Satellites and Their Emerging Role in Commercial Ventures
Brad K. / Physics 336 / April 17,1997
As satellites continue to become more effective and advanced, they
are playing a major role in some very lucrative commercial ventures. In
the ever emerging computer industry satellites are being used to speed
up Internet access and increase the effectiveness of Internet use. Satellites
also continue to play a major role in meteorology (the study of weather)
and with new technologies such as Doppler radar satellites which enable
people to prepare for natural disasters. The fast growing satellite television
industry is a boom market which has proved to be a stable investment. Many
telephone companies are receiving great amounts of revenue due to an increase
in long distance subscribers, which is also a direct effect of improved
communications satellites.
Teledesic Computer Satellites:
Satellites are helping further the computer industry through the advancement
of a technology known as Teledesic. Teledesic will speed up the time it takes
for a person to access the Internet from a personal computer and reduce
delays in Internet use. How does this new technology work? Teledesic works
on a system of broadband, that is, each satellite is devote solely to
a small limited number of users. Also to increase effectiveness of the
system the satellite is directly linked to the user's personal computer.
This is a revolutionary service which has many computer companies and users
dying to get a hold of it. When and if the service is fully operational
it is sure to increase not only the speed of Internet access to the customer
but also the bankroll of the company which is able to make Teledesic a reality
on a global level.
Problems with Teledesic:
Despite the enthusiastic and overwhelming applause of critics over
the basic idea which Teledesic represents, many experts are still very skeptical
of its overall commercial potential. Experts agree that while Teledesic
is an astonishing success on the local (small scale) level it may be hard
to translate this regional success into a global one. Most cite the fact
that at the present time there simply aren't enough satellites to ensure
use by such a limited number of users, and even if the satellites were
built the cost of the Teledesic service would balloon so high that the system
would not be a profitable business venture. However, the idea for Teledesic
certainly is an intriguing and ultimately profitable one, said one industry
expert "All the pieces needed for the system to be a total winner
aren't in place right now, but when and if they are someone is going to
make a lot of money off this".
Meteorological
Use:
Recently, the weather forecasting industry has benefited from the increased
modernization of weather satellites. The results of this new modernizing
effort have been increasingly more powerful and accurate satellites. Meteorologists
attribute this speed in prediction and accuracy of those predictions to
two main factors: more powerful computer models and new Doppler radars.
Computer models use mathematical representations of the atmosphere to analyze
current conditions and from that analysis determine what will happen to
the weather in a given area. The difference today is that computer models
are 20 times faster then they were ten years ago and they can predict what
will happen up to 30 seconds after a current reading. The new Doppler radars
are perhaps the most effective tool that has been offered to local forecasters
since the first weather satellites were launched in the 1960's. As a result
of the new Doppler technology, warnings are issued sooner, more lives are
saved and because of up to the minute forecasts there are fewer false alarms.
"By generating warnings faster we'll save more lives", said meteorologist
Steve Todd, "Every minute you save is a minute you lose, it translates
into lives and property."
The Business of Weather Satellites:
Although it is true that weather satellites are around to prevent disasters
and save lives, it is also true that there is money to be made from predicting
the weather. At the forefront of financing the technology of weather satellites
are television networks. Recently the big three of the TV industry, ABC,
CBS, and NBC have started what amounts to a race to acquire the most technologically
advanced weather satellites on the market. This is no accident that the
networks want the best weather technology to attract viewership, especially
in times of crisis, and with increased viewership there is increased sponsorship
which translates into big money for the networks. This is just another
striking example of how satellites are increasingly involved in commercial
ventures.
Television Satellites:
The television satellite that started as a small experimental venture
has recently hit a boom and looks to be one of the foremost areas of the
communications business in the 21st century. The leader of this fledgling
industry is DirectTV, a satellite television company which can currently
boast 1.2 million subscribers. Recently however, AT&T entered into
a partnership with DirectTV, and this move is sure to bolster DirectTv's
credibility as an investment and will enable it to challenge the regional
cable industry for control of the nation's air waves. AT&T's entrance
into the satellite TV market not only spells trouble for regional cable
operators but more importantly will stimulate the television satellite
industry by pouring more money into developing the new technology. An example
of this is that almost immediately after AT&T struck a partnership
with DirectTV, MCI announced its own foray into this emerging market. "AT&T's
entrance is going to make this industry fly a lot faster than it would
have otherwise" said John Aronshon, a senior analyst at a telecommunications
company in Boston. Whatever the outcome of AT&T's investment it is
sure to add life and respectability to a growing industry that may change
the way we watch TV in the future.
Limitations of Satellite
TV:
However, problems do exist with satellite TV which place it at a disadvantage
to established cable companies. For one thing the new technology is significantly
more expensive than subscribing to the local cable provider. Although this
may prevent people from immediately embracing the system, experts are quick
to point out that new technologies, although often very expensive at first,
generally decrease in price as more imitators and competitors enter a given
field. A more important problem is that for the time being at least the
satellite TV operators can not broadcast local stations. Certainly these
are problems which the industry will have to solve before it can dominate
the television market but most experts are confident that the industry
will work out its glitches and before long will replace cable as the premium
television provider.
Telephone Satellites:
The telephonic satellite industry began in the early 1960's with the
creation of Telestar 1, a communications satellite that could transmit
60 conversations at a time. When Syncom 2, a second communications satellite
was able to achieve geosynchronous orbit, telephone companies realized that
they could now market long distance telephone calls at a substantially
cheaper rate than they previously could. Soon in an attempt to gain customers,
phone companies began slashing long distance rates and this practice continues
to the present day. These satellites not only allow for quick connections
on long distance phone calls they also allow people in remote areas to
communicate. Financially these satellites bring in millions of dollars
to phone companies each year in the form of rates paid by long distance
subscribers.
Conclusion:
Satellites today are playing a very important role in many lucrative
commercial ventures. Not only are these satellites revolutionizing the
way we the computer, watch TV or make a phone call but they are also pouring
millions of dollars in revenue into companies eager to embrace this new
technology. It is evident that satellites will continue to play a major
role in the worldwide commercial economy well into the 21st century.
References
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29, April, !996 p.55-57
Greenwald, John; Marchant, Valerie; Perman, Stacy "Switched On".
Time.
26, August, 1996 p.34
Landler, Mark "AT&T Enters TV Business via Satellite".
The New York Times.
23, January, 1996 p.1
Waters, Tom "Space Satellites". The New Book of
Popular Science. New York, Grollier, 1996.