By Nick Mitsis
Terrestrial networks such as Ancillary Terrestrial Components (ATC) can enhance availability, efficiency and economic viability of Mobile Satellite Services (MSS) by reusing at least some of the frequency bands that are allocated to cellular systems. Without ATC, it may be challenging for MSS operators to reliably serve densely populated areas because the satellite's signal may be blocked by urban structures. As a result, mobile satellite business executives are pursuing solutions using ATC retransmissions, which can reduce or eliminate this problem, paving the way for a strong business for next-generation mobile communications.
Throughout the last five years, the U.S. Federal Communications Commission (FCC) has moved to permit use of MSS spectrum for integrated satellite-terrestrial services, says Tim Farrar, president of Telecom, Media and Finance Associates. "Deployment of terrestrial base stations, known as ATC, will enable MSS operators to provide service in urban areas and inside buildings which satellite signals are too weak to penetrate," he says. "New, more advanced satellites will also allow customers to use small, low-cost handsets for mobile services."
The FCC's decision to permit MSS companies to use their allocated radio spectrum for an ATC-based communications network now has given way to hardware development. All the major players within this arena have business plans and infrastructure in the works. ICO North America in May 2005 raised $650 million and told its investors that ATC rights could be valued as much as $9.8 billion. ICO also signed a contract with Space Systems/Loral (SS/L) for a satellite that is slated for in-orbit delivery by next year. Likewise, Terrestar, which raised $200 million in a private placement in mid-2005, also has a spacecraft under construction at SS/L and is seeking to launch it into orbit by 2008. Mobile Satellite Ventures (MSV) continues to move forward with its ATC-enabled business plan and remains on track to complete a satellite contract with Boeing -- valued at more than $500 million for the two North American spacecraft.
But even with solid hardware in space, service and customer uptick will determine success. Likewise, MSS operators will need to partner with larger players, both to fund the estimated $3 billion projected cost of terrestrial base station deployment and to secure adequate mass-market distribution channels, adds Farrar. "We believe that the optimum partner would be a satellite TV operator such as DirecTV or Echostar, because of their need to develop new wireless and broadband service offerings, and the shortage of alternative spectrum options for deploying a nationwide wireless network."
Another option would be to partner with satellite radio providers such as XM Satellite Radio, Worldspace or Sirius Satellite Radio to provide capacity for mobile video services. "There are currently five proposed MSS-ATC systems, from MSV, Terrestar, ICO, Inmarsat and Globalstar. However, there won't be enough partners for all of these companies to successfully deploy their own national terrestrial network," Farrar adds.
Email
Comments
Print
Reuse
