Satellites in the Future
Gigi W. / Physics 338 / May 19, 1997
Schine and Elstrom points out that hundreds of launches in the next
few years will open a new Klondike for the few that prevail (62). The satellite
business could be more than triple, to $29 billion, by year of 2000 as
big aerospace players and dozens of startups race to offer new consumer
services and carve up the global marketplace. The following are the main
services they will offer:
Internet Access, Fast
and Cheap
Many big companies are scurrying to build fleets that will allow the
consumers to link some computers to the Internet. Hughes wants to use satellite
signals sent directly to tiny home dishes, viewers can receive vast programming
choices, clearer pictures and CD quality sound, all without having rely
on cable. Moreover they want to use satellites to provide rapid Internet
access and desktop video. McCaw's Teledesic System wants to use 840 satellites
aim to provide Internet access, networking capabilities and video conferencing
with equal ease to a Manhattan skyscraper. Set for year of 2002, the system
already has one big backer: Microsoft's Bill Gates. The risks are the technological
challenges and getting linking software to work. Much financing will also
be needed.
Picture Perfect TV
With the launch of Hughes's DirectTV in 1994, digital satellite TV
is the industry's first big hit (Schine and Elstrom, 62). If satellite
TV sounds like an exotic, high-priced way to receive a television signal,
then prepare for a shock. Systems and brand names is driving down the price
to some affordable level (Booth, 63-65). The company Murdoch is taking
on DirectTV in US, Latin America and Asia. The risks are that the three-year
lead could be tough to surmount. In Asia, Murdoch's StarTV has angered
Chinese officials by becoming an unproved western fare. Hughes's recent
3 billion is betting the ranch on satellites and Spaceway. The risk is
the DirectTV faces stiff competition, the chairman of Hughes Electronics
says, "the commercial satellites are driving our business" (Schine
and Elstrom, 64).
Pricey Phones
Many big companies want to put up competing satellite systems. Motorola
wants to offer global phones to business travelers with iridium. Waiting
in the wings are ventures that will provide high-speed Internet access
and video conferencing. The risks are that the iridium could get undercut
and demand is uncertain for other services. Schwarts is backing Globalstar,
which will "provide cheap phone service in the developing world"
(Schine and Elstrom, 66) Loral wants to expand skynet, a video distributor
acquired from AT&T, and plans to launch Cyber Star for Internet access.
The risks are that Globalstar's new technology means delays are likely,
while Cyber Star faces heavy competition. Because the phones are digital,
the satellite phone services will provide features such as voice mail,
paging, and caller ID that are now being introduced as PCS, personal communication
systems, on ground-based cellular. However while the satellite phones will
offer the same freedom as today's cell phones, they have got one big advantage:
The same phone will be useable around the globe, which means they are going
to offer one number, one phone, one bill, anywhere on the planet (Schine
and Elstrom, 65).
References
Booth, Stephen A. "Satellite TV Comes Down to Earth." Popular
Science. Nov. 1996: 63-66.
Schine Eric and Peter Elstrom. "The Satellite Biz Blasts Off."
Business Week. Jan.
1997: 62-68.