Despite the growing enthusiasm for satellite-based phone connectivity, there remains a lack of agreement regarding the pace of its market expansion and even the appropriate terminology for this evolving field.
For those enterprises engaged in establishing satellite constellations to cater to existing mobile phone services, there is a strong belief in the rapid growth of this market. An executive vice president noted their surprise at the market's level of interest and attributed it to the strong desire of customers to stay connected.
To gain a clearer perspective on this matter, it is beneficial to briefly explore the topic of satellite connectivity, its potential by way of "sat phones" and the challenges it faces.
What Is Satellite Connectivity?
A satellite phone, often referred to as a sat phone, is a device that establishes its telephone network connection by communicating with Earth-orbiting satellites. This stands in contrast to contemporary smartphones, which primarily connect through terrestrial cell towers.
Satellite connectivity encompasses all communications made via satellites, including those facilitated by satellite phones. Interestingly, contemporary smartphones are also gradually incorporating satellite connectivity into their capabilities.
Satellite Phones vs. Cell Phones
The fundamental difference between satellite phones and our conventional smartphones lies in how they transmit signals.
As mentioned, cell phones predominantly establish connections through land-based cell towers. Imagine the Earth's surface as a vast grid, with each grid unit representing an individual cell. Each of these cells relies on a dedicated cell tower to cover its specific geographical area. When you're in proximity to a cell tower, your cell phone experiences optimal network reception. However, as you move from one cell to another, your phone seamlessly switches to the new, closer cell tower. The challenge arises when there's no nearby tower; your phone loses signal. Consequently, you lose network connectivity, rendering your phone incapable of receiving calls, sending messages or accessing the internet.
Urban areas with high populations boast a dense network of cell towers, ensuring robust coverage. In contrast, rural regions with sparse populations feature fewer cell towers, leading to more frequent call drops and "out of network" errors. Remote areas are even more susceptible to a lack of network connectivity due to the absence of economies of scale required for comprehensive network service. Nonetheless, the need for network connectivity persists in all such areas, particularly in emergencies.
This is where satellite phones come into play. Instead of relying on ground-based cell towers, satellite phones link up with Earth-orbiting satellites. The phone's signal is beamed directly to the nearest satellite, with each satellite covering a considerably larger portion of Earth compared to a single cell tower. While satellite phones do necessitate an unobstructed view of the sky and a clear line of sight to the satellite, they eliminate the necessity for the construction of an extensive network of cell towers in order to ensure basic network connectivity.
Establishing cell towers across vast land masses, especially in sparsely populated or legally restricted areas, is often impractical. Satellite phones, being independent of land-based towers, remain operational during disasters that otherwise disrupt the cell tower network, such as natural disasters or conflicts. This critical capability fulfills needs that conventional cell phones cannot address.
Navigating Opportunities and Challenges
When exploring the potential timelines for this satellite-steered “direct-to-device” market to reach $1 billion in annual revenues, opinions vary in terms of immediacy and approach. Some see rapid growth, emphasizing the critical role of speed in seizing opportunities. Others have a more cautious mindset, envisioning a longer journey ahead. The latter see the need for substantial investments in both the technology and the time required to get systems and capabilities in place. Broadband data is seen as the primary growth area, and the necessary advanced technologies and significant capital outlays are already in play to make it a reality.
In the industry’s aforementioned debates regarding the correct terminology for this market, the industry term "direct-to-device" competes with the technical acronym "non-terrestrial networks" (NTN). Some argue that these terms don't effectively convey the market's potential to the public, suggesting "sat-to-phone" as a more descriptive alternative that could drive growth for the satellite industry. Others believe that consumers' primary concern is connectivity, regardless of the name chosen.
In summary, the satellite-based phone connectivity field is one of both optimism and uncertainty. Enterprises entering the satellite sector are confident in rapid growth driven by customers' primary desire for connectivity. Satellite phones, connecting directly to Earth-orbiting satellites, overcome the coverage challenges faced by traditional cell phones, particularly in remote areas and during disasters. And with such unprecedented access, the satellite industry is poised to harness these opportunities and surmount these challenges, with broadband data as a key growth initiator.
By Sahar El Zarzour, Senior Editor, Telecom Review