Low-Earth Orbit satellites: Spectrum access - Digital Transformation Monitor - European Commission

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Low-Earth Orbit satellites: Spectrum access - Digital Transformation Monitor - European Commission
Digital Transformation Monitor

Low-Earth Orbit
satellites:
Spectrum access
July 2017

     Internal Market,
    Industry,
    Entrepreneurship
    and SMEs
Low-Earth Orbit satellites: Spectrum access - Digital Transformation Monitor - European Commission
Low-Earth Orbit satellites:
                                                                                                     Spectrum access

                                                                     © 3Dsculptor/Shutterstock.com

Traditionally, geo stationary satellites located at more than 36,000 km above the earth have been used to provide
satellite communication to a wide area. An alternative approach however, once unsuccessfully tried in the past is now
surfacing again. The idea is to use considerably massive constellation of satellites at lower altitudes to both densify
the network and reduce latency. Although technically feasible, those numerous projects come with challenges and
access to spectrum is one of them. At stake, the possibility to provide enough capacity at the right price points to serve
markets that remain up to now unserved.
                                                                            The cost of such solution however             Above        all,    mobile    terrestrial

  1                                                                         remains important in the absolute and
                                                                            solutions are regularly looked after
                                                                                                                          communication systems were about to
                                                                                                                          be launched all over the world and all of
                                                                            tomake this solution more and more            a sudden what was supposed to be a
                                                                            affordable                                    revolutionary service was turned into a
Why are Low Earth                                                           Already tried in the past but more
                                                                                                                          more expensive and technically less
                                                                                                                          interesting offer than the then exploding
Orbit game                                                                  prone to succeed today                        GSM. In the end, few low Earth orbit
                                                                                                                          constellations were launched and at the
changers?                                                                   In the 1990’s, several players came with
                                                                            the idea of launching a multitude of          beginning of 2000, most LEO projects
                                                                            satellites in low Earth orbit (LEO) with      had been dropped or had gone bankrupt,
Because of their high position above the                                                                                  only to be purchased by investors at a
                                                                            the aim of providing communication
earth, satellites are very effective in                                                                                   fraction of the initial cost.
                                                                            services at low cost.
providing wide coverage. Indeed when
one cellular antenna on earth covers only                                   Instead of using only a few high              After that, it became pretty clear in the
a few square km, one satellite, depending                                   orbit satellites, especially geostationary    industry that the geostationary satellite,
on its elevation covers thousands of                                        orbits where satellites have fixed            with its wide-coverage capacities and its
square km.                                                                  positions relative to the Earth (at an        more recent high throughput system
                                                                            elevation of around 36,000 km), the idea      capabilities were the solution to
This explains why, when terrestrial                                                                                       providing communication services in a
                                                                            was to place smaller and lighter satellites
infrastructures have not been deployed,                                                                                   world with demand increasing by the
                                                                            orbiting at lower altitude (in the range of
satellite is usually seen as a better                                                                                     day for broadband speeds anytime,
                                                                            180 km to 2,000 km) and thus drastically
economic and practical solution to bring                                                                                  anywhere.
                                                                            reduce the cost of the solution because of
coverage to areas that would otherwise
                                                                            satellite less expensive to manufacture       Fundamentally however the very
be left completely unserved.
                                                                            and launch. This however came with            concept of LEO communication satellites
                                                                            challenges, both technical and financial.     was not dead. While the economic
                                                                                                                          interest of providing voice and
Figure 1: Presentation of LEO, MEO and GEO orbits                                                                         narrowband coverage from a low
                                                                                                                          elevation satellite position was not
                                                                                                                          demonstrated, the idea of using LEO
                                                                                                                          position to provide broadband access
                                                                                                                          surfaced few years ago with several
                                                                                                                          announcements from yet unknown
                                                                                                                          players at that time. Technological
                                                                                                                          progress had been made and the market
                                                                                                                          prospect also had changed. If one
                                                                                                                          satellite with a very broad coverage
                                                                                                                          makes sense for narrowband usage, is it
                                                                                                                          powerful enough to provide broadband
                                                                                                                          capacity for a market that is still largely
                                                                                                                          not served?

   Source: Communication satellites by William Stalling (2001) (1)

   2
Low-Earth Orbit satellites: Spectrum access - Digital Transformation Monitor - European Commission
Low-Earth Orbit satellites: Spectrum access

LEO: Densifying the network to bring          Similarly, with a densified network,          the most likely to succeed, except maybe
increased capacity and reduced                capacity is much more increased because       for OneWeb, whose status is already well
latency                                       of more important frequency reuse             advanced with 1.7 billion USD of funding
                                              capacity. By adding more satellites in the    already secured.
Reduced coverage as compared to GEO…
                                              constellations, capacity and as a result
                                                                                            Globally, the full completion of all the
The elevation that characterizes LEO has      throughput per user can be easily added
                                                                                            LEO       projects     would      result,
a direct impact on coverage. At an            at a marginal cost.
                                                                                            approximately, in more than 17,000
elevation of 36,000 km, coverage from a
                                              Who makes what? Which players,                satellites in various LEOs providing a
satellite is 2.7 wider than it is at 1000km
                                              which markets?                                total aggregated capacity of more
above the surface of the Earth. When
                                                                                            than150 Tbps. The main question that is
three satellites are required to cover the    Several new entrants not linked to            raised here is whether there are enough
Earth on GEO, at least 15 are required to
                                              traditional satellite players                 places on the market for all those
cover the whole Earth on LEO. Since
                                                                                            players.Most probably, only a few
satellites at this elevation are moving,
                                                                                            players will succeed in launching their
many more are required to provide                  17,000 satellites for more               constellation.
constant coverage.
                                                        than 150 Tbps
                                                                                            Backhauling, consumer and enterprise
… But reduced latency and increased
                                                                                            broadband as main markets
capacity                                      Among the more than 15 LEO projects
                                              that have surfaced in the last 3 years, a     Given their characteristic, LEO are
But the lower elevation of LEO satellite
                                              number of new players is vying to launch      particularly relevant for use cases where
constellation also has benefits. Indeed,
                                              new constellation projects focusing on a      large capacity is required. Not
since satellites are closer to the Earth
                                              market where high capacity and high           surprisingly, most ambitious projects in
than GEO satellites, the trip time
                                              throughputs are required.                     their size focus on broadband
between the ground and the satellite and
                                                                                            applications, something that can be
the satellite and the ground is               The three most publicized projects in         served with different approaches:
significantly reduced and so is the           this regard are OneWeb, LeoSat and
latency, which is one of the caveats of       SpaceX initiatives. The latter has             Through mobile backhauling: in areas
GEO satellites in general. Latency is         received much press because of its CEO          where terrestrial backhauling is too
critical for real time applications, of       Elon Musk, also funder of Tesla, who            costly to deploy.
which VoIP notably.                           envisions sending people to Mars.              Fixed Broadband access for B2C in
                                              SpaceX is also known for the                    remote/unserved/underserved areas
                                              development of a launcher, whose 1st            including in emerging markets.
                                              stage can be reused (3).
  Typical latency of GE0 vs LEO:                                                             Broadband       for     high     mobility
                                              This capability is aimed at further             applications (trains, planes, boats).
                                              reducing the cost of launching satellite to
            280 vs 20 ms (2)                  space. The fact that these projects have       Dedicated governmental, scientific and
                                              been the most talked about does not             enterprise connectivity.
                                              however necessarily mean that they are
                                                                                            M2M and imaging targeted by other
                                                                                            players
                                                                                            While broadband focused projects have
Figure 2: Main broadband-focused LEO constellations
                                                                                            gotten much of the highlight, M2M, asset
                                                                                            tracking and imaging are also targeted
                                                                                            by other kind of players.

                                                                                            The only three LEO projects of the 2000s
                                                                                            to have survived after bankruptcy
                                                                                            (Iridium, Orbcomm and Globalstar) have
                                                                                            already launched a second generation of
                                                                                            satellite to replace the first one. They,
                                                                                            still focus on M2M and relatively
                                                                                            narrowband          applications     (voice,
                                                                                            messaging). Those projects thus require
                                                                                            less satellite. Iridium NEXT for instance
                                                                                            will have 66 operational satellites.
                                                                                            As for imaging, this market has been
                                                                                            invested by new players, often start-ups
                                                                                            leveraging very low cost micro satellites.
                                                                                            Planet is one of them. It aims at
                                                                                            photographing the earth every day and
                                                                                            thus take quasi real time imagery. Those
                                                                                            updates will be critical for cartography
                                                                                            and will pave the way for new innovative
                                                                                            applications based on low cost earth
  Source: IDATE                                                                             observation.

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Low-Earth Orbit satellites: Spectrum access - Digital Transformation Monitor - European Commission
Low-Earth Orbit satellites: Spectrum access

                                              Figure 5: Market potential compared, by technology in low-density areas

  2

How will LEO
constellations fare
with competition
                                                Source: IDATE
Which impact of LEO constellation
projects on the satellite industry?
                                              As another comparison point, Eutelsat        Is 5G an opportunity or a threat for
Because most ambitious LEO projects in        expect to lower its CapEx required to        the satellite industry?
figures are carried out by new players        provide 1 Gbps to this same 1 million
(i.e. not traditional GEO operators), LEO                                                  The biggest competition however may
                                              USD threshold in the mid term (4).
is often seen as a potential disruption in                                                 not come from the satellite industry but
the industry together with the                Figure 4: OneWeb vs ViaSat 3                 from the further expansion of terrestrial
technologies it involves. With their                                                       communication itself through 5G. If LEO
capability to drastically reduce the cost                                                  projects can help decrease the cost of
to deliver 1 Gbps, LEO could indeed                                                        satellite connectivity significantly, it still
further increase a price competition that                                                  cannot compete with terrestrial network
is already installed in some markets and                                                   when fixed infrastructures are already
is causing financial difficulties even to                                                  there (backbone and backhaul). This is a
biggest satellite operators on the market                                                  threat for the viability of LEO projects.
(Intelsat, Eutelsat, SES…)                                                                 Using satellite and especially LEO as a
If we look at estimated CapEx to deliver a    Complementarities between LEO and            backhauling technology will be a way to
Gbps, we indeed see a sizeable difference     GEO   exist
                                               Source: IDATE
                                                                                           complement rather than compete with
between OneWeb for instance and a                                                          such movement should operator really
                                              However, confrontation between orbits        decide to bridge the connectivity gap.
traditional GEO satellite operator. When
                                              holds true only if LEO, MEO and GEO          Because 5G will use frequency bands
OneWeb would invest 260,000 USD to
                                              players remain distinct. It does not now     similar to satellites (mmWaves), satellite
provide 1 Gbps, it takes between 2 and 9
                                              seem to be the case as almost all GEO        could also be more tightly integrated into
million USD for a traditional GEO
                                              players are currently involved directly      5G. A 5G device would for instance
satellite operator.
                                              (building) or indirectly (partnership) in    seamlessly switch to any satellite
The race toward cheaper satellite             LEO / MEO activities. Of the top 5 fixed
connectivity is however not over. GEO         satellite operator, only Eutelsat has        connectivity available once connection
connectivity price has already well           currently no implication in such projects.   with terrestrial infrastructure lost. This
decreased in the last years with the                                                       would enable the persistent coverage
                                              In a competitive environment, LEO and        goal of 5G. Asset tracking is a good
development of HTS satellites and
                                              MEO      are   increasingly     seen    as   example of service that would benefit
several innovations will enable GEO
                                              complementary to GEO and as a way to         from this capability. A plane that would
carriers to reduce cost even more. A GEO
                                              differentiate from the competition. If       be connected to an Air To Ground 5G
satellite such as ViaSat-3 due to be
                                              LEO seems more adequate to provide           networks would similarly benefit from
launched in 2019 should thus provide a
                                              high capacity and low latency for most       this capability when crossing the oceans.
1 Tbps capacity. With 3 satellites
                                              demanding applications, GEO remains
required to cover the earth, the cost to                                                   This kind of complementarity is
                                              the most adapted for broadcast purpose
produce a 1 Gbps capacity could be well                                                    currently limited. Solutions exist but are
                                              in a context where video still account for
below the 1million USD price point.                                                        often proprietary and costly, hence the
                                              the most important part of revenues in
                                              the industry.                                requirement for a, cooperation between
                                                                                           terrestrial and space sector. This needs
Figure 3: Evolution of GEO capacity in Gbps                                                to materialize in the standardization
                                                                                           space, especially within 3GPP where
                                                                                           cellular technologies are defined but also
                                                                                           on the regulatory field with the spectrum
                                                                                           allocations decided on the international
                                                                                           and local level.
                                                                                           For cooperation to be possible or
                                                                                           competition to be fair, each player must
                                                                                           have a fair access to spectrum depending
                                                                                           on its need and the value it bring to the
                                                                                           market / society.

     Source: IDATE

     4
Low-Earth Orbit satellites: Spectrum access

                                              Lower part of the spectrum favours          This means that Ka band is currently
                                               propagations. It is better for instance     much looked after and that using this

  3                                            for indoor coverage or rural areas for
                                               terrestrial players. For satellites it is
                                                                                           band will be increasingly complex in the
                                                                                           future in order to limit interference. The
                                               also better in places where rain falls      prospect of 5G networks to use part of
                                               are important, even though mitigation       this frequency band is a concern for
Spectrum is key to                             techniques have been developed              satellite players. In the US, but also in
                                                                                           South Korea, it has already been decided
                                              In turn, higher frequencies are more
increase                                       difficult to exploit but as a result have
                                                                                           that the 28 GHz band, located in the Ka
                                                                                           band will be devoted to 5G.
                                               more bandwidth to use. Satellite
throughputs but                                players have been historically capable      Other bands such as the L, S, C and X
                                               of using higher frequency because           band are more common to applications
limited in                                     more power can be used for                  with less important need in throughput
                                               transmission and thus compensate for        such as M2M. It is also commonly used
availability                                   signal degradation,                         by earth observation LEO projects.
                                              Higher frequency bands come with            V bands, the future for next
The more spectrum,           the    more       smaller beams. Wider beam are better        generation Very High Throughput
capacity and bandwidth                         for broadcast usage while smaller           Systems?
Frequency bands are of course of critical      beams are better for capacity.
                                                                                           In June 2016, Boeing revealed its plan for
importance       for     any      wireless   Ka band is the preferred band for             a LEO constellation made up of 2956
communication system whether on earth        capacity but its access could prove to        satellites operating at 1200km in the V
or in the space. This is all the more true   be difficult in the future                    band. This band is currently quasi
as more and more spectrum are required                                                     unused because of technical difficulties
today to increase throughput and             To facilitate the identification of
                                                                                           associated with its high position in the
capacity. In the past only limited amount    frequency bands, letters have been
                                                                                           spectrum.
of spectrum was required to provide          assigned to them. The main bands used
voice or messaging services. With the        by satellite players are presented in the     However, this band has several merits
development of new data intensive            following figure, ordered according to        because of the large amount of
usages such as video consumption,            their position in the spectrum.               bandwidth available. There should not
access to the cloud, holding a limited                                                     be thus any sharing issue similar to the
                                             This also corresponds historically to the
amount of spectrum is no longer an                                                         one experienced in the C and Ka band
                                             time when those bands started being
option and most players are fighting to                                                    today, especially for what pertains to the
                                             mastered and used. Ku band has been
get this access.                                                                           repartition of the usage between
                                             used for many years, while Ka band
                                                                                           terrestrial and satellite players.
Not all frequency bands are equal…           usage, although growing rapidly is much
                                             more recent.                                  Since Boeing announcement, several
It is important to understand that not all                                                 other projects using this band have
frequency       bands     have      equal    Because they provide enough capacity
                                                                                           surfaced and been filled to the ITU. This
characteristics. Therefore frequency         and can be used with smaller antennas
                                                                                           interest is not limited to LEO projects but
bands have different values to players.      but also because satellite operators now
                                                                                           also shared by MEO and GEO players.
The position of the band in the spectrum     have enough experience with them, Ku
is important but the width of the            and above all Ka band are the preferred       In many ways, the V band is today in the
frequency band is important too. Below       bands for LEO constellations projects.        same position as the Ka band in the
are basic principles that need to be         Ka band is already the preferred band         1990s. It has been identified as
understood:                                  for GEO High Throughput Systems (HTS)         promising         but        propagation
                                             with the notable exception of Intelsat        characteristics still need to be further
                                             who prefers the Ku band because it is         studied before commercial equipment
                                             less subject to interference created by       can be developed. Those developments
                                             rain falls.                                   could take 10 years, before equipment
                                                                                           are available at an economical price
                                                                                           point.

 Figure 6: Frequency bands and main areas of use

                                                                                           References
                                                                                           (1)Communication satellites by William Stalling
                                                                                           (2) High Throughput Satellite Communications
                                                                                           Systems: MEO vs. LEO vs. GEO
                                                                                           (http://www.harriscaprock.com/blog/high-
                                                                                           throughput-satellite-communications-systems-meo-
                                                                                           vs-leo-vs-geo/)
                                                                                           (3) http://www.reuters.com/article/us-space-
                                                                                           spacex-launch-idUSKBN1711JY
                                                                                           (4) http://spacenews.com/eutelsat-does-the-math-
                                                                                           on-reducing-future-satellite-costs-by-at-least-20-
 Source: IDATE                                                                             percent/

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About the Digital Transformation Monitor
The Digital Transformation Monitor aims to foster the knowledge base on the state of play and evolution of digital transformation in
Europe. The site provides a monitoring mechanism to examine key trends in digital transformation. It offers a unique insight into
statistics and initiatives to support digital transformation, as well as reports on key industrial and technological opportunities,
challenges and policy initiatives related to digital transformation.
Web page: https://ec.europa.eu/growth/tools-databases/dem/

This report was prepared for the European Commission, Directorate-General Internal Market, Industry, Entrepreneurship and SMEs;
Directorate F: Innovation and Advanced Manufacturing; Unit F/3 KETs, Digital Manufacturing and Interoperability by the consortium
composed of PwC, CARSA, IDATE and ESN, under the contract Digital Entrepreneurship Monitor (EASME/COSME/2014/004)
Authors: Vincent Bonneau & Basile Carle, IDATE; Laurent Probst & Bertrand Pedersen, PwC

DISCLAIMER – The information and views set out in this publication are those of the author(s) and should not be considered as the
official opinions or statements of the European Commission. The Commission does not guarantee the accuracy of the data included in
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might be made of the information contained in this publication. © 2017 – European Union. All rights reserved.
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