WSBW Summary Blog

So, another fantastic WSBW Summit has been and gone and the neuco Executive Search team have finally been able to find the time to debrief on what was an incredible show. It was another sold-out event and there was a palpable buzz around the Westin with a huge number of topics taking centre stage at the summit, both on the panels and in the hallways and meeting rooms dotted around the venue.

We’ve summarised a few of the key talking points from the event below.

Direct to Device:

Unsurprisingly, direct to device solutions were the hot topic of discussion throughout the show. While it seems universally agreed by most in the industry that there certainly is a market, there seems to be little consensus on just how big that market will be and just how long it will take to realise the potential of these services.

Where’s the money?:

You will, I’m sure, have seen several announcements for funding rounds during the summit. However, something we heard from a few different people was that there seems to be a dwindling appetite for larger funding rounds that some of the more established start-ups need right now. As the NewSpace market begins to mature, and with substantial prior investments still awaiting a return on investment, investors are understandably becoming more cautious.

Starlink:

LEO connectivity has been a hot topic for a few years now but there was one provider that was spoken about more than any other and there didn’t seem to be many panels that didn’t touch on at least a brief discussion of Starlink. What is obvious is that the theme of the discussion has certainly shifted, there are no longer questions around the viability of such solutions and now much more of a focus on how other providers will differentiate their offering from Starlink in order to mop up the obvious demand.

GEO Still Has a Part to Play, Especially for Regional Operators:

While LEO certainly dominated discussions, it’s obvious that GEO is not dead yet. There were a number of regional operators all shunning LEO platforms in favour of GEO as the need for a lot of capacity in a small footprint means that it is still the platform of choice for them. A further show of support for the GEO market came with the announcement of an additional $28m in funding for Swissto12 to keep up with the demand for their HummingSat platform.

We’re already counting down the days until next year’s event, can’t wait to see you all there!

Investing in the European Space Market

The European space market has been growing over the past few years, leading to an increase in investments from a number of firms. On Episode 17 of The Satellite & NewSpace Matters Podcast we were joined by Árisz Kecskés, who is the Business Development Manager at Remred and Investment Manager at Herius Capital, the latter of which is one of the very few space-focused venture capital firms investing in startups in the European Space ecosystem. Árisz shared his insights into the European space market, including the opportunities he sees for other investors in the sector. Read on to learn more!

Where would you recommend investing in the European space market? 

The valuation landscape in Western Europe is very different from how companies are valued in the Central Eastern European region. The trick is to find these ‘rough diamond’ companies and support them throughout their development stages. If you’re looking for early stage startups, there are a lot of good companies in the Central Eastern European region, whereas Western European countries are typically in further stages. 

What you see on the market is a different approach to the industry itself. Something that we’ve noticed is that  the Central Eastern European region was more research oriented, which is tied into the heritage of how the space industry has evolved in those countries. Their transition into the industrialised space was a bit more difficult, which is understandable. So it depends what you want to invest in, but there’s lots of great companies out there. 

What future opportunities do you see for the space sector across Europe?

It depends on how risk averse someone is. I would say that a key opportunity lies in the Earth Observation market, which is seeing a lot of growth. There is still a lot of growth that can be seen in some upstream markets such as debris, and the inordinate servicing market is something that we’re very closely monitoring too. They do pose a lot of risks, but we see a lot of initiatives and enabling technologies that make that segment very interesting to look at. I’m not sure if investing in these technologies is something that we would do as an early stage investor, but it’s definitely something that I see a lot of growth opportunities in.

To learn more about Árisz’s work and other aspects of the European Space Market, tune into the full episode of The Satellite & NewSpace Matters Podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

The Humanitarian Applications of Satellite Technology

On Episode 16 of The Satellite & NewSpace Matters Podcast we spoke to Anastasia Kuzmenko, the VP of Marketing & Communications at the IEC Telecom Group, about the cutting-edge technology that they are developing in the satellite space. She shared how their satellite technology can be applied to various verticals, including the maritime and humanitarian sectors. Read on to hear more!

What does the industry need to do to ensure that there is an increased focus on the success of humanitarian applications for satellite technology?

When it comes to use cases, increasingly specialised softwares and optimised applications would allow humanitarian missions to carry out their operations in the remote areas. Imagine a situation where we are in a remote settlement, where there is no bank infrastructure, no hospitals, etc. One of the latest use cases in the humanitarian industry was the launch of mobile units that could deliver services to those kinds of settlements on a certain schedule. This is where we need to think outside of the box and ask what else can be there? 

I can imagine specialised stations or applications which would help to bring more educational opportunities to those remote communities. We can even provide entertainment. A lot of social development or social integration happens through the arts. Being part of the wider culture, being able to see movies and documentaries – to be part of this social world in general – is exceptionally important. The humanitarian field in general should utilise the capacities of satellite telecommunication in order to power different digital applications and bring those skills to the remote areas.

What do you think we can do to focus the technology and help close this divide? 

We definitely need to look at satellite solutions as systems. The fact that we have LEO networks which provide high speed and low latency is very important. However, it’s not enough to deliver impactful solutions on the ground. The humanitarian solutions represent a complex architecture, where you would have the terminal, the backup, and then a range of services catered to a specific need. 

When we are out in the wild with those remote communities, we can’t just rely on one terminal to deliver the connectivity and services we need. We have to  consider the fact that any satellite telecommunication is vulnerable to external factors, whether it’s a weather condition, geographical landscape or other obstacles. In order for those applications on the ground to run continuously, we need to have a system where there will be a main link and a backup. We need continuous connectivity. But what do we do with this connectivity? This is where it’s important to have network management tools which will allow us to control the quality of the network and make sure it’s utilised in the most efficient way. 

Next we should consider the value added services. How do we want to filter this network? How do we want to optimise the bandwidth of this work network? How do we distribute these capacities? Solutions such as Expand are equipped by a network management system on a voucher capacity, which means that if you set up this kind of system in the humanitarian camp we could issue individual vouchers to the inhabitants. The same way we distribute food, we can distribute connectivity. 

What really matters when it comes to satellite technologies within the humanitarian field is to have a clear understanding, not just of the capacity, but also of the functionality or the operator. It’s about delivering complex solutions that are specifically designed to solve a specific issue. It will equip all the  necessary tools to run smoothly and ensure operational continuity throughout the exploitation.

To learn more about using satellite technology for humanitarian purposes, tune into Episode 16 of The Satellite & NewSpace Matters Podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Applying Satellite Imagery to Different Markets  

With the rise of on-satellite data processing technology, satellite imagery is becoming increasingly accessible. On Episode 15 of The Satellite & NewSpace Matters Podcast we were joined by Jakub Dziwisz, CEO and founder of Orbify, to talk about Orbify’s platform and the marketplace for Earth intelligence applications. Jakub’s background is in software engineering, giving him some great perspectives into the application of satellite imagery, which he shared with us on the podcast. 

“In general, there is a great potential across a variety of vertical threads. Forestry management has some untapped potential. Similarly, when it comes to farming and marine monitoring there is a huge amount of work that could be done. Satellites can also be used to create smart cities and monitor air quality. There are five satellites collecting a lot of useful information about air pollution and air quality at present. 

To give you an example, last October I was in San Francisco attending the Geo for Good Conference by Google, and I talked to the person who worked for Copenhagen municipalities on air quality analysis. In Copenhagen they realised that 10% of citizens are dying due to diseases caused by poor air quality, and Copenhagen isn’t one of the most polluted cities. They decided to do something about it to try to revitalise the city, and based on an analysis that was made, they found that certain areas of the city are more polluted. So, they put domes in their parks so that people could spend time outside under those and be shielded from poor air quality. They did the same for bus stops to help people inhale less pollution. At the same time they built playgrounds in cleaner areas to encourage people to congregate there and spend more time in the clean air spots. 

That’s a great example of how municipalities and local governments can take advantage of Earth observation to revitalise their city. The downside of the story is that building that analysis took them two months with RBI, whereas that’s something you can do in two hours with current technology. More local governments could take a look at what’s happened in Copenhagen and take actions too.

There is a lot of space for improving how we use data to react to crisis situations and emergency responses. It’s already starting to happen, but I think that there is a lot more scope for development. To go back to the forest monitoring vertical, we can do much more if we build solutions that can be used by citizens to understand what is happening in the environment around them. 

I can give you an example from my neighbourhood. I’m living in a relatively green area of Krakow, where one local businessman bought a parcel of land and started doing some weird transformation. He cut all the trees down and brought in some heavy machinery to remove mounds that were over there. He’s devastating the terrain. Now no one is able to stop him. If we gave these observation tools to normal people we could see that something unwelcome is happening in the neighbourhood and stop it before it goes too far. Normal people are just trying to understand what’s happening around them.”

To learn more about what’s happening in the Earth observation sector, tune into The Satellite & NewSpace Matters Podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Exploring Space as a Service 

With the improvement of on-satellite technology there has been a surge of interest in hosting ‘space as a service’ business models. On Episode 14 of The Satellite & NewSpace Matters Podcast we were joined by Dennis Silin, who is the CEO and Founder of Exodus Orbitals. He established Exodus Orbitals in 2019 as a ‘satellite as a service’ space startup based in Toronto. Here are Dennis’s insights into the ‘space as a service’ business model:

The primary direction of the ‘space as a service’ business models is making satellite capabilities more available by democratising access to them. End users want fast, cheap and effective satellites, with easy access to a digital service like storage or cloud computing. They also want minimal hassle with the maximum amount of use for the least amount of money. For existing satellite companies, even NewSpace ones, it doesn’t make sense to offer something that will cut into their own profits. They’re looking for ways to create those ‘as a service’ platforms while increasing their revenue, not decreasing them. 

There’s a conflict between what the customer wants and what the vendor or satellite operator wants. At the same time, the whole nature of ‘as a service’ is making those services cheaper, more accessible, and costing less than the alternative. In my opinion, the incumbents are not going to solve this problem, even if they do know how to solve it. Why would they do something that will disrupt their own business model? Why would companies like Planet Inspire offer their satellites for a low cost if they make more money by just selling data from them? 

As a new company, Exodus has nothing to lose and everything to gain from this model. We’re doing something that’s not really been executed yet, giving users a fast, cheap and efficient way of accessing space, mirroring the development of the IT industry. If you remember the history from the 1960s, there were one or two big companies offering mainframes which were so expensive you couldn’t even buy them, you could only lease them from IBM. It would cost you a lot of money per month just to use the computer, but in the ‘70s and ‘80s, personal minicomputers appeared and offered what businesses needed at a lower cost. Now there is a computer in every pocket. That’s what I want to build in the satellite industry; I want every person on earth to have their own personalised virtual satellite. 

It won’t happen immediately, we’re going to start with a b2b model. There is a company that has a few houses for rent and they want the satellite specifically tailored to track the state of the roofs with their own data feed. That type of customised mission is what we are trying to enable on our platform. We’re building a pipeline for these missions through software apps that you can use to deploy directly on the satellites. Earth observation satellites can be used in this manner, tailored to your specific, customised, local application. It’s not going to cost you an arm and a leg to make it affordable for small or medium businesses around the world. That’s our vision. 

To learn more about the work that Dennis and Exodus Orbital are doing, tune into The Satellite & NewSpace Matters Podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Creating a Career in the NewSpace industry

In the last few years, we’ve seen a big shift away from data processing on the ground, to having a much more advanced computing and processing power in orbit. Some people are saying that we’re entering the era of smart satellites and spacecraft. On Episode 13 of The Satellite & NewSpace Matters Podcast we were joined by Iulia Marushchak, the Head of Business Development at KP Labs, to discuss that claim. KP Labs are a Polish NewSpace company who aim to accelerate space exploration by advancing autonomous spacecraft operation using artificial intelligence and onboard heating and processing systems. Iulia’s career has given her valuable insights into the changes that onboard processing will bring to the industry, which she shared with us here:

I will take a step back to the start of where this onboard data processing idea is coming from, because the subject has gotten quite popular in the last few years. A lot of people are wondering why this is happening from outside the NewSpace sector. I would start in the Earth Observation sector. The amount of the data that is generated in the Earth Observation sector is tremendous. We have more than 1000 satellites circling the Earth, and there are more and more constellations coming from the commercial sector too. The amount of data that needs to be sent, stored and protected before it comes to the final customer in the form of the application or a service that they’re using is huge. There is a long wait, because this data is coming in raw to the data centres. This data is often very complicated, which is made worse by the very fast development of sensor resolution and frequency. 

One hyperspectral image is about two gigabytes. It would take around seven minutes for the transfer of one picture, which wouldn’t give us much information. The amount of data we receive allows us to extract a lot of necessary data, but the typical length of a communication session is from 5 to 10 minutes. That’s where the speed of data analysis becomes a problem. People started looking for solutions to this problem, and that’s when they figured, why should we send all the images to the earth when we can process them in space?

In addition, when a camera takes a picture, quite often, it takes multiple shots. Some of them are cloudy, some of them have some interference, and it ends up with us having tons of pictures which are not relevant for us. That creates a lot of issues on the ground. In addition, if we talk about the real time services, first you have to segment these pictures, pre process them and extract what you can use. Only then could you create what you need from the images. The idea of processing data onboard the satellite is basically a solution to limit the data that comes from the satellites to the ground. 

For crisis management, this is extremely important. If we have wildfire detection or flood detection systems and things like that, these services can change and save lives. We’re faced with a lot of challenges to make this happen, because you need powerful data processing units on board, and at the site at the same time, there are a lot of new missions coming. Now I think we could say that we have found some solutions to the problem. 

When it comes to onboard data processing, there is also telemetry data. That’s important because it allows us to detect anomalies on board of the satellite and react quickly, taking measures to lower the risk, so that the mission will be successful. For the NewSpace sector that’s quite important because missions are developing fast, and they need solutions that allow them to manage the mission on board. At KP Labs we’re creating an ecosystem of products that would answer both of those needs. We’re building onboard data processing and supporting the operations of the satellite. We call this ecosystem the Smart Mission Ecosystem, and it consists of both smart satellites and smart payloads. 

To learn more about the Satellite & NewSpace industry, tune into our podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Inside ReOrbit’s On-Satellite Systems

On-satellite software has become a hot topic over recent weeks. On Episode 12 of The Satellite & NewSpace Matters Podcast we spoke to Sethu Suvanam, CEO of ReOrbit, about how his company is creating potential through their new platform. Sethu moved into the satellite industry after finishing his PhD in information and communication technology, and he has since gone on to found ReOrbit, the satellite company that’s disrupting the industry with their reusable, autonomous and software-defined micro satellite platform. 

What can we expect to see from ReOrbit next? 

If you look at the space industry today, the core element is actually data. That’s what is generating revenues. If you go to any operator, they are actually more worried about the satellite in itself, which shouldn’t be the case. On the ground, if you look at how things are working with cell phones, nobody’s worried about the hardware equipment, they’re talking about ‘How much should I charge for megabits?’. Data is what we should all be considering. We’re now planning to build infrastructures that optimise the data flows in space so that the operators can just think about the fastest way of getting the data. We are envisioning our future view as very similar to Cisco and how they brought about a connectivity revolution for the computer industry. We want to bring a similar connectivity revolution to the satellite industry.

The focus on software within the satellite and space industries has a lot of potential. How do you think a software-first approach will create potential?

Typically, a Space Systems Engineer will design the hardware first, then think about how they can write the software. The moment the machine changes though, the requirements are not the same. That’s why space missions have at least 30% NRA. 

We’re developing the software first. Going software-first opens up your market, because you can then buy best in class hardware. It also enables us to start developing applications and functionalities onboard the satellite. If you want to have those architectures, then you need to get out of this hardware-first approach and put software at the centre. At the end of the day, it’s all about optimising the data flows and data routing, which is all done on the software, not the hardware. Going software-first also significantly cuts costs.

What are ReOrbit’s plans for the next 12-24 months?

At the end of the day, the crux of any company should be to generate revenues. That’s what we’re focused on; to keep increasing our revenues and profitability. We’re also building a sustainable company. It’s not sustainable in the clean air, clean energy sense, it’s more like creating a long-lasting company where generations of people can work. We are definitely growing and scaling up our team. We are now onboarding some more superstars of space. We’ve been quite successful in closing big contracts in the last couple of years, and now we are reaching a stage where we will start delivering on those. This fall it will be critical for us to deliver what we promised on time and at the cost we quoted. 

To learn more about the work that Sethu and ReOrbit are doing, tune into The Satellite & NewSpace Matters Podcast here.

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Commercialising the European Launcher Market

The European launch market has seen a recent boom, thanks to increasingly accessible resources. To unpack this phenomenon, we spoke to Jörn Spurmann on Episode 11 of The Satellite & NewSpace Matters Podcast. Jörn is the CCO and co-founder of Rocket Factory Augsburg (RFA), a NewSpace launcher business that provides flexible and low-cost access to space through their launch system RFA ONE. He shared his perspectives as one of the leading experts in the European launch market. 

What are your thoughts on the commercialization of the European launcher market?

I think we could do far more things in space if we spent budgets more efficiently. If we look at the US Navy a couple of years ago, when they couldn’t fly anything into space anymore, they realised they couldn’t continue developing these things themselves, so they started commercial competitions to buy services. That’s something we should do in Europe. If the European Space Agency defined what they needed in terms of service, they could invite tenders and see what happens. If no one replies, they can do it themselves, but what if we could make collaboration happen? 

We’re at a great point in the space transportation industry in Europe. There are a number of companies that are well financed and could produce commercial alternatives to the current industry monopolies. These companies have the competence to launch systems and infrastructures, even if it’s only on a small scale. That is what the government institutions will leverage to destroy the monopolies that we currently have on the launch market in Europe. This will create commercial competition around launch system developments. 

There’s a lot of speculation about how investments in Europe are going to change. Government bodies might be able to get away with spending less money and getting the rest privately funded.. That gives them a larger budget to spend on useful things, right? They should invest in whichever service will deliver connectivity or observation to the public, and use those models to understand climate change and how to influence it for the better. These are the things they should be working on, along with scientific exploration of the solar system or human spaceflight. Having commercial competition in the launch market will significantly advance those efforts. 

Why do you think it has taken the commercial world so long to think that the launcher market is one that they should be active in?

It comes from those monopolies. Every continent has their own institutional agencies or monopolies that are fed money by the system, so there’s typically very little incentive to compete at a cheaper rate. When there’s no competition, companies can make it as expensive as possible to maximise their own revenues. That’s the wrong motivation. Satellites becoming smaller inspired small launch systems, which are easier to develop. That’s why the private finance industry actually put money into our sector, because it’s a shrinking product and a growing market that’s easy to disrupt. 

Why do you think we’ve got a huge number of companies looking to break into the launcher market at the same time?

Launches have become simpler. The biggest difference lies in going from a plan on PowerPoint to building hardware and having successful traction on test milestones. Players in the industry are being differentiated by their ability to design a launch system, get it to the testing stage, and get stuff up in the air. A lot of university students are exploring rocketry, specifically with paraffin, which is inherently safe. That’s great because students can do practical lessons, and we benefit a lot from the ideas they have. 3D printing also makes manufacturing much simpler. This combination of technologies and education systems makes it possible to do small launch systems with only a few people, which is changing how the industry is perceived. 

What do you think is the most important development to make sure that we have a successful launcher market here in Europe? 

It’s not so much a technical development but more of a change in governance that we need. We also need to keep up with our own competition. In Germany, there is a competitor 100 kilometres away from us. I’m totally convinced that it motivates us to outperform them everyday, because we can feel how close we are. Competition is the secret ingredient to having great products and a great business. We need to create all classes of launch systems in Europe if we want to catch up with the US, because they are more advanced in the vehicle agenda. If we want to get in on this boom in the space industry, we have to focus on competing with each other in Europe as well.

To hear more about the state of the launch market in Europe, tune into The Satellite & NewSpace Matters Podcast here

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

Communicating The Satellite & NewSpace Industry to Outsiders

On Episode 7 of The Satellite & NewSpace Matters Podcast we spoke to marketing and communications expert Dave Hebert. With an impressive career across the communications industry, Dave moved into the space sector in 2016 and is now the Vice President for Global Marketing and Communications at Astroscale. Having worked with companies such as MITRE and The Aerospace Corporation, Dave’s insights on communicating the space industry to the world are at the forefront of the conversation. 

How do people currently see the Space industry?

There is a contradiction in the public perception of space. On one hand it’s an unending source of inspiration, creativity and wonder, and it’s a permanent fixture in the pop culture zeitgeist. Franchises like Star Wars and Marvel that are in many ways space-based generate interest around the world and billions of dollars in revenue. That actually speaks to the problem that the industry faces, which is that space remains in that fantasy realm for so many people. 

On the other hand, space is seen as an ivory tower that is meant for a select few, not for everyone. It’s become inaccessible and expensive – a playground for billionaires. The public opinion surveys about civil space programmes often reveal that people are very excited about civil space and exploration, but when they see the price tag, they baulk at it. When you look at wider civil spending, that number is actually relatively small, but that’s the tension of the economy. High profile celebrities and heads of state are vilified for spending money, effort and attention up in space when we have so many issues down on Earth. The world just doesn’t get it. We need to continue having that conversation and help the world understand how space can serve as a vehicle for improving quality of life on Earth.

What do you think is one of the most important challenges that the industry needs to overcome to guarantee its future relevance in the minds of the people outside of it?

The industry is facing consolidation. There’s been so much growth in the space sector, but it’s not realistic to expect that growth to be evenly distributed across the industry. Value creation, data products and services that connect with other sectors will help us build relationships. That’s an important direction for the space industry to take. What are other sectors’ aspirations? What are their pain points? What can space do to help with those things? Terrestrial industries are fundamental to quality of life, so let’s ask ourselves ‘What is it they’re trying to do? Is there any way that we can make it easier for them to do that or overcome the obstacles they face in doing it?’ We’ve defined the end user in the space sector as the companies who buy our data, but there are people two or three steps down that ladder who have no idea what space could do for them, even though they rely on it. We need to start focusing on those people instead.

How do you think we can address the disparity between people’s perception of our industry and the reality of what we do?

It’s all about bringing people into the sector. The first question that space businesses and organisations need to ask themselves when they’re recruiting is, ‘Does this position have to be filled by somebody who’s already in the space sector?’ There are some roles where the answer is a very quick, immediate, yes, but the question should always be asked in a very earnest way. If you can’t answer yes, you have to say, ‘Okay, well where do we never show up?’ Identify those communities and say, ‘Hey, we need people like you, are you aware that a job in the space sector might be an opportunity for you?’ We should be inviting people in. 

We also need to be equipping our recruiters to diversify their networks. Consider questions like ‘How are you reaching out? Are you engaging with universities that represent an excellence in skill sets that are not related to the usual circles you run in? Are you approaching diverse candidates that you don’t normally pursue? Are you engaging professional societies that are not in the space sector?’ The burden is on us to go outside of our comfort zone and find underrepresented communities and say, ‘We need people like you’.

To find out more about creating diversity in the  sector, tune into The Satellite and NewSpace Matters Podcast here. 

We sit down regularly with some of the biggest names in our industry, we dedicate our podcast to the stories of leaders in the technologies industries that bring us closer together. Follow the link here to see some of our latest episodes and don’t forget to subscribe.     

The Future of GEO in the Space Industry

As investment patterns have shifted through the Satellite & NewSpace industry, some people have called GEO satellite’s relevance into question. On Episode 10 of The Satellite & NewSpace Matters Podcast we spoke to Gregg Daffner, the CEO of GapSat, about the role of GEO satellites and how that can continue. Gregg is a well-known face in the industry who previously co-founded Asia Broadcast Satellite, before creating an innovative startup in a satellite industry that leases in-orbit satellites to satellite operators. Usually, this is until they can build their own custom satellite, but also provide additional capacity when internal crises occur. Here’s what Gregg told us about the future of GEO:

Non-geostationary satellites are the hot item of the moment. There’s no question that it’s on everyone’s minds. It’s sexy. It’s responsible for generating an enormous amount of interest in our industry. Elon Musk has almost single handedly rekindled excitement for people who are considering a career in space, communications, satellites and so forth. It’s one of the best things that’s happened in well over a decade. Bringing new blood and new interest into the industry is becoming a household discussion topic, and it’s really refreshing; it portends a bright future. I think that a lot of that is hype, though. Hype has a positive effect, but it’s also misled a lot of people as to what the future is going to look like. If you’re realistic, the truth is that for a substantial number of services, geostationary provision and infrastructure is still a much more cost effective way of delivering bits. 

LEO is specifically good for low latency uses and for covering areas that are out of  geostationary satellites’ reach. The furthest northern and southern latitudes, especially the poles, only have patchy service from GEO, but that’s not an issue for LEO and MEO satellites. If you’re a high speed trader on the stock market, there’s no question that you want to be doing something that’s the shortest fibre length and or the shortest stop to a satellite. LEO and MEO can provide that, but for a significant percentage of all the communication that is carried by satellite, that is not the principal driver. LEO is important geographically, and for certain kinds of services, and maybe for supercomputers that can’t have those delays, but for most things it’s a non-issue. 

When it comes to cost efficiency, most users don’t need low latency, but they do need low costs. There are two factors in costing, which is antennas and infrastructure. Antennas are much more expensive, because they have to track speed and movement if you’re doing physical tracking, mechanical steering, etc, and that’s expensive. That’s where having GEO satellites is better. You only need three satellites and three orbital locations to cover the entire world (with the exception of the poles), with overlapping coverage. If you have three of them placed equidistantly around the globe, you can cover the entire Earth, with most locations capable of seeing two satellites. That gives you diversity routing, and removes issues of looking angles, and a blockage of buildings, mountains, trees, etc. To do the same thing with LEO, you need hundreds, maybe even thousands, of satellites, because they’re so close to the Earth. 

The bottom line is that the infrastructure costs of building, launching, controlling and replacing all of those satellites is really high. That’s before you’ve even factored in the costs of potential pollution in space and the potential for unintended consequences like collisions.  From what I can tell, between the additional costs for building, launching and operating a non-GEO system versus a GEO one, the costs are a magnitude greater for less capacity. If you’re looking at broadband, you’re going to be able to get a whole lot more stuff through a geostationary satellite than you can on smaller, lower-orbit satellites. The production of ground equipment like mobile phones and tracking antennas will probably never be as inexpensive as a GEO, because the LEO or MEO antenna would be able to communicate with a GEO satellite as well. 

Satellite has the potential to provide communications where there is no terrestrial alternative. The three areas where that takes place are aeronautical, maritime and remote or rural areas. Anywhere there’s no cables is an area for satellites to step in. In the old days, communication satellites were used primarily for voice communication, and they were placed in the middle of oceans to connect the continents. As cables have been run, people have stopped focussing there for satellites. What was once the ideal location for them has shifted over to land masses, and less over water masses, because that’s where people are communicating and where broadcasters are distributing their signals. 

When you’re talking about aeronautical and maritime, you’re not talking about where people are living and acting, but where they’re travelling. Suddenly, something which was a quaint idea has become a hot idea for the current day. In every part of our lives, the amount of broadband capacity we need access to is increasing, and the same is true for airlines and ships. When you position satellites mid-ocean, roughly 120 degrees apart, those three satellites have ideal coverage for both of those services, while also being able to reach the landmasses on the edges of those waters. Looking to the future, GEO isn’t going anywhere. 

To hear more about Gregg’s work at GapSat and his take on the wider Satellite & NewSpace industry, tune into The Satellite & NewSpace Matters Podcast here

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