LEO MSS woes may push LEO broadband out of the skies (Satellite International, 02-25-00)
(Thanks to Phillips Telecon)
Jeff Vayda
The spectacular failure of LEO MSS projects to live up to expectations has also
relegated broadband LEO's to second priority for funding, according to Merrill
Lynch VP Tom Watts. But a GEO system, with its lower startup costs, and ability
to be taken global step-by-step, is more appealing than the upfront global
investment in a LEO system. Even though a LEO system is more cost-effective
than GEO if operating at capacity, in small markets - GEO becomes the choice.
Watts expects that once GEO systems have proven the market for broadband as
they come online beginning in 2001/2002, money will become available for the
riskier LEOs, but this causes significant delays. Among the LEO systems,
SkyBridge, led by Alcatel, seems to be proceeding farther than Teledesic. [But see
last Friday's story on Eagle River Investments folding ICO Global into the
Teledesic project.] However, both Alcatel and SkyBridge's key U.S. backer
Loral, are now working on the CyberStar GEO hybrid Ka/Ku-band venture. The
U.S. internet/data-via-satellite business in the next few years will become croded
with players like DirecTV, Echostar, Gilat-to-Home, iSky, Spaceway, CyberStar,
Astrolink and NetSat 28. (Not available on the web) |
