The above title is from an iGR White Paper on internet transaction and spending, including the spending by rural internet users. The details are in the study HERE and the Foundation for Rural Service infographic which provides an excellent summary if you are in a hurry.
From the website with links to the white paper and infographic.
This report examines the nature and quantifiable value of online transactions, and draws comparisons between online usage habits among urban and rural consumers. The report was produced by iGR, a market strategy consultancy focused on the wireless and mobile communications industry, and commissioned by the Foundation for Rural Service (FRS).
Major findings include:
Internet usage among urban and rural consumers is largely similar.
Rural consumers are responsible for approximately 15% of all consumer, internet-driven transactions annually, which equates to more than 10.8 billion online transactions altogether.
Internet-driven transactions make up nearly 50% of U.S. gross domestic product (GDP) or $9.6 trillion annually. These transactions are estimated to grow to more than 65% by 2022, to $14 trillion per year.
The estimated value of rural online transactions is nearly $1.4 trillion—or 7% of GDP.
This is an impressive study with some interesting numbers, but it only looks at the transaction made by those with a broadband connection, what about the potential of the 14 million rural citizens that do not have any broadband connection?
I predict these 14 million unserved are future users of satellite broadband.
SpaceX has announced a launch target of May 2019 for the first batch of operational Starlink satellites in a sign that the proposed internet satellite constellation has reached a major milestone, effectively transitioning from pure research and development to serious manufacturing. R&D will continue as SpaceX Starlink engineers work to implement the true final design of the first several hundred or thousand spacecraft, but a significant amount of the team’s work will now be centered on producing as many Starlink satellites as possible, as quickly as possible.
With anywhere from 4400 to nearly 12,000 satellites needed to complete the three major proposed phases of Starlink, SpaceX will have to build and launch more than 2200 satellites in the next five years, averaging 44 high-performance, low-cost spacecraft built and launched every month for the next 60 months.
My question is how many in the first batch, twenty-five, or more. One estimate:
Using a Falcon 9 at 25 satellites per launch it would take 177 flights, about 36 flights per year. Using a Falcon Heavy with 40 satellites it would take 112 flights, over 5 years that’s about 22 flights per year. Using a BFR assuming 350 satellites per launch, until someone comes up with a better number, would need 13 flights total.
Source: Reddit Starlink FAQ
It has been reported that Facebook globally has two billion users, on today’s networks with large segments of the global population living in internet deserts. Places were there is no connectivity, making the use of social media extremely difficult. China’s social media sites are reported to have half a billion users. Add another half a billion to include all the other social network sites, and it’s clear we are becoming a connected world.
Space-based internet will cover the planet from 57 degrees North to 57 degrees South. Industry experts estimate this will bring 4 billion more users to the internet that do not have access today.
That would be four billion new customers for Amazon, many living in rural areas far from the local store. It is also four billion potential social media users. Social media giants Facebook, Twitter, Instagram, and a plethora of others are struggling to manage the current customer base, with news of data breaches in the daily news. Can they handle four billion more customers?
While writing this, I had another thought. Amazon Prime Members are offered free two-day shipping. Satellite internet is going to connect hundreds of millions of new rural customers, many at the end of a 40-mile driveway. Once Amazon has added hundreds of millions of rural customer will shipping still be free?
The U.S. Department of Agriculture will start accepting applications for its Rural e-Connectivity Pilot Program (ReConnect Program) on April 23.
The ReConnect Program enables USDA to create and implement innovative solutions to rural connectivity by providing various financial options to partners and customers
We earlier reported the rules for how the government would award $600 million in broadband loans and grants for the Rural Broadband Pilot program created by Congress. The USDA ReConnect Rural Broadband Pilot rules apply to a wide range of potential participants, including state and local governments and non-profit organizations, as well as for-profit corporations, limited liability companies, cooperatives and tribes.
The USDA will make three different types of awards:
- $200 million in grants, with a requirement for 25% in matching funds, with an application deadline of May 31
- $200 million in 50% grant/50% loan combinations, with an application deadline of June 21
- $200 million in low-interest loans, with an application deadline of July 12
Note that all of the deadlines above are slightly later than the government originally announced.
Funds will be awarded to projects that have financially sustainable business models that will bring high-speed broadband to rural homes, businesses, farms, ranches and community facilities such as first responders, health care sites and schools. Telecommunications companies, internet service providers, rural electric cooperatives and utilities and municipalities may apply for funding through USDA’s ReConnect Program to connect rural areas that currently have insufficient broadband service.
Applications can be submitted through via reconnect.usda.gov.
H/T to Telecompetitor
— Wireless trade group CTIA will host National Economic Council Director Larry Kudlow, Pai and executives from T-Mobile, Sprint and U.S. Cellular to talk all things 5G at a summit at the International Spy Museum today. The industry group came out this week with recommendations for a national spectrum strategy, urging the Trump administration to set a five-year schedule for airwaves auctions and commit to a “free market” approach to 5G. Some Trump allies including the president’s 2020 campaign manager Brad Parscale have been promoting a more government-oriented “wholesale” model for the next-generation networks, in which a public-private partnership would resell spectrum capacity to wireless providers.
— Kudlow, who will give a keynote, is expected to discuss the administration’s support for a private sector, free-enterprise approach.
Source POLITICO Morning Tech
CTIA National Spectrum Strategy Message is HERE.
Satellite Magazine has the full details HERE, below is a summary of the services that Telesat a Canadian satellite operator plans to provide with a fleet of 117 LEO satellites starting in 2020.
Mobility: Targeting vessels on the ocean and aircraft flying polar routes concentrating capacity into areas of highest demand, such as major airports and seaports.
Carrier Backhaul and Enterprise Connectivity: Backhaul for 4G/5G networks with a focus on rural institutions such as schools and hospitals, plus remote enterprises, mines, and factories providing high-speed connectivity just like urban entities.
Government and Defense: The government is exploring ways to leverage the advantages of next-generation broadband LEO mega constellations, especially the low latency and high resiliency that results from their full global, pole-to-pole coverage for military programs including unmanned aerial vehicles, as well as other sovereign applications diplomatic communications, border control, and protection are listed in the article.
The focus is not on supplying individual users broadband services but institutional organizations that can server their members.
Service in the rural areas of the state is abysmal, which makes it the perfect place to test next-generation satellite internet.
MIT Technology Review has the full story HERE.