When it comes to
the next generation of broadband services, fiber-based gigabit networks and
5G-enabled fixed wireless networks have drawn much-deserved attention. But
satellite broadband services and integrated satellite and terrestrial services are
becoming potent new sources of competition to the benefit of both residential
consumers and enterprise customers.
Advanced
geostationary orbit and emerging non-geostationary orbit fixed-satellite
broadband providers are fast approaching the ability to reach residential
consumers nationwide with high speeds. Competing fixed-satellite broadband
services are increasingly offering consumers and businesses access with 25
Mbps, 50 Mbps, and even 100 Mbps download speeds. Near-future satellite
broadband technologies are anticipated to reach terabit-level speeds.
According to the
FCC’s 2018 Broadband Progress Report,
at the end of 2016, about 92.3% of the U.S. population had access to fixed
broadband Internet access services offering speeds of 25Mbps/3Mbps for uploads
and downloads. Fixed broadband service coverage numbers rose to 95.6% of the
population when satellite broadband services are included. Importantly, fixed-satellite
broadband services have the potential to quickly close the broadband coverage
gap almost entirely and to give consumers who already have access to broadband
services new competitive choices.
Since 2017, the
FCC rightly has encouraged satellite broadband services, including by granting
new market entrant applications and by streamlining satellite service rules.
Going forward, the Commission should continue making expeditious approval of
satellite-based broadband services a priority. The Commission should follow
through with its ongoing effort to streamline rules. Also, the Commission should reduce
processing delays and at all times seek to make suitable spectrum available in
a timely fashion for new satellite technologies and services, for example, like
Ligado’s proposed service to use satellite-terrestrial spectrum on an
integrated basis to serve primarily industrial enterprises.
Emerging Competition from Geostationary Orbit
Fixed-Satellite Broadband Services: HughesNet and ViaSat
The Satellite Industry Association’s 2017
report indicates that
there were nearly two million residential subscribers to geostationary fixed
satellite broadband services at the end of 2016. The
FCC’s 2018 Broadband Progress
Report called specific attention to geostationary
fixed-satellite broadband services offered by Hughes Network Systems and
ViaSat: “The 2017 launches of the high throughput Jupiter 2 and ViaSat 2
satellites by Hughes and ViaSat, respectively, could further increase 25 Mbps/3
Mbps satellite offerings in the future.”
HughesNet is
currently the largest provider of residential fixed broadband service, with
approximately 1 million subscribers in 2017. In March of 2017, HughesNet
deployed its advanced EchoStar XIX satellite, thereby doubling the capacity of
its prior satellite configuration. Hughes’ reply comment in the FCC’s broadband
progress report proceeding stated the EchoStar XIX
enables it “to deliver broadband-defined speeds of 25/3 Mbps for residential
users and 55/5 Mbps for enterprise users across the continental United States.”
Meanwhile, Hughes is planning an early 2021 launch of its EchoStar XXIV/JUPITER
3 ultra-high density satellite, which “will provide residential and commercial
Internet and data services, including in-flight Internet and network backhaul
for remote cellular towers.” It is reported that the Echostar XXIV/JUPITER
3 will have a total throughput of 500 gigabits per second.
At the end of 2017 ViaSat had about
577,000 residential subscribers to its broadband service, according to a
quarterly earnings report. On
February 2 of this year, ViaSat announced the availability of its fastest
residential broadband service to date. Enabled by ViaSat-2, its latest
generation satellite, the new satellite broadband service has advertised speed
tiers reaching 25 Mbps, 50 Mbps, and 100 Mbps in download speeds. Via-Sat’s new
satellite broadband service is available across the nation and offers unlimited
data for all of its plans. A
San
Diego Union-Tribune
story indicates that ViaSat intends to be
competing with HughesNet and is also “positioning its service as a higher
speed alternative to DSL offerings.” And ViaSat’s future plans include the
launch of its ViaSat-3 satellite, which potentially will offer 1 terabit per second
download speeds.
Emerging Competition from
Non-Geostationary Fixed-Satellite Broadband Services: OneWeb, Space Norway,
Telesat, and SpaceX
The FCC’s 2018 Broadband Progress Report also
highlighted recent agency efforts to close the digital divide by promoting
non-geostationary satellite orbit (NGSO) fixed-satellite services with
purported terabit-level speed capabilities. In June 2017, for instance, the
Commission granted market access to SoftBank-backed OneWeb for its NGSO system. The Commission also granted NGSO
applications by Space Norway and Telesat in 2017.
According to
the FCC’s OneWeb Order, OneWeb’s
system is set to consist of “a constellation of 720 satellites evenly
distributed in 18 near-polar orbital planes, at an approximate altitude of 1200
kilometers.” OneWeb intends to use its system of numerous low-orbit satellites
“to provide high-speed, affordable broadband connectivity to anyone, anywhere”
in the United States, with launches planned for 2018 and 2019. Reports indicate that OneWeb’s plans include “connecting every
unconnected school” by the year 2022. OneWeb’s first satellite constellation is
projected to reach speeds of seven terabits per second, with successive
constellations reaching significantly higher speeds.
Meanwhile,
Space Norway’s planned “Arctic Satellite Broadband
Mission (ASBM) system consists of two satellites in one orbit,” which would
provide fixed broadband service coverage to unserved and underserved
residential customers in the Artic region of the United States. Additionally,
Telesat was “permitted to access the U.S. market using a proposed constellation
of 117 satellites,” and thereby “enhance competition among existing and future”
fixed-satellite broadband services.
Furthermore,
on February 14, FCC Chairman Ajit Pai proposed that the Commission grant the
application of Elon Musk’s SpaceX “to provide broadband services using
satellite technologies in the United States and on a global basis.” Reportedly, SpaceX would deliver fixed-satellite
broadband services using “4,425
satellites in non-geostationary orbit traveling in a tightly choreographed
ballet 700 miles above the surface of the Earth.”
The FCC Should Continue Promoting
Satellite-Based Broadband Technologies
The
FCC’s 2018 Broadband Progress Report
indicates that “[a]s of year-end 2016… over 24
million Americans still lack fixed terrestrial broadband at speeds of 25 Mbps/3
Mbps.” Also, 30.7% of Americans in rural areas as well as 35.4% of Americans on
Tribal lands lacked access to fixed terrestrial broadband with speeds of 25
Mbps/3 Mbps.” Fixed-satellite broadband services – including those briefly
surveyed above – can provide an important solution for reaching unserved and
underserved areas. Furthermore, fixed satellite broadband platforms can offer
additional, competing choices to residential consumers and businesses in those
areas already covered by wireline broadband networks and soon to be covered by
5G fixed wireless networks.
Moreover, advanced satellite-based broadband technologies are
necessary to fully enable the Internet-of-Things. Satellite services will be essential
for transmitting geo-location information to vehicles as well as for
transmitting other data to myriad types of smart devices and equipment. Pending before the Commission, for example, is Ligado’s proposed service, which
would use satellite capability in combination with a terrestrial network to deliver
smart device communications. If approved, the service would primarily support
transportation, energy, electric utility, and public safety industry sectors.
Ligado’s proposal, which depends on the use of mid-band spectrum in the 1-2 GHz
range, was filed at the Commission back in December 2015. And the public
comment period concluded in August 2016. Unless and until the FCC resumes its
review process and approves the proposal, valuable mid-range spectrum resources
will continue to go unused and generate no economic or other public benefits.
In sum,
satellite technologies are poised to become increasingly important competitors
in the next-generation broadband services market and essential facilitators of
the Internet of Things. Accordingly, the FCC should build on its recent track
record of promoting fixed-satellite broadband services. Indeed, prompt approval
of new services using satellite-based technologies should remain a top priority.
Streamlining of satellite service-related rules and clearing spectrum for
commercial usage by satellite services should also remain imperatives.