THOUGHT LEADERSHIP
3GPP Standards for Satellite IoT – the catalyst for progression, or a Mexican standoff? With low earth orbit satellites fast becoming the norm, and 3GPP Standards issuing in an ‘open source’ market, Alastair Macleod, CEO of remote connectivity provider, Ground Control asks if the Satellite IoT sector is looking at a bright horizon?
We are at a crossroads, it would seem. Much has happened in the satellite space these past 10 years or so, and all of it brings opportunity to satellite network operators (SNOs), mobile network operators (MNOs), consumers, and of course those who rely upon connectivity in extreme and remote areas across the globe. Using satellite connectivity for IoT applications has, traditionally, come with a hefty price tag. Inevitably, the cost to build, launch and maintain a satellite network has to be recouped. In 1995, launching a satellite would have cost $26,884/Kg. That cost has come down more recently, largely because companies like SpaceX have made it possible to reuse launch components but the trend for launching Low Earth Orbit satellites has also played a large part. By 2020, the cost to launch a satellite network had reduced to $951/Kg, a fraction of that in 1995. Today, we are in an era where SNOs have less outlay to recoup, given the lower capex, bringing satellite IoT connectivity costs down. This has made launching a satellite constellation an attractive proposition but it remains a costly pursuit. The NewSpace Index lists more than 70 companies set up to launch satellites to serve the IoT/M2M industry. Of these, more than half have been cancelled before launching, or after prototypes were launched. Only three are complete: Iridium and Orbcomm, both of which are well-established ‘legacy’ players in the satellite industry, and Swarm, which has since been absorbed into Starlink, and is no longer being developed.
It’s important when we talk about the future of satellite IoT connectivity to bear in mind that very few SNOs aiming for the IoT/M2M market have been able to maintain the momentum needed to bring their vision to life. For all the recent improvements, it is still expensive to build, launch and maintain a satellite network, and most companies need to be able to demonstrate that they will deliver a return on investment within as short a timeframe as possible. Companies promising extremely low costs will in turn need to grow their subscriber base rapidly if they are to deliver shareholder value. This proved easy for Starlink as it disrupted the satellite broadband industry, but it will be more challenging for satellite IoT as the value per subscriber is so much lower than a conventional broadband model. Furthermore, the growing number of new entrants and all of the accompanying hype may have left end users confused about what’s genuinely available. In the absence of certainty, decision-making may be postponed, or the trusted incumbent may remain in situ. The rapid harvesting of new subscribers needed to make these new satellite networks commercially viable hasn’t materialised - yet. Proprietary vs. Standards-Based To date, end users have been required to select, and to a large extent, stick with, a single SNO. Services have required a proprietary modem to be attached to an IoT device, whether that be a drone, data buoy, tractor or even a tracking collar for remote wildlife. The key issue here is that should you
Alastair Macleod
groundcontrol.com
Companies like SpaceX have made it possible to reuse launch components but the trend for launching Low Earth Orbit satellites has also played a large part
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