Tuesday, February 5, 2019

Column: How Satellites will Reshape Data Connectivity in 2019

by Eric Watko, EVP, Product Marketing & Strategy, SES Networks

Next-generation satellite services are set to transform data connectivity as we know it, opening up new markets and bringing the opportunities of the digital era to unconnected – and under-connected – industries and end-user populations around the world, to what would be roughly 3.7 billion people that were still offline by the end of 2018 according to the International Telecommunications Union.

This connectivity shift is already underway. In 2018, the satellite industry continued to advance its global reach and cloud-scale data networking capabilities with the launch or plans for additional satellites across multiple orbits (GEO, MEO and LEO), new partnerships to develop application-specific antennas to serve emerging customer edge terminals, and expansion into connectivity deals with major cloud providers – to name just a few milestones.


In addition, the satellite industry continues to take more of a leadership role in global network standards bodies and industry organizations – such as MEF, Telecom Infra Project (TIP) and the Linux Foundation Networking Fund, amongst others – to continue the drive to make satellite a seamless part of the global networking ecosystem.

As a result of the progress that’s been made, today satellite-enabled connectivity is delivered with fiber-like, cloud-optimized performance to aviation, energy, maritime, government, telecom service providers and mobile network operators around the world.

In the year ahead, we expect to see satellite become further entrenched as a standard connectivity option for customers, taking its rightful place alongside fiber and microwave technologies. As satellite connectivity moves into the mainstream, we will also begin to see more advanced services, capabilities and use cases emerge, and here are four that we expect to see take shape beginning in 2019:

Cloud connectivity and IoT – A recent IDC report estimates worldwide technology spending on IoT will reach $1.2 trillion by 2022. Satellite-enabled cloud and edge compute connectivity will allow organizations in remote or hard-to-reach locations monitor the health of their operations using IoT. This will open up the IoT opportunity for governments and entire vertical industries in areas where connectivity has traditionally been non-existent or poor – for example, industrial IoT services on oil rigs, mining sites and energy farms, to name a few – allowing them to send large amounts of data to the cloud or the edge for real-time processing and analytics. This kind of ubiquitous low-latency satellite connectivity will also present significant opportunities for cloud providers to tap into a wide range of market segments and organizations in developing and remote geographies looking to utilize IoT.

SD-WAN to fuel true multi-access connectivity – In 2018, we saw telecom service providers reap the benefits of global hybrid connectivity as they continue to seek cost-efficient ways to drive new revenue streams. This approach combines MEO and GEO satellite constellations with providers’ existing terrestrial connectivity services, allowing customers to deliver different levels of service availability and performance, based on specific application requirements – similar to application-aware routing. In 2019, we will begin to see SD-WAN capabilities emerge to ensure common services and flexible application- and performance-aware routing across this mix of multi-access services.

Accelerating 5G’s Global Footprint – As 5G news heats up in the wake of CES and ahead of Mobile World Congress, the satellite industry’s investments in both space and ground assets are being recognized as valuable assets to help accelerate 5G deployments worldwide. Using satellite’s unique “superpower” of global reach, the combination of multi-orbit constellations will enable MNOs to expand their 5G footprint cost-effectively into regions that are difficult or impossible to serve via their terrestrial assets. Look for the satellite industry players to work closely with each other as well as with leading mobile network operators and industry suppliers to facilitate the integration of satellite into 5G ahead of expected broader deployments in 2020.  Expect to see more technical and interoperability demos, such as the recent European Commission Horizon2020 SaT5G project.

Elevating the customer experience – In the year ahead, we expect to see customers move further along on the satellite connectivity adoption curve – taking a step beyond basic connectivity to a focus on customized services that elevate their customers’ experience, and we are already seeing the beginning stages of this evolution today. For example, many commercial aviation providers, as well as international cruise line operators, have already conquered basic satellite connectivity in the sky and at sea and are now considering how to optimize their operations and services with customized applications and a premium, differentiated experience. In contrast, government agencies are looking at how to use their service to evolve enterprise tools and applications, while still other market segments are just arriving at the basic connectivity stage. As these deployments continue to mature, we will begin to see this focus on the customer experience incorporated into all stages of the satellite connectivity adoption curve.

Once viewed as complex, expensive, and proprietary, the traditional role of satellite has been completely disrupted through investment, innovation and interoperability. Making satellite seamless is the primary goal of the industry’s network modernization strategy and complements our vision that integrates satellite-based connectivity services with the capabilities and advanced services of 5G networks and cloud platforms. The end result will be an automated, virtualized network service platform that allows customers and technology partners to onboard new applications and launch new, satellite-based managed services in an orchestrated, standards-based environment.

And in 2019, as satellite becomes increasingly seamless combined with its inherent global reach advantages, the industry looks for it to lead the charge to attain digital equality, open new markets and enable opportunities through innovative and affordable satellite-enabled managed data services. In doing so, the satellite industry will help our customers elevate the service experience and benefit end users all over the world.

Eric Watko leads product management, marketing, customer enablement and portfolio strategy for SES Networks. His experience in satellite communication networks and space-based processor technologies spans over 20 years, including with SES Networks, O3b, VT iDirect and Cisco.