Saturday, February 13, 2021

SpaceX Starlink is coming to low-income nations

I expect that many Starlink customers in low-income nations will be organizations in which connections are shared.

The introduction of the Internet into a community will have unanticipated side-effects on the community and the individuals in it.


Early Indian VSAT terminal
Beta testers in the US and Canada paid $500 for a terminal and are paying $99 per month for the service. The beta tests began in high-income countries, but SpaceX is beginning to roll Starlink out and will include low-income nations, for example, India.

Last September, SpaceX responded to a request for consultation on a roadmap to promote broadband connectivity and enhanced broadband speed from TRAI, the Telecommunications Regulatory Authority of India. In response, SpaceX made several recommendations that would enable them to quickly begin service in India. The talks between SpaceX and TRAI must be going well because, on November 2, Elon Musk tweeted that they would be operating in India "As soon as we get regulatory approval. Hopefully, around the middle of next year".

Musk is famously optimistic, but let's assume they are authorized by TRAI -- will rural Indian consumers be able to afford the price SpaceX is charging in the US? For now, the price of Starlink service will be the same in every nation, but that may change if they find they have excess capacity after more satellites are launched.

Loading Pikangikum terminals
(from 5-minute video)
Regardless, many Starlink customers in low-income nations will be organizations in which connections are shared rather than individual homes. We already see such examples among the current beta testers. One beta site is the Pikangikum First Nation, a 3,000-person indigenous community in remote Northwestern Ontario, Canada where Starlink is serving community buildings and businesses as well as residences. Other Starlink beta testers are Allen Township, outside of Marysville, Ohio, and the Ector County, Texas, and Wise County, Virginia school districts which are installing Starlink terminals in student homes.

I expect that many Indian installations will be like these -- serving community organizations, clinics, schools, businesses, telecenters, etc. rather than consumers in their homes. Of necessity, low-income nations have a long history of shared Internet resources and India is no exception. My colleagues and I found Internet kiosks and telecenters in India in the early days of the Internet, click here and here, and in other low-income nations. For a richly illustrated global tour of early telecenters and their applications and impact, click here. (Jim Cashel has suggested that SpaceX should focus on schools).

SpaceX CEO Elon Musk has quipped that setting up a Starlink connection is as simple as pointing the terminal at the sky and plugging it in and that seems to have been close to true for the Pikangikum community. The Pikangikum installation was spearheaded by FSET Information Technology. FSET delivered the terminals and installed the first 15 then community members took over and installed 45 more.

But what about more difficult installations? A casual perusal of the Starlink discussion on Reddit shows that some users have to build creative mounts to connect in wooded or otherwise obstructed areas. Skill is needed for installations in areas where there is no clear view of the sky or some local networking is used to share satellite terminals.

Bill Clinton and Al Gore at
Netday96 Source
Again, of necessity, technical improvisation by citizens is common in low-income nations. Think of community "street nets" which may be small like this one in Gaspar, Cuba, or large like SNET in Havana. Building networks like these requires technical skill, tools, and supplies, and there may not be an FSET around to help. SpaceX and other constellation operators will need to support rural communities by providing online and in-person training and a marketplace for tools and supplies. The Sun Microsystems Netday initiative for installing local area networks in schools provides an early, successful example of this sort of vendor support of community networking.

Of course installing terminals is just the tip of the iceberg. A community or organization network must be financed and users trained. Again, the constellation operator should play a supporting role. Note that the Musk Foundation has just made a "significant" contribution to Giga in furtherance of their goal of connecting every school to the Internet. I don't know anything about the terms of the grant -- whether it is cash or subsidy -- but since terminals are expensive and SpaceX is selling them at a loss, perhaps the schools will receive free service. That would cost SpaceX essentially nothing as long as the school was at a location with unused capacity and it could be phased out over time -- something like the National Science Foundation phasing out university connections in the early days of the Internet.

Since Teledesic in the 1990s, prospective constellation operators have promised that Internet connectivity would improve the health, education, and economy of unserved regions and entertain the residents as well, but we are no longer naive and have learned that there may be negative social and personal side effects. For example, in 2011 only 1% of individuals in Myanmar were Internet users. Myanmar privatized mobile connectivity in 2013 and the first international link was activated in March 2014. In June 2014 Aljazeera was asking whether Facebook was amplifying hate speech against the Rohinga.

On a lighter note, I'd hate to see all the Pikangikum teenagers hooked on video games. The introduction of the Internet will have unanticipated side-effects on the community and the individuals in it. It's an opportunity for a 21st-century Margaret Mead to live among the Pikangikum and other communities to observe the changes.

Update 2/17/2021

I used India as an example in this post, but SpaceX is active in several other low-income nations. They have either opened an affiliate office, applied for or received authorization to offer service, or begun negotiations in the following nations: South Africa, Nigeria, The Philippines, Chile, Columbia, and Mexico. A Teslarati article also mentions Brazil and the Caribbean. One of their affiliate offices, SpaceX Netherlands B.V., has subsidiaries in several European nations, and that may be the case with the Caribbean office that Teslarati mentions. It is a long shot, but I hope one of the Caribbean nations Starlink is talking to is Cuba. (More on that in another post).

Update 2/18/2021

National and local governments, non-governmental organizations, foundations, etc. will also subsidize broadband service from SpaceX and other LEO satellite providers. For example, SpaceX has tentatively been granted $885 million to subsidize rural connectivity in the US and Telesat has been awarded C$85 million for rural connectivity in Canada. One can envision arrangements in which a government or foundation pays for the purchase and installation of equipment and the satellite operator provides free or discounted service. As mentioned above, this would cost the service provider nothing as long as they had excess capacity in the region being served.

Tuesday, January 26, 2021

SpaceX is first with inter-satellite laser links in low-Earth orbit, but others will follow.

SpaceX is willing to subsidise expensive hardware like laser links and end-user terminals in the short run.

When SpaceX first announced plans for Starlink, their low-Earth orbit Internet service constellation, they said each satellite would have five inter-satellite laser links (ISLLs) -- two links to satellites in the same orbital plane, two to satellites in adjacent orbital planes, and one to a satellite in a crossing plane. They subsequently dropped the crossing link as too difficult and, when they finally began launching satellites, they had no laser links. Last year they tested ISLLs on two satellites.

Last November, SpaceX requested that the FCC modify their license to allow them to operate 348 satellites at an altitude of 560 km and an inclination of 97.6 degrees in order to serve the polar regions. This month, the FCC postponed their decision on the 348 satellites, but granted SpaceX permission to operate ten satellites to "facilitate continued development and testing of SpaceX’s broadband service in high latitude geographic areas" and those ten satellites were launched as part of a 143-satellite rideshare.

That rideshare was a record-setter, but it is more interesting to note that those ten polar-orbit satellites were equipped with operational ISLLs and Elon Musk confirmed that the remaining 338 would also have ISLLs if approved. In the same tweet, he confirmed that their inclined-orbit satellites would be equipped with ISLLs next year, but only the polar satellites would have them this year.

SpaceX must be confident that the full 348 satellites will be authorized since the first ten, while useful for tests, would not provide meaningful connectivity and my guess is that the polar-orbit satellites will be able to link to the inclinded-orbit satellites with lasers when they begin launching next year. (Note that Telesat has applied for a patent on a Dual LEO Satellite System in which polar and inclined-orbit satellites communicate with each other).

How about the other LEO satellite projects?

Telesat plans to launch a hybrid constellation with laser links connecting polar and inclinded satellites and is already working with Mynaric, a German laser communication company, on Blackjack, a LEO constelltion being developed for the US Deparrtment of Defence, so Mynaric may supply the lasers for Telesat's satellites. It's also interesting that Mynaric's US office is in Hawthorne, California, home of SpaceX. OneWeb initially planned to equip their satellites with ISLLs, but they decided not to for cost and political reasons. As far as I know, Jeff Bezos' Project Kuiper has not officially committed to having ISLLs between their satellites, but they are hiring optical engineers to work on the constellation and are planning applications that will benefit from ISLLs. I don't know about the Chinese broadband LEO compaines, but at least one Chinese company Intane, produces space lasers. (Mynaric has withdrawn from the Chinese market due to political pressure).

HydRON connecting the ground,
LEO and GEO satellites and deep space
In the long run, I expect that every LEO broadband provider that survives, will be linking their satellites with ISLLs -- doing so will lower latency and reduce the need for terrestrial ground stations. Furthermore, I expect we will see ISLLs between LEO, MEO and GEO satellites. Telesat and OneWeb may have the lead on multi-layer links since Telesat is already a well established GEO satellite communication company and Hughes is an investor in OneWeb. SES, which operates both MEO and GEO satellites is an investor in the forthcoming Europen Union LEO constellation and the European Space Agency has a long ISLL history and has recently launched project HydRON, which hopes to demonstrate the seamless extension of terrestrial fiber networks with "fiber in the sky" -- a terabit GEO/LEO optical network in space

But, that's the long run. For now, SpaceX is far ahead of the field in nearly every dimension, including ISLL development and deployment and it seems they are willing to subsidise expensive hardware like laser links and end-user terminals while focusing on relatively affluent markets like North America, Europe and Australia in the short run.

Tuesday, January 19, 2021

Low-Earth orbit (LEO) satellite internet service developments for 2020

I posted reviews of important LEO-satellite Internet service developments during 2017, 2018 and 2019. I've updated those posts during the years and have 18 new posts for 2020. In 2020 we saw increased effort from China, OneWeb's bankruptcy and restructuring with new ownership and prospects, Amazon investng in space-related infrastructure, Telesat making steady progress, SpaceX making rapid progress and satellite and debris tracking and collision-avoidsnce service startups. The following are brief summaries of and links to the 2020 posts.

China will be a formidable satellite Internet service competitor (Jan 28)

This post describes three planned Chinese constellations, at least one of which will focus on broadband Internet service. Testing has begun and satellite mamufacturing capacity is being developed. They will serve both domestic and international users as part of China's global Digital Silk Road infrastructure program and are funded by both private and government investment.

LEO Broadband Will Create Millions of Jobs (Feb 13)

SpcaceX is recruiting hard-working, trustworthy people with common sense regardless of their education. They will train new-hires. This was commmon practice in the 1960s, when IBM had a formal two-year training program for new hires and the 1950s when the US government paid IBM to hire and train 3,000 programmers for the SAGE early-warning system.

Geely's LEO constellation for mobile vehicle connectivity (Mar 4)

The Geely Holding Group (GHG), a diversified, private Chinese conglomerate that is best known as an auto manufacturer, began construction of an intelligent satellite production and testing facility.

OneWeb is bankrupt -- who will buy their assets? (Mar 31)

OneWeb filed for bankruptcy and partnership of the British government and Bharti Global limited, an Indian telecommunication conglomerate serving parts of Asia and Africa, bid a billion dollars to acquire OneWeb's assets and restart the company.

SpaceX applies for a constellation re-design and announces beta test dates. (Apr 24)

SpaceX applied for a redesign of their constellation. If approved, the number of satellites would essentially be unchanged, but many would be at lower altitude and some will be moved to polar orbits enabling better coverage of far northern and southren latitudes.

Can SpaceX launch 30,000 second-generation Starlink satellites? Maybe. (Jun 8)

SpaceX applied for permission to launch 30,000 "second-generation" Starlink broadband Internet satellites. This post describes the proposed constellation and speculates on their ability to fund, manufacture and launch so many satellites and the feasibility of dealing with the space debris that the effort would create.

Rural broadband subsidy -- what's the rush? (Jun 13)

The Federal Communications Commission adopted procedures for Phase I of the Rural Digital Opportunity Fund auction to award up to $16 billion in support over 10 years for the deployment of fixed broadband networks. The post describes the program and questions the categorization of satellite-based services as high-latency and the rush to allocate the funds.

Questions on the impact of trees on SpaceX Starlink (Jun 24)

This post raises a number of questions about the impact of trees and other obstructions as well as rain and snow on SpaceX Starlink service.

Amazon Aerospace and Satellite Solutions -- integrating satellites and terrestrial services (Jul 6)

Amazon announced Amazon Web Services Aerospace and Satellite Solutions to market and assist in the design and implementation of complex space/terrestrial systems. SpaceX has a substantial lead in launch and satellite deployment and Amazon has superior terrestrial resources and is building the organization and infrastructure to connect them to space.

OneWeb rises from the ashes -- maybe (Jul 22)

A consortium of the UK Government and Bharti Enterprises bought bankrupt OneWeb, a company that had raised $3.2 billion and had acquired valuable spectrum rights, for $1 billion. While they lag behind SpaceX and will need more capital, they have a number of advantages and I hope they succeed.

Bill Gates has not forgotten Teledesic (Sep 17)

Gates was a founding investor in Teledesic, the first attempt at LEO satellite Internet connectivity, but it failed. Today, he is a major investor in Kymeta, a leading supplier of electronically-steered antennas and Microsoft tested satellite access to their Azure cloud services. Microsoft does not want to miss out on space connectivity and services.

A new Chinese broadband satellite constellation (Oct 2)

China applied for specturm for a major new LEO satellite constellation with 12,992 satellites, roughly half of which will orbit at around 550 km and half at 1,145 km. SpaceX is off to a fast start and will be first to offer connectivity in America and Europe, OneWeb, through Bharti, has an edge in Asia and Africa and the Chinese companies have the same in Digital Silk Road nations.

SpaceX Starlink is on a roll (Oct 23)

SpaceX entered into a partnership with Microsoft to connect to their Azure cloud, giving them an answer to Project Kuiper's integration with Amazon Web Services and infrastructure. They also began offering beta service to a few individuals and organizations in the northern US and solicited applications for a public beta test and saw such strong demand that they requested an increase in the number of authorized US terminals. They have also registered 14 shell companies in 13 foreign nations and are deploying ground stations in north America and Europe.

SpaceX Starlink beta, phase two (Oct 28)

Starlink opened beta testing to the public. Applicants must be between 42 and 53 degrees north lattitude. The inital locations must be in the US and the price is $99 per month for the service $499 for a terminal.

Satellite and space debris tracking as a service (Nov 6)

LeoLabs and Northstar are offering satellite and debris tracking and collision avoidance as a service. LeoLabs is using terrestrial, phased-array radar and Northstar is tracking from satellites. Tracking and collision avoidance is a technical and political problem because it requires collaboration and data sharing among government and private satellite operators from all nations.

Starlink will be priced to be affordable (Nov 14)

SpaceX and others will have to charge less for connecivity in developing nations if their service is to be affordable and fully use the capacity of the constellation. Charging more in affluent markets will increase revenue and tend to reduce the "digital divide" -- good business and good karma.

OneWeb is out of bankruptcy, but is not out of the woods (Nov 25)

OneWeb has emerged from bankruptcy with Bharti and the UK governmenet having 42.2% ownership each. Some of their previous agreements are in place and some inevestors are still participating. They will have to raise more capital and are well behind SpaceX, but have acquired assets that had cost $3.3 billion and have marketing advantages in several areas. We need competition and I hope they succeed.

Telesat update -- proposal for a larger constellation, Canadian and DARPA contracts, a planned IPO and more (Dec 28) Telesat has submitted a plan calling for an increase in the number of satellites they launch to 1,671. While they have not yet launched production satellites, they have run many tests and demonstrations and have research contracts with the US and Canadian governments, Canadian government support, a steady stream of income from their 50-year old geostationary satellite business, ground stations in the north and plans for an IPO to finance the LEO constellation.

Thursday, January 07, 2021

SpaceX Starlink beta and beyond

SpaceX began public beta testing of the Starlink Internet service in the northern US late last October. Since then, they have made many software updates based on the beta experience and have expanded the uninterrupted-coverage area by launching new satellites. By the end of the year, they had begun beta service in southern Canada and sent beta test invitations to a few UK users. The beta-eligibility area is expected to expand from the current 45-53 degree latitude this month or next.

SpaceX is actively seeking permission to operate in other nations. The legal ins-and-outs are confusing but it has foreign affiliates in at least 5 European countries and one of those, Starlink Holdings Netherlands B.V., has subsidiaries in 4-6 other European nations, including Germany and Greece, and in Argentina. SpaceX also has foreign affiliates in Australia, Canada, Chile, Colombia, Japan, Mexico, New Zealand, and South Africa and is in discussion with the Philippine government.

SpaceX will have to establish relationships with every nation they plan to operate in and these affiliate companies are an important asset. They also have contacts through their launch business, for example in Argentina, where they launched the SAOCOM satellites. This is obviously a fast-changing situation and you can watch the list grow and find more information by following this FAQ wiki and the Starlink discussion on Reddit.

The cost of the beta service in relatively affluent nations seems to be roughly the same. In the US, beta testers are paying $99 per month for the service and $499 for a terminal, including a tripod and WiFi router. In Canada, it's $649 CAD and $129 CAD per month and £439 and £89 per month for service in the UK. There are no data caps for now, but that might change if demand outstrips the evolving capacity. Elon Musk claims that users can easily install the terminal themselves -- just point it at the sky and plug it in -- and, while that may be true for users with a clear view of the sky, others will have the added expense of creating custom mounts to avoid trees and other obstacles.

What about the prices in less affluent nations like the Philippines, South Africa, Chile, Columbia, and Argentina?

The percent of the rural population that can afford the current beta prices is lower in those nations than in North America and Europe and the gap is even wider in many other nations. SpaceX will either charge less in poor nations in order to fully utilize capacity or focus on organizations like schools and clinics rather than individual consumers.

In addition to licenses, SpaceX will need ground stations with fiber connectivity to the regions they serve. The map shown here shows ground stations in North America and Australia, but it is somewhat out of date. They are also working on ground stations in France and New Zealand and, as with licenses, Reddit is a good place to follow current developments.

SpaceX has a clear lead over other would-be low-Earth orbit Internet service, providers. They have 874 working satellites in orbit, beta-testers in four nations, affiliates in others, and superior launch technology, but this is just the start of the game. Satellite broadband is a dynamic, multi-dimensional market; technology is changing rapidly and SpaceX has formidable competition. The situation reminds me of "IBM and the seven dwarfs" in the 1960s.

Monday, December 28, 2020

Telesat update -- proposal for a larger constellation, Canadian and DARPA contracts, a planned IPO and more

Telesat has a number of unique advantages and, if LEO broadband truly is a half a trillion-dollar addressable market, there will be room for multiple providers.

Blue satellites are in polar orbits and
red satellites are in inclined orbits.
Click here for animation.

I've discussed Telesat's LEO broadband project in earlier posts, but the project has progressed, so an update is needed.

The original plan was to launch 117 satellites but that has changed. The phase 1 constellation will now have 298 satellites and the second phase will add 1,373 for a total of 1,671. The revised plan has been submitted to the FCC, and they expect it to be approved next year.

While Telesat applied to increase the number of satellites, the macro architecture remains the same as originally planned. There will be two sub-constellations, one with 351 satellites in polar orbits (98.98 degrees/1,015 km) and another with 1,320 in inclined orbits (50.88 degrees/1,325 km). This patented architecture will enable them to serve the entire globe. (I am not a lawyer, but I wonder whether that is something that can be patented).

The sub-constellation architecture will enable global coverage and low latency but will require sophisticated inter-satellite laser links (ISLLs). It turns out that DARPA is also developing Blackjack, a military LEO communication constellation, and since the military requires low-latency and the ability to quickly establish connectivity at arbitrary, perhaps remote locations, they require ISLLs. Telesat received a $2.8 million study contract for the design of the Blackjack bus in 2018 and was awarded $18.3 million to develop and test Blackjack last October. In that role, Telesat selected Mynaric to supply ISLLs and may use them in their satellites as well.

The Canadian government has granted Telesat C$85 million to support research and development and another C$600 million to subsidize Internet connectivity in rural Canada. The R&D funds will go to early satellite tests and will support approximately 500 professional jobs and the rural connectivity funds are like those in the US where SpaceX was awarded $885 million.

While Telesat will have global coverage, they will focus on Canada and the north at first and that will put them in competition with OneWeb which plans to do the same. OneWeb will have a head start since it already has a distribution partner and plans to begin service in the north next fall, but Telesat will need fewer ground stations because of it's ISLLs and it already has 10 GEO teleports in North America and two others in Hawaii and Austria.

Telesat has run tests and done demonstrations of many potential applications since launching a test satellite in 2018 and Lynette Simmons, Director of Marketing and Communication, says the system design is complete and they expect to announce the prime contractor very soon. They will finance the constellation by restructuring and a public stock offering. President and CEO Dan Goldberg is confident that they will be able to raise sufficient capital based on their track record. The company is over 50 years old and is a large, global GEO satellite operator that has been broadcasting televiion since 1978, providing Internet connectivity since 1996 and they have been doing advanced research for both the US and Canadian governments. Goldberg thinks LEO broadband is a half a trillion-dollar market and you can see his pitch in the following video.



Let me add a little speculation. Nearly two years ago, Telesat signed an agreement to use the software defined network (SDN) platform Google had developed for Project Loon, which provides connectivity using baloons in the stratosphere. If Telesat's system design includes Google's SDN, Telesat LEO satellites may be able to interoperate with Google's baloons. Going a step further, they may one day interoperate with Telesat's GEO satellites, creating an integrated three-layer network routing packets between as well as within layers depending upon the service level required by a customer or application. An integrated network could also provide fallback in the case of equipment failure.

A reader recently commented on my Twitter feed that Telesat was "moot," because SpaceX has superior launch capability and a head start, and OneWeb, which, like Telesat, is forsaking the consumer market for commercial applications like 5G backhaul, is a direct competitor. He was wrong. Telesat has a number of unique advantages and, if LEO broadband turns out to be anywhere near the half-trillion-dollar addressable market Goldberg expects, there will be room for multiple providers.

Updates 12/28/2020

A reader pointed out that Telesate has also committed to investing the revenue from their sale of C-band spectrum in the LEO constellation. That spectrum will be used for 5G mobile connectivity and will enlarge the prospective mobile-backhaul market.

Speading at a webinar on "Building NewSpace," Michel Forest, Telsat Director of LEO Systems Engineering says there is significant demand for LEO among their current GEO customers who want low latency and more capacity in specific places like airline hubs and ports. (33:37)

For a threaded discussion of this post on Reddit, click here.

Update 2/23/2021

Telesat received $344 million for their share of the C-band auction and C$400 million from Quebec (C$200 grant and C$200 loan) for economic development.

Wednesday, November 25, 2020

OneWeb is out of bankruptcy, but not out of the woods.

OneWeb, which declared bankruptcy in May, has reorganized and emerged from bankruptcy. Bharti Global, an Indian telecommunication conglomerate, and the British government each own 42.2% of the new company, and most of the rest is owned by previous investors SoftBank and Hughes Network Systems.

Hughes will continue work on ground infrastructure and marketing and the original joint venture with Airbus, which designs and manufactures OneWeb satellites, was re-activated and the production lines brought back into service.

The company has new top management. Neil Masterson, who was COO at Thomson Reuters, will be the new CEO at OneWeb and Sunil Bharti Mittal, Founder and Chairman of Bharti, will be the Executive Chairman. The previous CEO, Adrian Steckel, has been appointed Adviser to the Board. Notably, OneWeb founder and previous Executive Chairman Greg Wyler was not mentioned so may not be involved -- perhaps that is related to the shift from the end-user market to government, enterprise, maritime, aviation and other markets that may be less price-sensitive and not require low-cost terminals. (The first million terminals may be costing SpaceX as much as $2,400 each).

OneWeb has permission from the FCC to operate 2,000 satellites -- 720 in low-Earth orbit (LEO) at 1,200 km and 1,280 in medium-Earth orbits at 8,500 km and a 45° inclination. They currently have 74 LEO satellites in near-polar orbit and recently shipped 36 to Russia's Vostochny Cosmodrome for a December 17th launch on a Soyuz rocket. (While they have permission to launch 720 LEO satellites, they seem to be only planning to launch 648).

OneWeb's first priority is building out its first-generation broadband network and providing coverage down to about 50 degrees latitude next year and to complete the full constellation the following year. The plan is to begin commercial services starting at the end of 2021 to the UK, Alaska, Canada, Northern Europe, Greenland, Iceland, and the Arctic Seas.

The company is seeking landing rights in India and Mittal said they plan to begin testing Internet service there in 6-8 months. (Those will be test satellites with intermittent connectivity). The plan is to offer service in India in May/June 2022.

OneWeb is starting over with new partners, assets that had cost the previous company $3.3 billion, and priority spectrum rights, but they are not yet out of the woods.

For a start, they've booked sixteen launches with Arianespace but will need about $2-2.5 billion to complete the constellation.

They have also lost time. They had initially hoped to begin Alaskan service in 2019 and serve the entire state by the end of 2020, and are now far behind that schedule. In the meantime, Telesat, their stiffest competitor for Alaska and the polar region, has made steady progress.

Whiile Bharti's participation gives OneWeb an advantage in terms of distribution and business and government relationships in developing nations in Asia and Africa, they will face stiff Chinese competition in the "Digital Silk Road" nations.

They are also under time pressure to manufacture and launch satellites in order to retain their ITU spectrum rights -- 360 satellites by June 2023 and 720 by June 226. While OneWeb has maintained it's manufacturing joint venture with Airbus, the BBC reports that "components exist for a further three batches of satellites, and the new owners have been busy in recent weeks re-establishing old supply chains to fully ramp up production to pre-bankruptcy levels."

Other than Hughes and Airbus, I don't know which of their prior contracts, MOUs, and relationships are still in force. For example, they had agreements for distribution and cooperation in Alaska, Hawaii, Russia, Armenia, Georgia, Kazakhstan, and surely others I am unaware of.

Finally, there has been discussion of the possibility of OneWeb generating revenue by modifying their satellites to double as a high-precision global navigation satellite system (GNSS) that is difficult to jam or spoof. Mittal told BBC News: "For Generation 2, we will of course have full-scale precise, navigation and timing. And if the UK government wants some other payloads critical to the needs of security, we will do whatever is required." By the time they are ready to launch the next-generation satellites, they may face competition from Xona Space Systems's forthcoming 300-satellite GNSS as well as the possibility of similar offerings by SpaceX.

I hope OneWeb survives and thrives -- billions of people live in unserved areas and competition is good for all.

Saturday, November 14, 2020

Starlink will be priced to be affordable

Charging more in affluent markets will increase revenue and tend to reduce the "digital divide" -- good business and good karma.

SpaceX is now serving customers (aka beta testers) in the northern United States. They will soon be doing so in Southern Canada and recently announced that Germany, where they have applied for permission and have begun construction on two ground stations, will probably be next. Early customers in the US are paying $499 for their user terminals and $99 per month for Internet service.

But what about the eventual price in Canada, Germany or, say, a poorer nation like Cuba? When discussing the plan for Germany, SpaceX vice president Hans Königsmann said the price was not yet determined and "we will focus on what the local market allows." At first that sounds like something an arrogant monopolist might say, but on second thought it is both good business and good karma.

In Econ 101, pricing is simple. In a competive market, the price or a product or service will be at the point at which the curves for supply and demand as a function of price intersect. A monopolist will set the price at the point where marginal cost = marginal revenue. Things get trickier in a classic oligopoly and even trickier in a dynamic market like satellite Internet service.

The capacity of a satellite constellation increases as technology improves and as new satellites are launched. Today, SpaceX has only around 800 satellites in service which limits both their coverage area and the number of customers they can serve in a covered area, but they plan to add around 120 satellites per month, have permission for around 12,000 and have requested permission for 30,000 more. Furthermore, the technology deployed in the 12,000th satellite will be more sophisticated and have higher capacity than that in today's satellites and most of those 12.000 satellites will have inter-satellite laser links which will further increase coverage and capacity and reduce the need for terrestrial infrastructure.

The fixed cost of a satellite Internet constellation is high -- satellites are expensive to make and to launch -- but the cost of adding and servicing a new customer is relatively low and the market is global. SpaceX satellites that fly over the southern US will also fly over Cuba, but at $500 for a user terminal and $99 per month Raúl Castro may be the only Cuban customer. Perhaps Cuba could justify shared links at clinics or schools, but the individual market would be essentially zero and excess capacity on a satellite while it is flying over Cuba wourld be wasted. The price in Cuba should be lower than that in the US in order to fully utilize available capacity.

Prices may or may not remain a flat fee per month, other factors like the political situation and vested interests of terrestrial Internet service providers will affect pricing decsions, and end-users will not be the only customers in a nation, but in general, SpaceX and the other constellation operators will charge more in affluent markets than in poorer markets -- they will try to operate at full capacity everywhere. Charging more in affluent markets will increase revenue and tend to reduce the "digital divide" -- good business and good karma.

Update 2/9/2021

SpaceX has invited the general public to sign up for the Starlink service, stating that "Starlink is available to a limited number of users per coverage area at this time. Orders will be fulfilled on a first-come, first-served basis." As with Tesla cars, you can reserve a place on the waiting list with a refundable deposit.

I had predicted that they would charge less in poorer nations and, for now at least, Elon has decided to ignore my suggestion for now, tweeting that "It’s meant to be the same price in all countries. Only difference should be taxes & shipping." (The price of the terminal is $499 in the US and €499 in Germany and the service is service is $99 and €99).

We may see lower prices in developing nations when the capacity of the constellation is greater, but for now they will be serving relatively affluent end users and groups that share a connection. It will be interesting to see the prices when they begin serving India, which Elon Musk hopes will be in the middle of this year.

Friday, November 06, 2020

Satellite and space debris tracking as a service

All spacefaring nations must work together on common issues, such as tracking the thousands of pieces of space debris that could stifle the commercialization of space.
Commerce Secretary Wilbur Ross

On February 2, 1989, the Soviet Union launched its Cosmos 2004 satellite and the Chinese launched a rocket on December 15, 2009. Cosmos 2004 is now defunct as is the third stage of that Chinese rocket, but both remain in orbit. They were long forgotten until recently when LeoLabs, a satellite tracking service, predicted that they had a good chance of colliding at 971 km over the sea near Antarctica.

It turns out that they did not collide but they came within 11 meters of each other. The two objects have a combined mass of 2,800 kg and were traveling at a relative velocity of 52,900 km/h. Imagine what would have happened had those massive objects collided at that speed. Since they are in a vacuum, the collision would have been silent, but large and small fragments would have been scattered into their own orbits, exponentially increasing the likelihood of future collisions.

The Chinese rocket scientists were not thinking about the possibility of a collision with Cosmos 2004 when they launched their rocket in 2009, but today, with SpaceX and others planning to launch thousands of broadband-service satellites into relatively crowded low-Earth orbit, the debris problem is obvious and daunting, but there are some promising developments. (For more on the extent of space debris click here and here).

Governments have been tracking the orbits of satellites and debris larger than 10 cm for some time but a new company, LeoLabs, is using phased-array radar antennas to track objects as small as 2 cm. In a recent interview, LeoLabs CEO and Co-Founder Daniel Ceperley, said their phased-array radar antennas are capable of tracking the approximately 250,000 orbiting objects that are greater than 2 cm within a 100-meter margin of error.  

LeoLabs antennas can switch direction in one millisecond, but since it is difficult to locate and establish control over satellites with only one or a few observations in the first hours and days after deployment, they offer a Launch and Early Orbit service in which they focus more time on the satellites and SpaceX is using that service.

While the first hours and days after deployment are critical, the risk of a collision persists as long as a satellite is in orbit so LeoLabs also offers a Collision-Avoidance service that will report possible collisions a week in advance and follow up with increasingly more frequent and more accurate notices during the week. This will give satellite operators time to test alternative collision-avoidance maneuvers using LeoLab's interactive maneuver-simulation service.

The Collision-Avoidance service works if a satellite operator is trying to avert a collision with debris or a defunct satellite, but if two active satellites are involved, both parties must be informed and able to communicate about planned maneuvers. SpaceX says Starlink satellites will be able to maneuver autonomously to avoid collisions, but what happens if the approaching satellite also maneuvers in the same direction?

Up to this point, I've been talking about terrestrial tracking of satellites and debris, but tracking can also be done from space. A while ago, I suggested that SpaceX might equip their satellites to detect debris while in orbit and they have some autonomous collision avoidance capability, but as far as I know, they have no plans for offering collision avoidance data or service to others.

Northstar, a space-based Canadian startup, plans to track satellites from orbit. They have contracted for three satellites that will be in polar orbits at an altitude of 575 kilometers and plan to launch at least three more batches of three each in different orbits by 2024.

Like LeoLabs, Northstar plans to offer tracking as a service. While Northstar is several years behind LeoLabs, it will use different technology. If successful, Northstar plans to track satellites from low-Earth to geostationary orbits. They will be able to use optical scanners since there are no problems with the atmosphere and weather in space and will have a wide view, enabling them to revisit objects frequently and quickly and accurately predict orbits.

The investment and operating costs may also be different than those of LeoLabs, but I don't know whether it will have cost more to build and operate the 12 LEO satellites Northstar plans to orbit in 2024 or the six radar tracking stations LeoLabs will have in operation next year.

(NorthStar and ExoAnalytic, which tracks satellites and debris with terrestrial optical telescopes, announced a partnership in April 2019, evidently intending to combine their observations, but there is no further mention of that on their Web sites and Northstar has changed it's business model which initially called for dual-use satellites combining both Earth observation and satellite tracing.)

As shown below, many nations now launch, own, and/or operate satellites. (The map is as of 2016 but the database at the site included 68 nations as of August 1, 2020). Whether the tracking is done from the ground or space, it is clear that global data must be shared and collision-avoidance protocols invented, standardized, and perhaps automated. (Holger Krag, director of the European Space Agency (ESA) Space Safety Programme Office hopes to like to demonstrate automated maneuver coordination by 2023).

Achieving global space law and regulation like we have for the seas seems like an impossible technical and political challenge -- exacerbated by the fact that many satellites and tracking services, like the recently completed US "Space Fence," are operated by military and security organizations -- but it must be done. There has already been a close miss between a Starlink satellite and Aeolus, an ESA satellite, in which a software bug led to a communication breakdown between the ESA and SpaceX.

I am amazed to find myself agreeing with and quoting a member of Trump's cabinet, Commerce Secretary Wilbur Ross, who said "all spacefaring nations must work together on common issues, such as tracking the thousands of pieces of space debris that could stifle the commercialization of space."

Wednesday, October 28, 2020

SpaceX Starlink beta, phase two

According to an email, Starlink has moved into the second phase of it's beta program, nicknamed the “better than nothing beta,” which feels a bit like monopoly hubris to me. It may be better than nothing, but it is not as good as the initial beta which was free. Participants will pay $99 per month for the service and pay $499 for a terminal, including a tripod and WiFi router. I wonder what the difference is between these "beta testers" and "customers."

SpaceX warns that data speeds will vary from 50 to 150 Mb/s and latency from 20 to 40 ms and service may be intermittent at times, but performance will improve as more satellites are launched. I'm not sure of the service area, but I had applied to be informed when service would be available at a home at around 34.4 degrees north and I was not invited.

They have also created apps to guide users throught the process of plugging the terminal in and pointing it to the sky. As you see here, one must avoid trees or other obstructions which can be problematical in mountainous or forested areas. One downside to Starlink and other low-earth orbit constellations may be that they will discourage the deployment of fiber in wooded and mountain areas.

Finally, here is a link to the terms of service. In particular, pay attention to the Governing Law section. It foreshadows Starlink connectivity to a constellation of satellites orbiting the moon (and why not the International Space Station?) as well as establishing Mars as a free planet "that no Earth-based government has authority or sovereignty over." I don't know that Elon Musk has the authority to make such a "law," but it foreshadows issues that will have to be dealt with in the future

Friday, October 23, 2020

SpaceX Starlink is on a roll

This is an impressive list of achievements, but bear in mind that we are still in the early days of a yet-unproven technology and market in a complex geopolitical environment.

Why Elon is smiling
The last two months have seen a flurry of Starlink activity, including the following:

Bill Gates has a history of interest in satellite Internet and in September, Microsoft announced their Azure Obrital ground station service, which enables satellite access to its Azure cloud services. SES, Viasat, and Intelsat were announced as initial partners and SpaceX just signed up. Starlink+Azure Orbital will compete with Amazon's satellite constellation and its ground-station service. (For more on Azure Orbital, check out this podcast interview and transcript of product manager Nora Zhan).

SpaceX did some good and got good publicity by providing seven user terminals to the Washington State Emergency Management Division for deployment in at least one region hit hard by summer wildfires. Richard Hall, the emergency telecommunications leader of the Washington State Military Department’s IT division said he had “never set up any tactical satellite equipment that has been as quick to set up, and anywhere near as reliable” as Starlink.

This month, SpaceX provided connectivity to the Hoh Indian tribe west of Seattle. I don't know how many terminals were provided or the speed and latency of the service, but the response and publicity have been positive.

SpaceX has been running beta tests in the US at latitudes between 44 and 52 degrees north. SpaceX reported that it has observed a median latency of approximately 30 ms and a 95th percentile latency of 42 ms in over a million observations.

The FCC will award up to $16 billion over ten years to support fixed broadband service in unserved rural areas. They were initially skeptical of satellite service providers, saying they had not proved that they could meet the requirement for the low-latency, under100 ms bidding tier, but this month, after considering beta test results, the FCC invited SpaceX to bid in the rural broadband funding auction.

After receiving over 700,000 expressions of interest from all 50 states, SpaceX requested an increase in the number of authorized user terminals from one million to five million. They also announced that they are able to manufacture 120 satellites per month, keeping up with their target launch rate.

The capital cities of 17 relatively affluent European nations fall between 44 and 52 degrees north and SpaceX has applied for 3 internet gateway ground stations in France and is said to be looking for roof space on European datacenter roofs.

While the current beta test is in the US, a number of European capitals are between 44 and 52 degrees north and SpaceX is able to serve them as well as the northern US.

SpaceX has begun the process of being able to offer service in Canada, but the final approval will not be considered for around 130 days.

SpaceX has registered 14 shell companies in 13 foreign nations (click here and enter entity number 10143028). I checked the street address of one and it seems to be a postal box rather than an office, but I have been assured that establishing shell companies is common practice. Eight of them are named "TIBRO" (orbit spelled backward) so I assume they are at an earlier stage of development than the others.

SpaceX successfully tested a laser link between two satellites, but, as far as I know, did not reveal details like transmission rate or time to establish a connection. I assume that the links were between two satellites in the same plane. (They initially planned five lasers per satellite and are now committed to having four -- forward and backward in the same plane and two others linking to adjacent planes).

In an interview at the Mars Society Convention, Elon Musk spelled out a timetable for an unmanned Mars landing that included high volume Starship flights, each capable of launching up to 400 Starlink satellites, in 2022.

Perhaps as a result of the above, Morgan Stanley just raised its valuation of SpaceX from $52 billion in July to over $100 billion, and speculated that it might be as high as $200 billion.

The above is an impressive list of achievements, but bear in mind that we are still in the early days of a yet-unproven technology and market in a complex geopolitical environment. Furthermore, we lack the sort of regulation and harmonization that has evolved over the years to govern the seas, and global problems like space debris and collision avoidance remain unsolved.

Update 10/28/2020

SpaceX has opened a second beta test phase. Users will have to pay for both the service and their terminal and the speed, latency and even connectivity will vary at times, but will all improve as more satellites are launched and put in service. They also have created iPhone and Android apps to guide users through the installation process -- avoiding trees and other obstructions. The terms of service are forward looking implying a constellation around the moon and raising the question of Marian sovereignty.

Saturday, October 17, 2020

Elon Musk interview -- management philosophy, rocket design, and a tentative timeline for an un-crewed Mars mission

Musk predicts high-volume, re-usable Starhip flights in 2022 -- each capable of launching 400 up to Starlink satellties.

Elon Musk was interviewed during the virtual convention of the Mars Society. The interview covered SpaceX technology and management and space travel. I'll summarize some of the former here and recommend taking the time to watch the full 55-minute interview.
Here are some of the key points Musk made:
Clear, ambitious objectives drive rapid innovation and his goal it to create a self-sustaining settlement on Mars as soon as possible.

Achieving that goal requires getting a lot of tonnage to Mars, so expendable rockets are a joke, a waste of time. Fairings too.

Scale matters -- large rockets are efficient. Avionics for a large rocket are no larger than for a small rocket and you gain gauge advantages with size -- you can afford thicker, more accurate castings and skins on a large rocket. (The same goes for trucks and ships).

Their current Falcon 9 is close to a local maximum for a kerosene-burning rocket which is limited to a 12-foot diameter because of road transport constraints and its length is constrained by the skin thickness required to avoid bending.

Methane is a better fuel than kerosene -- a rocket goes further if it shoots gas out the end faster and a bigger percentage of its mass is propellant. Furthermore, oxygen is cheap and you can go to a higher oxygen/propellant ratio with methane and you can make both oxygen and methane on Mars.

He gave some timetable guesses with the caveat that they assume exponential innovation:

  • 80-90% confident of reaching orbit with Starship next year.
  • 50-60% confident of ship and booster reuse next year.
  • High volume flights in 2022 -- each capable of launching up to 400 Starlink satellites.
  • Refuel in orbit in 2022.
  • Two or three years for a moon ship -- after refueling in orbit.
  • An un-crewed Mars mission in maybe four years (at the time of the second Mars transfer window from now).
(Note that they might not choose to launch 400 satellites at a time since a loss of 400 satellites or 28 booster rocket engines would be very costly and mixed-purpose launches are also possible).

The above assume a non-linear rate of innovation. When asked what makes SpaceX so innovative, Musk first said "I don't really know," but went on to credit having ambitious sub-goals like:

  • Full and rapid reuse.
  • Orbital refueling.
  • Propellent production on Mars.
He said SpaceX will not have competitors unless someone else is shooting for Mars.

His goal also requires a million people who want to go to Mars and can afford or find funding to do so -- you need the will and the way. He is working on the way.

When asked about SpaceX hiring criteria he said he looks for "evidence of exceptional ability" regardless of certification and worries that if Nikola Tesla applied to work at Tesla they might not even give him an interview.

I really enjoyed the interview. I like Musk's humor and relaxed, off-the-cuff speaking style and admire the breadth of his knowledge, his focus on the very big picture, and his management style. He gets results.

If you like this interview, here are a few of my favorites Musk talks.

Friday, October 02, 2020

A new Chinese broadband satellite constellation

Can we afford the wasted capacity and idle investment of SpaceX satellites remaining dormant while flying above China and GW satellites remaining dormant while flying above the US?

In an earlier post, I described three Chinese low-Earth orbit (LEO) satellite constellations that seemed to be oriented toward broadband communication. 

  • Hongyun, which plans 864 satellites and will emphasize service in China's remote regions. 
  • Hongyan, which plans around 320 satellites, seems to be looking at applications like maritime, aviation, and mobile backhaul service. 
  • Galaxy Space seems to be focused on 5G backhaul and Internet of things applications. 

None of those companies seem to be pursuing the global consumer market that SpaceX and OneWeb hope to serve, but a new Chinese company code-named GW, which I have been told stands Guó wang (国网) or National grid), seems to plan on doing so. 

GW has filed a spectrum application with the International Telecommunication Union for two constellations with the cryptic names GW-A59 and GW-2. They requested permission to use the following frequencies:

  • 37.5-39.5 GHz (space-to-Earth)
  • 39.5-42.5 GHz (space-to-Earth) 
  • 47.2-50.2 GHz (Earth-to-space) 
  • 50.4-51.4 GHz (Earth-to-space) 
for communication with 12,992 satellites:


The size of the constellations implies an intention to compete in the end-user broadband service market. Where might they fit in that market segment?

In a recent podcast, consultant Blaine Curcio pointed out that a long history of government infrastructure investment has left China with a strong terrestrial network. Hongyan might be able to serve much of the remaining domestic market, but with 12,992 satellites in orbits ranging from 30 to 85 degrees inclination, GW seems to be interested in the global market where they would compete with SpaceX and OneWeb. (Telesat will also compete in these markets but is focusing on mobile backhaul and hotspots for education, telemedicine, and community access).

SpaceX, which is off to the fastest end-user start, is focusing initially on the lucrative markets of North America, followed perhaps by Europe. OneWeb would seem to have an advantage in the Asian and African nations where part-owner Bharti has a presence as well as the United Kingdom due to the government's stake in the company. GW would be in a strong position in the nations where China already has "Digital Silk Road" (DSR) projects, as shown below.

DSR IT infrastructure projects as of 12/2018 (source)

The DSR is part of China's ambitions Belt and Road initiative with infrastructure projects in around 70 nations. In late 2016 they added space infrastructure -- the Belt & Road spatial Information Corridor. While they are currently concentrated in Eastern Europe, Asia, the Middle East and Africa, I've speculated that the DSR may extend to Latin America.

Over half the people in the world live in or near China and India. Many of those have no connectivity and some are paying very high rates for geosynchronous satellite service. If the LEO satellite business works out, there is room for GW, OneWeb, SpaceX, Telesat, and others. 

I have painted a speculative picture of a politically bifurcated LEO Internet with GW serving one set of nations and SpaceX and OneWeb others, but I am certainly not endorsing that future. Satellite constellations are by definition global and we are facing massive global challenges today -- can we afford the wasted capacity and idle investment of SpaceX satellites remaining dormant while flying above China and GW satellites remaining dormant while flying above the US?

Tuesday, September 29, 2020

What became of the ARCOS undersea cable connection to Cuba?

Will Trump kill the proposal before the election?


Proposed 56km link between the
ARCOS undersea Cable and Cuba
Cuba's primary connection to the global Internet is through the ALBA-1 undersea cable linking landing points on the south-east shore of the island to Venezuela and Jamaica; however, the bulk of Cuban traffic originates in Havana which is on the north-west coast. Traffic from Havana and other cities in the west travels over a backbone to reach the cable landing points. A landing point near Havana would reduce the load on the backbone, speeding connections, providing redundancy, and saving capital investment.

At one time, there seemed to be bipartisan support in the US for improving Cuban Internet access. During his second term, President Obama pursued detente with Cuba and much of that effort was focused on the role of the Internet and undersea cable connectivity was part of the plan. Daniel Sepulveda, Deputy Assistant Secretary of State and U.S. Coordinator for International Communications and Information Policy, who led two US government delegations to Cuba during the Obama administration, said there were at least a half-dozen proposals — from US and non-US companies — to construct a north-south undersea cable between the US and Cuba. There had even been discussion of one day allowing Cuban access to the US cable at Guantanamo, GTMO-1.

At first, Trump seemed to agree -- consider the following timeline:

  • October 20, 2017, The State Department issued National Security Presidential Memorandum, NSPM-5, stating that it was our policy to "Amplify efforts to support the Cuban people through the expansion of internet services" and directing government departments and agencies "to examine the technological challenges and opportunities for expanding internet access in Cuba."
  • January 22, 2018, The State Department established a Cuba Internet Task Force "to examine technological challenges and opportunities for expanding internet access in Cuba." (Disclosure -- The Task Force formed two sub-committees and I was a member of both).
  • July 23, 2018, The consortium that owns the ARCOS cable applied to construct a branch from the cable to an ETECSA supplied cable landing spot in Cojimar, Cuba.
  • August 10, 2018, The FCC found the application "to be acceptable for filing and subject to the streamlined processing procedures" obligating them to take action "within forty-five (45) days" unless upon "further examination" the application is "deemed ineligible for streamlined processing."
Well, it seems the application must have been deemed ineligible since as far as I know nothing happened until earlier this month when The Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector (CAFPUSTSS), which Trump established in an executive order on April 4, 2020, notified the FCC that it is planning to conduct 120-day security reviews of the ARCOS application.
I reached out to the FCC and the attorney who filed the request for the cable branch to ask why the application had not been acted upon but got no reply. I can think of two possible explanations:
  • Trump changed his policy with respect to Cuban Internet connectivity without, as far as I know, telling anyone.
  • Trump held this application up in order to grab a Florida headline between now and the election when the CAFPUSTSS rejects the application showing how tough he is on Cuba in an effort to win Cuban and Venezuelan votes.
I'm unfamiliar with FCC procedures and workflow -- is there another explanation?
Finally, note that on March 15, 2018, Deep Blue Cable Inc. applied for a Caribbean cable with 19 landing points. While none of those were in Cuba, they planned a second phase with two Cuban landing points, but the Deep Blue application was withdrawn on November 11, 2019.
Update Nov 30, 2020:

Denise Coca, FCC Division Chief, informed me that the ARCOS-1 application had been withdrawn on October 20, 2020, about two weeks before the election. When asked why the FCC had taken so long to process the application, she did not answer.

I wonder whether this might be re-submitted to the Biden FCC. Since the administration sought Cuban rapprochement during his time as Vice President, I imagine Biden would favor the link. One can argue that doing so would be a net political win among Florida voters. Would Cuban president Díaz-Canel approve it? It would reduce traffic on the Cuban backbone and improve international connectivity, but might be construed as a security threat and neutralize one of his complaints against the US.

Thursday, September 17, 2020

Bill Gates has not forgotten Teledesic

Might we see another broadband LEO constellation?


Proposed Teledesic constellation:
12 planes of 24 LEO satellites
(source)
Teledesic was the first company to plan to offer broadband connectivity using a constellation of low-earth-orbit (LEO) satellites. Craig McCaw, who had sold McCaw Cellular to AT&T, founded Teledesic in 1990 and it got a big visibility and credibility boost when Bill Gates made a small ($5 million) investment in the company. 

McCaw and Gates were able to attract capital -- $200 million from a Saudi Prince, $750 million from Motorola, and $100 million from Boeing, which signed on as the prime contractor. When Boeing and Teledesic finished the final design, the constellation had been reduced from the originally planned 840 to 288 satellites. (Later, Motorola replaced Boeing as prime contractor). The FCC approved Teledesic's Ka-band spectrum application in March 1997 and 37 counties submitted supporting proposals for the December 1997 World Radiocommunication Conference. Teledesic hoped to provide "fiber-like" connectivity to an "Internet in the sky," but was unable to deliver and gave up in 2002

I don't know what motivated Gates' investment in Teledesic, but today the Gates Foundation is devoted to fighting poverty and providing health care and education in developing nations. Nearly 20 years after the demise of Teledesic, satellite, launch, and communication technology are vastly improved, the entire world is aware of the Internet, we have applications that can utilize "fiber-like" speed and latency and Gates is clearly aware of the value (and downside) of connecting the unconnected.

Bill Gates might be thinking that it is time for another try.

Last September, Microsoft announced that customers of Viasat, Intelsat, and SES would be able to access Azure cloud services. Their focus is on government, enterprise, maritime, and airline applications and the announcement states that "each of the partners brings different strengths, for example, choices between Geostationary (GEO), Medium Earth Orbit (MEO) and, in the future, Low Earth Orbit(LEO) satellites" so it seems they are talking with possible LEO partners. (Maybe not with Amazon given its recent challenge to Microsoft's JEDI defense contract).

Earlier this month, the FCC authorized Microsoft to establish a proof-of-concept connection between two ground stations in Washington and DEIMOS-2, a Spanish imaging satellite. If successful, the test will demonstrate satellite connectivity to Microsoft's Azure cloud services as well as the rest of the Internet. They plan to run the demonstrations before, during, and after the Ignite conference, which starts on Sept. 22, and if the demonstration results in significant market interest, they will apply for regular ground-station authority which would put them in direct competition with Amazon's ground-station service. (Microsoft may have a fear of missing out on space).

Terminals with electronically steerable antennas are a critical LEO broadband component. High-end fixed and mobile users will be able to justify relatively expensive terminals, but success in the consumer market will require user-installed, reliable, low-cost terminals. It turns out that Bill Gates was the lead investor in electronically-steerable antenna manufacturer Kymeta at the time of its launch in 2012 and he is now leading a new $85 million investment round in support of a new high-end mobile service using Kymeta's new LEO-ready U8 terminal. The expensive U8 is sold for high-end fixed and mobile applications today, but they will surely be able to produce a low-cost fixed-service terminal in the future.

If the LEO broadband business case turns out to be viable, these are early days and there is room for competitors. The Gates Foundation endowment is nearly $50 billion, Bill Gate's net worth is $115 billion and Microsoft is on a roll. Might we see another broadband LEO constellation?