What does the recent launch of the TerraStar Satellite mean to you?

The TerraStar satellite was launched on July1, 2009. On the surface, it seems like an internet revolution in the respect that this monster-sized orbiter will provide voice, data, and video services over its entire footprint without regard to the geography and the topography of the earth-bound device using it. In particular, it is being hailed as a possible godsend to rural users. As one reads the releases, it will serve mobile devices which will resemble the very successful i-phone.

There are, however, several issues which seem not to be addressed at this point in time. Let’s take a look.

1.       What will the Distribution Company look like? Assuming that the satellite performs well – testing is expected to be completed this year – how will the technology be made available to the public? Will there be a retail-type outlet system which will make it easy for the general public to purchase a subscription? As an example, HughesNet has been operating for years through its own distribution system making it reasonable for anyone to contact them and purchase a system and subscription.

2.       What will the earth link devices look like? Right now, all you see are the promises of a mobile phone-like device. This is truly wonderful (depending on cost) but what will be made available for static home users? Will a dish-type antenna and modem be offered? Will they have a national network of professional installers within reasonable distance of your location?

3.       How reliable will the system be? At this point there is only one (admittedly huge) satellite in place. Is there a redundancy system in the future which will place multiple satellites in orbit to back up the present one?

4.       Remember the Motorola-backed Iridium system? It was promoted as the ultimate in cellular phone systems because it used satellites. However, it failed in spectacular manner due, in part, to a poor estimate of marketability. On the other hand, GlobalStar has been successful with its satellite phone, but they have targeted a niche market and have not tried to be all things to all people.

5.       What will happen inside a building? Satellite transmission – to a greater degree than cellular transmission – requires a clear view of the satellite. Buildings, trees, and tunnels stop it completely. It would take a very powerful signal from space and an equally powerful signal from your unit to penetrate walls. Woe to you if you have a basement office. You would need an external antenna but that seems to be at odds with a truly mobile device.

It should be pointed out that there are, at this time, several providers of satellite internet service to users located in remote and rural areas. The largest and oldest of these is HughesNet and others have joined the marketplace. These are all aimed at the static user (using a desktop or laptop computer) which is the typical primary internet device for the great majority of us. It will be wise to wait and see what the future brings for this new player who appears to be concerned with the mobile phone market. An interested party would be wise to investigate a more traditional provider before simply waiting for a new service which might not be available until sometime in 2010. After all, satellite internet is already established and functioning.