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Research Note 38 1996-97

Billions and billions of dollars in orbit: global links for mobile phones

Matthew James
Science, Technology, Environment and Resources Group


A New Era Begins

By the middle of 1997, the first of a new generation of mobile communications satellites will have been launched into low Earth orbit. By the end of the decade, some of these will offer individuals a global telephone service.

While users will be able to send and receive calls no matter where they are, they face a variety of handset types and capabilities as the systems become established. Telecommunications analysts do not expect all of the rival systems to survive in the long term. They argue that high costs for both handsets and use, poor voice quality and poor indoor penetration will hamper market expansion.

An aspect of concern to existing telecommunications carriers is that the new satellite systems may completely bypass existing ground networks, controls and charges. Some governments have acted to protect incumbent carriers while others intend to make no restrictions at all.

GEO vs LEO Satellites

Until recently, only satellites in high geostationary Earth orbits (GEOs) were available for communications links. Since they remain in the same position relative to ground stations, each satellite can relay signals to one-third of the globe. This is the basis of the Intelsat and Inmarsat fixed systems that have served most countries for the last three decades. But orbital slots are crowded, and GEO systems have other problems because of their height: they require high power for transmission and signal delay makes voice traffic, in particular, somewhat uncomfortable to users.

Such problems do not affect low Earth orbit satellites (LEOs). However, LEO satellites can only 'see' a smaller proportion of the ground as they rapidly move across it, so more satellites are needed to cover the globe and handset signals must pass from satellite to satellite as they orbit.

Nonetheless, there are a number of schemes to establish mobile telephone satellites in geostationary orbit, particularly to serve Africa, India and Asia. Among these are the Asia Pacific Mobile Telecommunications single spacecraft scheme, the Asia Cellular's Garuda two Satellite Scheme (under construction), and the Afro-Asian Satellite Communications two Agrani craft due for launch this year. They may offer thousands of simultaneous telephone calls from dual-mode, hand-held phones.

Carrier Strategies

Australia is to have an open market from July 1997, and the existing carriers Telstra, Optus, Vodafone and other parties are assessing their options with global systems. Vodafone has links through its British parent to the Globalstar system. Local service provider Spectrum Network Systems has a stake in the Ellipso project. Iridium has a South Pacific office in Sydney, and Telstra provides Inmarsat access.

While Iridium estimates the potential market for mobile users at anywhere from 5 to 15 million worldwide, best estimates for Australian usage seem rather small. By the year 2000, operating systems should provide some 3 000 voice circuits over Australia. By 2005, this may rise to 200 000 circuits, serving one million users.

Satellite access gateway franchises offer carriers one means of involvement. These connect the satellite network to the ground network and also involve service providers. However, some of the proposed systems do not regard Australia as an early market. A listing follows of many proposals.

Iridium

The Iridium satellite system is the most advanced so far and will involve a constellation of 66 spacecraft. Under a US$2.6 billion finance package, Iridium operators Motorola, Lockheed-Martin and others secured United States Federal Communications Commission (FCC) approval, but expect to need US$4.7 billion by 1999. For Australian users, Iridium should be compatible with the GSM phone standard, allowing one US$2 500 handset to access both local systems and satellites when operations begin in 1998.

Globalstar

Globalstar has raised most of the US$2 billion that it requires to launch in 1998 and 1999, and has received FCC approval. Loral, Qualcomm, Air Touch and Vodafone are major investors in a 48 satellite scheme. Globalstar GSM handsets will have two modes and cost from US$500 to $750.

Odyssey

Led by TRW and Teleglobe of Canada, Odyssey involves a US$2.5 billion contract for 12 satellites and ground control

facilities. Odyssey has FCC approval to utilise an intermediate circular orbit patented by TRW to begin in 2000. Cost of handsets may be US$500.

ICO-InmarsatP-Project 21

ICO Global Communications also proposes a medium earth orbit 10 satellite system worth US$2.8 billion. Hughes as co-investor with Inmarsat, has disputed TRW's patent claim. ICO handsets may cost US$1 000 each.

Constellation Communications

This 46 satellite Aries-ECCO system has been costed at US$1.7 billion. The FCC has refused to approve the scheme so far.

Ellipso

Mobile Communications Holdings proposes a US$850 million 16 satellite system. Handsets may cost US$800 or less, but the FCC has so far refused approval.

Broadband Systems

With backing from Microsoft, Teledesic emphasises data and Internet usage through a colossal 840 satellite system. Pending FCC approval, Teledesic aims to provide high capacity data circuits to uncabled areas, commencing in 2002. Other smaller data ventures include Astrolink, Galaxy Spaceway, GE*Star, SkyBridge, VoiceSpan, Morning Star, CyberStar and Sativod. Other types will surely follow.

Orbcomm

Orbital Sciences and Teleglobe Canada together operate Orbcomm's twin satellite system providing real-time messaging to users on the ground. Orbcomm plans 34 satellites in all.

Celsat

A proposed US$500 million system of three satellites is slated to begin in 2000.

Optus

Australia's Optus B3 satellite was the first in the world to offer a mobile service. This capability only covers the Australasian region. Optus has 25,000 users each with $6 000 ground units.

(See Research Note 22, 1996 for Asian Satellites Broadcasting PayTV to Australia).

 

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