Today’s satellite-based data and messaging carriers have found the secret to their success is partnering with those they once considered their primary competitors-terrestrial-based wireless data carriers.
At first, satellite data carriers figured their greater coverage range would outdo that of terrestrial carriers. While this proved true in more remote areas, connection to the satellites proved difficult in larger urban centers.
At the same time, terrestrial data carriers have needed a way to reach remote areas for applications such as remote monitoring, which can be too cost-prohibitive to do terrestrially.
Since the one network held what the other lacked, joining them seemed the easiest way to ensure true ubiquity of coverage, and the benefits of doing so are speeding what many believe will become a growing trend-integrated terrestrial/satellite wireless data networks.
Two satellite companies currently integrated with terrestrial wireless data networks include Orbcomm Global L.P. and American Mobile Satellite Corp.
Orbcomm employs 36 low-earth-orbit satellites that transmit on a lower frequency level that only allows for data, not voice.
“We feel strongly that this is not just a momentary thing,” said Scott Webster, chairman and chief executive officer of Orbcomm. “It’s an important trend in the industry. Combining satellite-based data with terrestrial networks provides unmatched availability of service. The two are really complementary. It’s a natural.”
He compared the scenario to the wireless phone industry, where several wireless phones now are equipped with dual-mode capabilities, digital when in cities and analog when in more remote areas.
“At first I thought we would be competitive with the terrestrial networks, but we quickly concluded there was a strong win-win solution that could be deployed,” Webster said. “It allows the best parts of each network to come to the fore.”
Orbcomm’s most notable hybrid integration agreement is with Aeris Communications Inc., which recently completed national coverage of its MicroBurst cellular control channel packet data technology. Orbcomm also has hybrid services with BellSouth Wireless Data L.P. and its sister company Rogers Cantel in Canada, which both operate Mobitex packet data networks.
“Obviously there are others out there,” Webster said. “Our intention is not to be exclusive to anyone. We’ll provide gap-filling services to any terrestrial-based firm.”
AMSC is integrated with just one terrestrial-based carrier, its Ardis subsidiary, which AMSC bought from Motorola Inc. and others last year. AMSC operates a geostationary satellite placed over North America. The company said owning either end of the network-both terrestrial and satellite-negates the need to negotiate deals with other carriers.
“We think it’s a good trend that we started. The acquisition of Ardis allowed AMSC to put a more stable and visible company into the marketplace and that helped,” said Bob Goldsmith, executive vice president and chief operating officer of AMSC. “From an architectural standpoint, you can conceptualize work very quickly, where it would take two organizations much longer. From a technology platform, it gives you a better critical mass of people and skills to leverage.”
Since integrating with terrestrial providers, both satellite carriers say they have seen tremendous response from the marketplace. Perhaps this is because satellite carriers have much more to gain from such partnerships, as they have the greater need, according to Konstantin Zsigo, president of Zsigo Wireless Data Consultants Inc.
“Satellite carriers have a lot to gain by hooking up with as many partners as they can,” he said. “I think it represents more of a win for the satellite people because only a tiny fraction of (terrestrial carriers’) business has a requirement for” remote coverage. Most wireless data applications are used by businesses in urban areas, he said.
“I think many of the applications that require satellite technology are for a period inside places with a high population. Trucking monitoring, for example, moves from centers of population to areas of pure desolation,” he said.
Satellite coverage often is spotty in urban areas because transmission requires a direct line-of-sight to the satellite, which things like buildings can block. As such, a terrestrial backup is necessary when passing through such areas.
Another issue is terrestrial wireless data carriers have an installed base of customers paying for wireless data services who satellite carriers want to attract. By integrating with the terrestrial network, satellite carriers gain data traffic from those users, while terrestrial carriers benefit from expanded coverage.
“These terrestrial users wanted to extend beyond the cities,” said Webster.
“They compete on coverage. Terrestrial carriers face the prospect of diminishing returns when building out in thinner and thinner populated regions. They team up with us and get instant ubiquitous coverage.”
The benefits are so strong, few satellite carriers see any way to avoid integration.
“It’s not a trivial task, but one that will be necessary,” Goldsmith said of internetworking. “The fact of the matter is that the customer is going to drive it ultimately … I think it’s a trend that will continue.”
According to Zsigo, the evolution to Internet Protocol-based networks will speed the process.
“With the Internet, it’s becoming easier,” Zsigo said. “The network piece is less technically challenging … It inspires more cooperation amongst an otherwise fragmented industry.
“It’s every carrier’s individual responsibility to move towards IP,” he continued. “The process of connecting these networks should then be easy. There’s no excuse for you not to be an IP carrier in the wireless industry.”
