How Low-Earth Orbit Satellites Are Transforming Global Connectivity

Over the past decade, low-earth orbit (LEO) satellites have revolutionized internet access. Recently, the Federal Communications Commission (FCC) announced that it is expanding the spectrum available to Starlink and other non-geostationary orbit (NGSO) operators. This expansion is making improved broadband speeds more attainable, which is creating a rapidly growing opportunity for channel partners to capitalize on today.

LEO satellites provide several significant advantages over their geostationary (GEO) counterparts, particularly in terms of reduced latency. GEO satellites operate at high altitudes, resulting in a latency of approximately 400-700 milliseconds due to the long distances data must travel. In contrast, LEO satellites orbit at altitudes of 1,200 miles (2,000 kilometers) or less and move at speeds of about 17,000 miles per hour, which reduces latency to just 20 to 50 milliseconds.

A Faster Way to Support Rural Connectivity, Critical Communications

Because of their lower latency, LEO satellites can offer more extensive coverage while supporting consistent communications, especially in rural areas such as remote towns and villages, where traditional internet connections are often unreliable or unavailable.

Additionally, LEO satellites can support critical communications in the aftermath of natural disasters like wildfires, major earthquakes and hurricanes. For example, during Hurricane Helene, traditional landlines and cellular networks failed across the Carolinas for over a week, severely hindering emergency services. In these types of situations, LEO satellites can play a vital role in keeping communities connected.

Related:Coffee with Craig and James Episode 141: MetTel, Low-Earth Orbit Satellites

MetTel's Ed Fox joined the Coffee with Craig and James podcast earlier this year to talk about the LEO satellite opportunity for channel partners.

LEO satellites can be deployed more quickly than GEO satellites, making them ideal for customers who need temporary connectivity or require secondary and tertiary connections for redundancy and diversity. They are particularly useful in locations where wired connectivity is unavailable or when faster connectivity is needed. Some commercial applications that benefit from this technology include oil and gas operations, construction projects such as housing developments, commercial buildings, bridges, and stadiums, and maritime communications.

However, it is important to note that LEO satellites may not be suitable in situations where the location is obstructed by large trees, mountains or tall buildings. Additionally, connectivity can be temporarily affected during major storms until the weather clears.

Fast-Growing Market Segment Creates Growth Opportunities for Channel Partners

Markets and Markets estimates that the LEO satellite market will grow from $12.6 billion in 2023 to $23.2 billion by 2029, at a compound annual growth rate (CAGR) of 13%. Additionally, Markets and Markets researchers anticipate that LEO satellite volume will grow from 2,970 units to 4,363 units by 2029.

The increasing demand for LEO satellite connectivity among businesses and consumers is creating substantial opportunities for Trusted Advisors, with typical deal sizes ranging from $350-$500 per month, per site. A recent survey by Avant Analytics shows a notable rise in demand for LEO satellite connectivity, with more than 150 inquiries received each week, making it one of the fastest-growing segments in connectivity.

By adding LEO-enabled high-speed broadband access to their solution portfolios, trusted advisors can play an important role in bringing more educational resources and economic development to rural communities. Furthermore, because these satellites improve resilience against natural disasters by ensuring reliable communication during crises when traditional networks might fail, trusted advisors can also assist their clients in enhancing communication and ensuring safety during emergencies.