How an innovative satellite company can become cash positive

An innovative satellite company aiming to provide internet access across the globe needs to have a sustainable business model to become cash positive. 

Satellite companies never became cash positive in the past because they haven’t reached the right markets. You need a charging system focused on how to collect money from your customers.

To solve that issue, we propose a business case solution: business partnerships with Mobile Operators. 

Further, you can read how your satellite company can become cash positive this year!

How an innovative satellite company become cash positive 1

The industry's challenges

From the communication sector to the medical sector and all others, many services offered today highly rely on the internet. This is, therefore, a good business venture for any satellite company. 

Even if you manage to provide high-speed internet across the globe, you still need to figure out a way to implement a charging system in order to generate profits.

When reviewing space businesses profits, the most work happens in communities down here as what is being produced in space, has its recipients on the ground. Mobile Operators could be your ground recipients because a business partnership with them could solve your existing challenges.

This business case is divided into two sections: the satellite industry problems and how to solve those problems by partnering with Mobile Operators.

  • Charging your customers
    ‣  Even if your services are in place and there are no technical problems, you still need to charge your users somehow.
    ‣  If your headquarters are US based and the customers are placed in an African village its gonna make it extremely difficult for you to run your business long-term.
  • Latency
    ‣  Satellite-to-consumer internet services mean there are two trips that must be done. A radio signal takes about 120 milliseconds to reach a geostationary satellite and then the same time to reach the ground station back.
    ‣ Satellite companies have to assure their users of low-latency internet in order to achieve profits.
  • Portable satellite internet
    ‣  Mobility is a requirement in the telecommunications industry. To achieve this goal an innovative satellite company has 2 possibilities: a satellite modem or a satellite phone.
    ‣  The downside is that users are highly unlikely to invest in such devices since smartphones are everywhere.
  • Satellite-to-consumer costs
    ‣  Any business out there has to be cash positive in order to survive and develop.
    ‣  Providing internet to your customers directly from the satellite is an expensive process. It is difficult to overcome the mobile operators that give affordable data plans or traditional ISP that already invested in their optic fiber networks.
  • Users platform
    ‣  Getting your business to run worldwide means millions of dollars in marketing investment.
    ‣  For a company that wishes to run by itself and make profits means having lots of customers willing to pay extra for the benefits that you bring.

The solution to overcome your obstacles

Trying to solve all the challenges by yourself means you have to spend a lot of money, time and resources. An innovative satellite company needs an appropriate business model in order to overcome all the existing obstacles and become cash positive. 

You need both a business solution and a suitable technical implementation to become cash positive. 

  • Create partnerships with Mobile Operators
    ✓ The solution to do all that is to create mutual benefit partnerships with mobile operators across the globe and to use their network and user database as “the means to an end”. If end-users can’t afford to pay the satellite internet service directly, mobile operators might be willing to pay for the satellite high-speed internet in order to expand their coverage to vast areas. 

The technical requirement - LTE eNodeB sofware-defined Radio

Since we are all serving a technical industry we must ensure we have the technical means to implement such a business model. 

In order to achieve your business plans of partner with mobile operators, you need to reduce the latency and offer coverage to the mobile operators. These things are easily solved by using an LTE eNodeB software-defined Radio to be the bridge between the satellite constellation and the users.

This full Linux-based eNodeB software Radio equipment gives you public IP without having to use optic fiber to reach through a mobile network all the way to the satellite. By using such equipment you ensure the mobile operators with better coverage and therefore more customers. 

  • The mobile operator charges the users for you
    ✓ The main problem of your business model is solved just like that. If you partner with local or national operators you will only charge them for the satellite internet you provide. You basically use the mobile operators as your own "regional sales department".
  • Reduced latency
    ✓ Having the data travel only one time towards the end-user makes it faster and the latency level reduced.
    ✓ The request comes from the mobile operator network that already has the subscriber information using Diameter.
    ✓ The LTE eNodeB will serve as a backhaul to help reduce the system’s response time and also use the resources well to ensure only one-time travel to the end-user.
  • Satellite internet available for smartphones
    ✓ The custom-made LTE eNodeB is providing Public IP for mobile phones and the mobility issue is solved.
    ✓ Our product will give them public IP from itself without the need of optic fiber to travel through the mobile network towards the satellite.
  • The costs are supported by the mobile operators
    ✓ Mobile operators have both the market-share and the money to pay and support such a partnership.
    ✓ The partnership is signed ahead and all the understandings are stated by both of you. This way your business is not risking any money and resources.
  • The operator comes with the user database
    ✓ Mobile networks also require internet supply to be able to offer connectivity to their clients. The communication sector equally requires a good connection to stay on the air and reach customers.
    ✓ The mobile operator already has its user database and their marketing engagement rates can be used as an asset.

Become cash positive

This business model ensures the mobile operators of CAPEX from partnering with you and you get OPEX in order to become cash positive. You can solve all your challenges with half the costs and its a mutual benefit partnership.

Contact us for business consultancy and details about the full Linux-based LTE eNodeB software-defined Radio. We have worked with over 20 mobile operators worldwide and we can provide both business and technical consultancy.