'Internet Satellite Constellation' Surrounding Earth... Will the Space Internet Era Begin? [Im Ju-hyung's Tech Talk]

Global Tech Companies Like Starlink, Amazon, and OneWeb Compete
Thousands to Tens of Thousands of Satellites in Low Earth Orbit Provide Internet
Innovations Like CubeSats and Reusable Rockets Reduce Deployment Costs
Improved Access for Underdeveloped Countries Difficult for Traditional Telecoms to Reach

SpaceX Falcon 9 reusable rocket flying with a communications satellite / Photo by Yonhap News

[Asia Economy Reporter Lim Juhyung] Global tech companies are paying attention to satellite internet services that allow internet access via satellites. The so-called 'internet satellite constellation' technology involves deploying thousands of low Earth orbit satellites to create a dense communication network around the Earth.

Currently, most internet services are dominated by telecommunications companies, but if the internet satellite constellation technology is realized, tech companies will be able to provide ultra-high-speed internet to a larger population at a much lower cost than telecom operators.

Focusing on this aspect, global tech companies headquartered in space science advanced countries such as the United States and the United Kingdom are fiercely competing to realize internet satellite constellations.

A representative example is the 'Starlink' project promoted by entrepreneur Elon Musk, famous for the electric vehicle manufacturer Tesla. Starlink plans to launch a total of 12,000 small low Earth orbit (about 500 km above the Earth) internet satellites by the mid-2020s to build a global ultra-high-speed internet network.

60 'Starlink' internet satellites mounted on the rocket payload. / Photo by SpaceX Twitter capture

According to an announcement by Musk's reusable rocket manufacturer SpaceX, which is carrying out the project, once Starlink is fully operational, it will achieve internet data transmission speeds of 150 Mbps anywhere in the world. Since the average internet transmission speed in Korea, as compiled by the Korea Data Industry Promotion Agency, is over 25 Mbps, if Starlink becomes a reality, the global internet usage infrastructure will be revolutionized.

Besides the Starlink project, there are several others in the internet satellite constellation competition. Jeff Bezos, CEO and founder of the US e-commerce company Amazon.com, established the rocket company Blue Origin in 2000 and is promoting the 'Kuiper Project,' a plan to build an internet satellite constellation based on it.

Promotional video of the internet network by 'OneWeb,' a startup building an internet satellite constellation jointly invested by the UK government and India's 'Bharti Global.' The satellites densely surround Earth's orbit, enabling ultra-high-speed internet access anywhere. / Photo by YouTube capture

Last year, the startup OneWeb, invested in jointly by the UK government and Indian telecom company Bharti Global, is also launching dozens of internet satellites into space. Headquartered in London, UK, this company plans to launch a total of 648 satellites and start global services in the UK, India, and other regions.

The internet satellite constellation concept involves densely arranging thousands to tens of thousands of small satellites in low Earth orbit within 500 km above the Earth to build a massive communication network covering the entire planet.

In fact, the business of providing internet via satellites has existed in the past, but it has faced quality issues such as unstable signals and slow data transmission speeds. However, using internet satellite constellations is expected to solve the chronic quality problems of satellite internet all at once.

Especially thanks to advances in satellite manufacturing technology and space engineering, the feasibility of internet satellite constellations has greatly increased.

CubeSat of the European Space Agency (ESA). CubeSat refers to a small satellite weighing around 100kg. / Photo by Intel

Internet satellite constellations mostly use ultra-small satellites called 'CubeSats,' which weigh around 100 kg. CubeSats have very low manufacturing costs and are easy to mass-produce.

The development of space engineering, such as reusable rockets, has also greatly helped reduce satellite launch costs for satellite constellation plans. For example, SpaceX's reusable launch vehicle Falcon 9 can fly into orbit, deploy satellites, and then return to the ground. Thanks to this, the first-stage rocket can be reused without significant repairs, significantly lowering launch costs compared to conventional rockets.

So why are tech companies putting effort into the internet satellite constellation business? Usually, internet provision is a core business for telecom companies rather than tech companies.

The reason lies in the powerful scalability of satellite internet.

Starlink satellites moving in a line after reaching 550km above the Earth. / Photo by YouTube capture

Telecom companies install broadband networks using fiber optic cables and other means to provide internet to consumers. This method involves considerable costs and long construction periods. While it is relatively easy to provide internet to urban residents, expanding the network to rural or remote areas with underdeveloped transportation is difficult.

According to data released by the internet-related statistics site Internet World Stats, as of 2019, the global internet penetration rate was only 4.536 billion people (58.8%). Residents in underdeveloped countries, rural, and remote areas still have limited internet access.

However, satellite internet allows ultra-high-speed internet access anywhere within the antenna beam coverage of the satellite constellation, as long as there is a terminal on the ground. Although initial satellite constellation construction costs are incurred, subsequent service provision procedures are very simple.

If tech companies build internet satellite constellations and gain 3.18 billion people (41.2%) who are unreachable by general telecom companies as customers, they will acquire a massive market. This will open the so-called 'space internet' era and create a monopolistic market.