites networks with laser interconnections are much faster than fiber networks. For example, studies have shown fiber latency between San Francisco and London is about 146 ms, whereas the SpaceX satellite link is about 50% faster at 73 ms, with twelve satellite hops.

Microsoft’s Azure cloud is a rapidly growing business segment. Fiscal third-quarter sales in the company’s Azure cloud computing segment rose 73% year-over-year according to 3rd Quarter Report.

“Leading organizations of every size in every industry trust the Microsoft cloud. We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow,” Microsoft Chief Executive Satya Nadella said in the earnings release.

If I were a Microsoft advisor, I would recommend Microsoft CEO Satya Nadella investigate becoming a partner with SpaceX or one of the other LEO constellations that has an inter-satellite communications architecture to provide a suite of fast cloud computing service applications.  The game is changing and the winner yet to be determined.

Will Amazon’s Flywheel Consume the Rural Broadband Advantage?

What is the Amazon Flywheel? It is best described in a Bloomberg article examining Amazon’s Market Reach.

As Amazon grew, the company adopted a business school concept called the flywheel, loosely defined as a sort of self-reinforcing loop. Where possible, projects were to be structured to bolster other initiatives underway at the company.

Here is an example of the flywheel in action:

By the time Amazon began breaking out the revenue of Amazon Web Services in 2015, the cloud-computing unit had reshaped how businesses used technology. It was also Amazon’s biggest money maker, churning out billions of dollars a year in profit that the company could put to work investing in new services and expansion of its core retail business. Once again, the flywheel in action.

With the announcement that Amazon will be launching 3,236 low earth orbiting satellites to provide broadband internet services from space the potential competitors SpaceX, OneWeb, Telesat and LeoSat took notice. The most vocal was Elon Musk who claimed Amazon was copying SpaceX.

Perhaps those that Amazon’s broadband network will impact the most, the mom and pop stores across the nation, may not have given the announcement a passing thought.

While the Amazon LEO satellites will be providing high-speed internet access to 14 million rural US citizens who do not have access now, they will also be providing these rural consumers access to Amazon’s e-commerce kingdom. While Amazon can offer cloud services to small business in rural communities at the same time, they could be stealing those small business customers with their lower cost e-commerce options.

Screen Shot 2019-04-16 at 5.50.09 AM

According to the Foundation for Rural Service study current rural broadband users account for $1.4 Trillion in an online transaction, 14% of all internet driven transition, or 7% of GDP. However, they’re 19 million users that do not have Internet access or have access too slow for effective e-commerce. Amazons LEO network will provide easy access to these unserved broadband customers and at the same time adding them to the Amazon e-commerce customer base. The flywheel in action.

While SpaceX, OneWeb, Telesat, and LeoSat are planning to provide broadband services, Amazon will be providing broadband service, but the primary goal is the creation of marketing and sales infrastructure, which is a far different business model than the service based competition.  The depth of Amazon’s offerings gives them an advantage.

The problem remains, will Amazon’s space-based broadband access be an advantage or detriments to rural communities? Given Amazon’s market penetration so far, it appears that a ubiquitous internet will transform communities, there will be more information based businesses and fewer street side shops selling commodities that Amazon can deliver for less.

Your thoughts?

Here’s why Amazon is trying to reach every inch of the world with satellites providing internet

CNBC has the details:

  • Amazon is working on Project Kuiper, which would put 3,236 satellites into orbit to provide high-speed internet to any point on the globe.

  • “You can see the clear profit motive here for Amazon: 4 billion new customers,” Space Angels CEO Chad Anderson said.

  • CNBC spoke to more than a dozen space industry analysts and executives about Amazon’s proposal and the customers, competitors and costs involved.

In my opinion, this is the money quote:

Two industry officials said that this move “validates the market model” for these immense internet satellite networks, especially since “Amazon is a publicly traded company” with a broader shareholder base, unlike other space companies. Additionally, Amazon’s entrance “makes an already challenging market even more competitive,” one executive said.

Full Article is HERE.

There are still challenges ahead, as some dictator controlled countries do not want an open internet overhead, especially one selling ideas contrary to their socialist/communist doctrine.  Interesting times ahead.

 

GeekWire has Some Amazon Broadband Insight

If Project Kuiper comes to fruition, would Amazon, SpaceX, OneWeb, Telesat and other broadband players be chasing after the same customers in remote or underdeveloped regions of the world? Or would there be market segmentation?

You could argue that the biggest users of Amazon’s satellites will be … Amazon and its customers.

For example, Prime Video could offer streaming services worldwide via satellite (which could provide an edge over Netflix). The ability to provide cloud computing services to virtually anywhere in the world would be an attractive differentiator for Amazon Web Services (which already has a cloud-based platform for satellite management known as AWS Ground Station). And a global data network would make it a lot easier for Amazon to manage drones, robotic ground vehicles and all the other next-generation delivery channels it’s developing.

When you add the potential for taking orders and serving ads via a ubiquitous internet service, Project Kuiper looks less like a far-out fantasy and more like the final frontier for commerce. Amazon isn’t posting any job openings for satellite service marketers yet, but it’s probably only a matter of time.

Full Article is HERE. This is another opportunity for Amazon to change the business model once again. Another delivery systems totally under their control.  This is more than just a broadband delivery system.  Another Amazon Game Changer!  Stay Tuned!