Reader Forum: Will your next smart phone be a satellite phone?

Editor’s Note: Welcome to our weekly Reader Forum section. In an attempt to broaden our interaction with our readers we have created this forum for those with something meaningful to say to the wireless industry. We want to keep this as open as possible, but maintain some editorial control so as to keep it free of commercials or attacks. Please send along submissions for this section to our editors at:dmeyer@ardenmedia.comortford@ardenmedia.com.
More than 10-years ago the Bluetooth Special Interest Group unified leaders across telecommunications, computing, networking, industrial automation, and automotive industries with the mission to encourage and support research and development in Bluetooth technology. Back then, Bluetooth technology’s intended purpose was to be a wire replacement technology in order to rapidly transfer voice and data. Yet, over the last decade, the technology has evolved and is now recognized as one of the key wireless standards included across multiple consumer electronics standards – from cellular handsets to GPS devices.
But is there a new wireless standard “kid” on the block?
Some think satellite connectivity could evolve to be the next mainstream wireless standard embedded in gadgets, across the globe. Similar to Wi-Fi, Bluetooth and second-, third-, or even fourth-generation cellular technology, satellite is a complementary wireless standard that could be incorporated into tomorrow’s sophisticated gadgets. Yet it offers something none of those other wireless standards can deliver – a data pipe to enable a truly ubiquitous wireless connectivity option.
“Adding satellite into new wireless devices simply makes sense – people want to be connected when and where they want to – and satellite offers them that option,” said Daniel Longfield, senior analyst focused on satellite communications at Frost & Sullivan.
In fact, Frost & Sullivan conducted research within the past few years to determine the interest for a ubiquitous 4G wireless service – based on adding satellite connectivity into traditional mobile devices. The study focused on more than 2,000 respondents located in the United States, and evaluated consumer and business user attitudes and behaviors in order to understand the lifestyle or business-style to which ubiquitous coverage could be a benefit.
Frost & Sullivan evaluated usage scenarios and the impact on a current post-paid plan. The research showed that for an incremental monthly fee over their current post-paid plan, one quarter of the addressable consumer market and half of the addressable business market were interested in an integrated satellite-cellular mobility service – whereby primary, ground-based wireless connectivity is combined with the ability to connect to a satellite network for voice, data and messaging, when needed.
Consumer demand is somewhat muted in comparison to business users, at 25% for an incremental price premium, although overall consumer interest increases as the price point drops to price parity with existing post-paid plans. However, when looking at usage intentions, consumers reported they would most likely use a ubiquitous 4G wireless service on road trips (64%) followed by using this service when traveling to remote locations for hiking or other outdoor activities (59%). Business user intentions were most likely to use a 4G wireless service for business travel followed by recreational road trips, as this audience was most concerned with security when traveling on business by car.
The survey results indicate that opportunities exist to capture an even larger share of post-paid customers (and notably consumers) by either reducing the price premium, or by offering different feature packages to attract more price sensitive customers whose need for a ubiquitous service are great, but affordability is a deterrent to actual adoption.
Finally, Frost & Sullivan found that almost one-third of customers would use this service in addition to a current post-paid subscription and handset, suggesting even greater revenue potential from these customers.
Further research conducted by AT&T Inc. in their annual 2010 AT&T Business Continuity Study found businesses are stepping up their technology investment and efforts in disaster planning and business continuity programs despite the economy; and mobile devices are increasingly part of business continuity plans.
Coupling this research strongly indicates that satellite connectivity may one day soon be at the table with the other wireless standard big boys – as end-user desire for ever-present wireless service is high, and satellite is the only standard to bring ubiquitous wireless connectivity technology to the masses.
When actions speak louder than words
Currently, satellite companies based in the United States are driving this mission forward. These companies have initiated arrangements for satellite connectivity to be accepted as a standard in multiple devices by working with semiconductor companies – Qualcomm Inc. and Intel Corp./Infineon Technologies AG. Each are building a chipset to offer combined cellular and satellite radios in one handset; working toward available silicon in the next couple of years. In the case of Qualcomm, the company is working with multiple satellite companies to provide chipsets for the L- and S-spectrum bands. Their chips will allow an integration of satellite-cellular communications in those bands with the CDMA and CDMA2000 standards, adding to the potential for development of a small satellite phone integrated with existing CDMA cellular networks.
Interest from chipmakers combined with the willingness of cellular carriers to accept handoffs from satellite networks could guarantee satellite’s seat at the table, so-to-speak. And on Sept. 21, AT&T Mobility began to offer its new Satellite Augmented Mobile Service for enterprise, government and small business customers. The service is intended to make wireless communications easier and more convenient by having mobile coverage in remote locations or when the cellular network is unavailable. With its Satellite Augmented Mobile service, AT&T Mobility is offering the TerreStar Genus device, a dual-mode cellular-satellite smart phone offering a similar look-n-feel to conventional mobile devices but with one main difference: it offers a one-of-a-kind innovation to connect users to both terrestrial and satellite wireless networks.
With the development of integrated satellite-cellular chips and buy-in from the big wireless carriers – satellite connectivity as a standard becomes more realistic and acceptable.
Crossing the chasm
To infiltrate the mainstream and position satellite connectivity as a viable wireless networking standard, satellite communications companies – primarily driven by a subset of this group known as mobile satellite service operators – are focused on delivering satellite not as a primary communications backbone, but as a connectivity option to enable anywhere, anytime communications.
The data-pipe aspect of satellite communications highlights significant opportunities to deliver voice, video and data over new airwaves. Consumer and business users’ interest in ubiquitous wireless communications, coupled with novel device form factors, from the traditional smart phone-sized devoces to Internet dongles, netbooks, e-readers, and automotive dashboards embedded with the next generation of integrated satellite-cellular chipsets further increase the likelihood of satellite being seen as the next big wireless standard.
Longfield continued, “Yes, it is an ambitious goal to have satellite connectivity embedded as an everyday standard in mobile devices – but – not a far-fetched one. User demand and interest for always available wireless connections anywhere in the [United States] cannot be overlooked, and when that desire, need, and now opportunity is offered by today’s
satellite operators – this vision is a more likely reality.”