Partnerships underpin satellite's push into the internet mainstream

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Partnerships underpin satellite's push into the internet mainstream

By CAROLINE GABRIEL

Published: 10 January, 2008

READ MORE: Satellite

One of the major hopes for satellite-based mobile services is the US' adoption of hybrid satellite/ terrestrial systems, which greatly improve the economics. One of the pioneers in using this technology, called ATC, is Mobile Satellite Ventures (MSV), which is now joining forces with L-Band operator Inmarsat, in a three-way deal also including MSV co-owner SkyTerra. They will collaborate to "resolve complex technical, regulatory and business issues, a move they believe will better enable each to offer L-band hybrid mobile satellite services in North America". In other words, MSV's partners will be able to take advantage of its advanced developments and its spectrum allocations for ATC, and MSV will gain much needed financial and R&D weight behind its efforts. It has been trialling WiMAX as a potential terrestrial component with Nortel and is building its ATC-enabled infrastructure with Boeing, but has not signed a major operator partner before (rival ICO is part of the Craig McCaw Empire and is trialling quad play applications with stable mate Clearwire as well as DVB-SH satellite mobile TV with Alcatel-Lucent.)

MSV is one of three companies that gained new MSS spectrum in 2GHz in 2006, specifically geared to hybrids (ICO and Terrestar are the others). Additionally, the FCC is set to allow another L-band licensee, Globalstar, to offer ATC in its own frequencies, stepping up the competitive challenge to MSV despite its technology head-start (it holds many of the patents on ATC systems), and to Inmarsat, which failed to gain specific ATC licenses and so needs to achieve the more difficult feat of supporting it in existing L-Band space. A combined effort will speed time to market and better enable these niche operators (in commercial mobile terms) to hold their heads up against the terrestrial wireless giants. For instance, Inmarsat will modify its North American operations to allow MSV to make more extensive use of L-Band spectrum.

"This agreement introduces a new era of cooperation among L-Band operators and, we believe, will help unlock the growing value of ATC technology on our now enhanced spectrum, enabling customers throughout North America to reap the benefits from greater flexibility and choices in air interface technology, coverage and equipment options," said Alexander Good, CEO of SkyTerra and vice chairman of MSV. "We have worked long and hard with Inmarsat to develop this agreement, which sets operational parameters in the L-band for existing satellite operations and lays the groundwork for future cooperation to address consumers' demand for next generation technology and services."

Meanwhile, while MSV gains valuable weight, Inmarsat needs an ATC play for its recent move into the phone services business (see Wireless Watch March 20 2006). Inmarsat has long stayed away from the commercial minefield of satellite phone services, but now believes that combining these with terrestrial wireless networks will finally deliver the business model that has eluded other ventures. Although it failed in its bid to win some of the new US spectrum for ATC offerings, it says it will offer voice and data phone services this year using its new BGAN broadband platform. By combining its new generation satellites with one or more telecoms partnerships, Inmarsat says it will get ATC services to market more quickly than its competitors and with shared costs and risks. Inmarsat's well respected CEO Andy Sukawaty also aims to steal a march on the main international satellite phone operators, Iridium and Globalstar of the US and Saudi Arabia's Thuraya, which have not yet upgraded their fleets.

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