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Arun Rishi Kapoor
Space connectivity: Threats and opportunities for telcos
Technological innovation and development are transforming the communications industry radically. Due to fierce competition in all markets, the telecommunications industry has to think ahead, be more open to newer business models and venture into new technological spheres. Well-timed investments in disruptive technologies, human capital and processes or alliances with disruptors are essential to survival in an ever-changing digital world.
Space connectivity
There are great examples of prominent companies such as Facebook, X (formerly Google X) and Airbus which are worthy of considerable attention from communications service providers (CSPs), especially those looking to become digital service providers (DSPs). The three companies have set examples of futuristic disruption through their innovative solar-powered plane experiments: Aquila, Loon Project and Zephyr respectively. These planes/balloons/drones (in Zephyr’s case, they call it (HAPS) “High Altitude Pseudo-Satellite”) have a few common attributes -- they all are fully solar-powered, fly above air traffic and aim to provide Internet connectivity to remote areas of the world. These eco-friendly, unmanned aerial vehicles are developed to fly (float) at an altitude of 60,000 - 75,000 feet above the Earth’s surface and circle around its stratosphere.
The communication signals from ISPs (Internet service providers) on the ground will be carried forward to remote areas by these planes. With such a unique communication mechanism used by solar planes, we will be more connected – be it in dense forests, desolated deserts, the middle of sea or high altitude mountains. These fleets of drones/planes acting as flying towers will communicate with each other and with the telecommunications partners (ISPs) on the ground to create a network which can provide Internet connectivity to anyone below on Earth. As mentioned above, all three research and developments programs aim to provide economical Internet services to poorly connected regions. However, there are other potential applications too, such as military defence, space systems, intelligence and security services, humanitarian missions, weather services, and so on.
The IoT explosion
Take a look at the predictions about the ‘IoT explosion’. Without worrying much about setting up much infrastructure, there will be a great boost in Internet coverage and hence connected devices. Satellite-based economical Internet connectivity over the globe will support a powerful and momentous growth in emerging technologies based on IoT and drones.
New disruption
Such significant changes will bring further bring disruption in the already-disrupted telecommunications business. The types of disruptions in the value fabric will include: On top of these, there are an array of challenges which will affect this digital transformation.
Challenges
As rightly pointed out by John Chambers, Executive Chairman, Cisco Systems, “At least 40 percent of all businesses will die in the next 10 years… if they don’t figure out how to change their entire company to accommodate new technologies.”
In order to survive in such a volatile environment, CSPs and DSPs must learn how to quickly adapt and transform in this fast-changing world.
