{"id":65845,"date":"2018-03-13T22:49:25","date_gmt":"2018-03-13T14:49:25","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/new-economic-realities-will-impact-constellation-buildout\/"},"modified":"2018-03-13T22:49:25","modified_gmt":"2018-03-13T14:49:25","slug":"new-economic-realities-will-impact-constellation-buildout","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/new-economic-realities-will-impact-constellation-buildout\/","title":{"rendered":"New Economic Realities Will Impact Constellation Buildout"},"content":{"rendered":"<p>Rising opportunities in the Low Earth Orbit (LEO) have created a lot of excitement in the satellite industry over the past few years. Yet, while the market for residential and commercial broadband continues to soar, concerns surrounding the costs of deploying new technologies threaten to dampen some of the industry\u2019s enthusiasm.<\/p>\n<p>That was the general consensus among five panelists who spoke during Monday morning\u2019s session, \u201cThe New Economics and Costs of Building Constellations\u201d at the SATELLITE 2018 Conference &amp; Exhibition. <\/p>\n<p>\t\t\t\t<img loading=\"lazy\" width=\"300\" height=\"225\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-300x225.jpg\" class=\"attachment-medium size-medium\" alt=\"\" style=\"width: 120px; height: auto;\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-300x225.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-800x599.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL-640x480.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2018\/03\/pKm41XVIQ1aGAaggD9X6_ShowDaily18_Cover_Day3_DGTL.jpg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t<\/p>\n<h3 class=\"fs-5 mt-0\">Explore the Show Daily 2018 Day 3 Issue<\/h3>\n<p class=\"mb-0 fs-smaller text-balance\">Check out more from this issue and find your next story to read.<\/p>\n<p>\t\t\t<button class=\"btn btn-primary\" type=\"button\" data-bs-toggle=\"offcanvas\" data-bs-target=\"#offcanvasMENU\" aria-controls=\"offcanvasExample\" aria-label=\"button\" style=\"white-space: nowrap;\"><br \/>\n\t\t\t\tView More <i class=\"bi bi-arrow-right-circle\"><\/i><br \/>\n\t\t\t<\/button><\/p>\n<p>As technology \u2014 and the definition of what it means to support broadband services \u2014 has evolved, the economics and growth opportunities have shifted. <\/p>\n<p>When moderator Dave Davis, managing partner with InMotion Holdings, asked about the biggest challenges facing legacy satcoms, such as falling bandwidth prices, panelists cited a number of drivers for this turmoil. <\/p>\n<p>\u201cPeople have overbuilt and capacity has become a commodity,\u201d said Mark Rigolle, CEO of LeoSat Enterprises, which is currently in the midst of its Series A funding round as it plans to launch a laser-connected constellation of up to 108 LEO communications satellites between 2019 and 2022. \u201cWhat needs to happen is people need to stop overbuilding similar stuff, or the same stuff. But people who are building LEO systems are building something different, something else.\u201d<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6859f7a109c;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6859f7a109c = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6859f7a109d').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6859f7a109d'); });<\/script><\/p>\n<p>Erwin Hudson, vice president of Telesat LEO, said organizations need to \u201cdig a little deeper to see what is happening in the telecommunications market in general\u201d as they plan their business development. \u201cSpeeds have increased dramatically and \u2026 as speeds go up, latency becomes critical,\u201d said Hudson, suggesting organizations may have overbuilt in GEO. \u201cNow you\u2019ve got this huge increase in bandwidth, a big demand for low-latency communications.\u201d <\/p>\n<p>Audience members seemed to agree. During the first of three of the session\u2019s interactive polls \u2014 whereupon audience members could use their mobile devices to weigh in on multiple-choice questions \u2014 literally everyone said that bandwidth pricing over the next five years would continue to fall (the most popular answer, with 47 percent of the votes, was \u201cfall between 25 percent and 75 percent\u201d). The answers echo industry sentiments: In its recent satellite industry report on lower bandwidth pricing, NSR noted that while the satellite industry has benefited from lower bandwidth pricing, some vendors may struggle with proving ROI as bandwidth prices plummet.<\/p>\n<p>Yet while most everyone agrees the economics are shifting, panelists said the success of new satellite constellations is hard to predict because of so many variables at play, such as the sophistication of other technologies (e.g., antennas) and applications, as well as the ever-changing demands of multiple markets. <\/p>\n<p>Lisa Callahan, vice president and general manager of commercial civil space for Lockheed Martin Space Systems, said her organization is seeing the market demanding more flexibility and more agility \u201cso we can move the bandwidth to where we need it during high-capacity times.\u201d<\/p>\n<p>\u201cMy friends to the left here are building LEO constellations,\u201d said Callahan, as she gestured toward Hudson and Rigolle. \u201cI think that\u2019s wonderful; but there isn\u2019t a single panacea for this market. I don\u2019t think GEO\u2019s going away.\u201d<\/p>\n<p>Debra Facktor, vice president and general manager of strategic operations at Ball Aerospace, agreed with Callahan that there are still opportunities in GEO, but emphasized the importance of focusing on bigger picture \u2014 the development of more sophisticated architecture to create blanket coverage for multiple applications.<\/p>\n<p>\u201cI agree that it\u2019s an \u2018and\u2019 when you are talking about LEO or GEO \u2026 putting them all together in an overall architecture is taking advantage of the astrodynamics and orbital mechanics of what you can get from each orbit,\u201d she said. <\/p>\n<p>Andreas Lindenthal, a member of the management board for OHB System AG, echoed Facktor\u2019s broad vision. \u201cWe will see GEO, LEO and MEO satellites in the future \u2014 they all have their purpose,\u201d he said. \u201cBut the satellites will be much more efficient.\u201d <\/p>\n<p>Rigolle said he is hopeful that as the ability to produce higher volumes goes up, costs will naturally fall \u2014 which will, in turn, drive innovation. \u201cOne thing that struck me when I joined LeoSat was the effect of volume on unit cost,\u201d he noted, while reminiscing about his days at O3b.<\/p>\n<p><script>var AIAD_fcd45f981d570e35cee941b23edc69c7_6a6859f7a1711;googletag.cmd.push(function(){var AIMAP_29b58f13885ebf8ea6b032f958eb0748 = googletag.sizeMapping().addSize([992, 100], [[970, 90], [970, 250]]).addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_737ce075cc05dd766c8f8ea08f3faa73 = googletag.sizeMapping().addSize([768, 100], [728, 90]).addSize([320, 100], [320, 50]).build();var AIMAP_21fe3bcfb86a8660aba4e721ee9338f3 = googletag.sizeMapping().addSize([1200, 100], [970, 250]).addSize([768, 100], [600, 300]).addSize([320, 100], [300, 250]).build();AIAD_fcd45f981d570e35cee941b23edc69c7_6a6859f7a1711 = googletag.defineSlot('\/987\/satellitetoday.com\/via-satellite-digital-issue-ads', [ [600, 300], [300, 250], [970, 250] ], 'div-gpt-ad-1774631144891- 0-6a6859f7a1712').defineSizeMapping(AIMAP_21fe3bcfb86a8660aba4e721ee9338f3).setCollapseEmptyDiv(true).addService(googletag.pubads());   });<\/script><script>googletag.cmd.push(function() { googletag.display('div-gpt-ad-1774631144891- 0-6a6859f7a1712'); });<\/script><\/p>\n<p>When asked during a second interactive poll, \u201cwhat are the apps for new constellations with the best returns in the future?\u201d audience members were split on personal\/corporate communication (31 percent) and M2M\/IOT (40 percent).<\/p>\n<p>Facktor, whose organization provides data analytics for multiple markets, said consumer buying behavior could have the biggest impact on demand \u2014 although the challenge of making satellites that can scale the marketplace could slow innovation. \u201cIt takes a long time to change behavior, but when something becomes affordable and practical, you\u2019ll do it,\u201d she said. \u201cWe\u2019re seeing huge demand for the use of antennas for satcom, for 5G and that\u2019s a huge enabler. The ability to connect while you\u2019re mobile will be a game changer.\u201d <\/p>\n<p>Another critical element is partnerships \u2014 not just between satcoms, but terrestrial service providers as well. Or, as Facktor puts it, \u201cOur role is [figuring out], how do you bring the best innovation and capabilities together at the best price?\u201d <\/p>\n<p>However, when Davis asked panelists about the \u201crobustness\u201d of some of the new companies in this market, Rigolle said the high number of start-ups hopping on the constellation bandwagon raises some concerns.<\/p>\n<p>\u201cI\u2019m a bit worried about the starting point of many of these business cases,\u201d he said. \u201c[LeoSat] started with a problem and found a solution. Many other companies I see start out with a goal and then say, \u2018how can I do that at a reasonable price point?\u2019\u201d <strong>VS<\/strong><\/p>\n<p>,<\/p>\n<h2 class=\"widget-title\">In This Issue<\/h2>\n<p>\t\t\t\t\t<!-- post id 342:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img loading=\"lazy\" width=\"300\" height=\"139\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-300x139.jpeg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-300x139.jpeg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-800x371.jpeg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040-640x297.jpeg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/6oLhhxDQPiSfZgHeTiBU_IMG_9040.jpeg 1280w\" sizes=\"(max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\t#SatShow Insights \u2013 Day 2<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 339:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"200\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-300x200.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-300x200.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-800x533.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k-640x427.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/UWMnJywzRmClGc5rzCnE_40522766652_2ef0c730d5_k.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tBig or Small: Traditional Rocket Companies Will Launch Them All<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 338:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"221\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-300x221.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-300x221.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-800x591.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606-640x473.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/0Myt9cCLTC8O7nX5ksiw__MG_9606.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tContent Providers on the Future of OTT, IOT and High-Stakes Markets<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 340:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"190\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-300x190.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-300x190.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-800x508.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669-640x406.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/wKfRMmOpRlOks0GuZJJS__MG_9669.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tSmallsats Face a Lack of Rides to Space<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3\">\n<p>\t\t\t\t\t<!-- post id 337:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"192\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bSCD8Ky0RFKpRwb1uAJT_Story2_MG_9336-300x192.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bSCD8Ky0RFKpRwb1uAJT_Story2_MG_9336-300x192.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bSCD8Ky0RFKpRwb1uAJT_Story2_MG_9336-800x513.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bSCD8Ky0RFKpRwb1uAJT_Story2_MG_9336-640x411.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/bSCD8Ky0RFKpRwb1uAJT_Story2_MG_9336.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tWhat Will It Take to Boost Satellite Stock Prices?<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n<hr class=\"my-3 d-block d-md-none\">\n\t\t\t\t\t\t<!-- post id 336:  \/code\/wp-content\/themes\/ai-beehive\/template-parts\/content\/post-snippet.php --><\/p>\n<figure class=\"overflow-hidden w-100 me-3\">\n<p>\t<img width=\"300\" height=\"199\" src=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-300x199.jpg\" class=\"img-responsive wp-post-image\" alt=\"\" style=\"\" decoding=\"async\" loading=\"lazy\" srcset=\"https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-300x199.jpg 300w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-800x531.jpg 800w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014-640x425.jpg 640w, https:\/\/www.satellitetoday.com\/wp-content\/uploads\/2017\/01\/7oleYhcaR26aYzMuc4aD__MG_0014.jpg 1280w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\">\t\t\t\t\t<\/figure>\n<h3 class=\"fs-4 w-100 line-clamp-3\">\n<p>\t\t\t\tWhile Demand is There, Operators Need to Better Understand End Users<br \/>\n\t\t<\/h3>\n<p><!-- .post-snippet --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rising opportunities in the Low Earth Orbit (LEO) have created a lot of excitement in the satellite industry over the past few years. Yet, while the market for residential and commercial broadband continues to soar, concerns surrounding the costs of deploying new technologies threaten to dampen some of the industry\u2019s enthusiasm. That was the general [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":65848,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-65845","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/65845"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=65845"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/65845\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/65848"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=65845"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=65845"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=65845"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}