The telecommunications landscape is rife with discussion, as the introduction of Apple’s iPhone 14 and the Tesla-backed Starlink satellite internet system kindles anticipation amongst consumers, eager for universal internet accessibility. Collaborative moves like the Optus-Starlink partnership further fan the flames of this discussion. However, will these innovations enhance or eclipse the current satellite communications systems?
Existing Satellite Communications: Unshakable Foundations
Beam Communications (ASX: BCC), a prominent name in the satellite technology sphere, stands firm in the belief that these fresh entrants might augment products like their acclaimed ZOLEO seamless satellite communicator solution. The company postulates that the contemporary tech buzz, intensified by social media discussions, is likely to accentuate the overall satellite communications (SatComm) market. A heightened consumer awareness regarding the merits of uninterrupted connectivity, particularly via trusted technologies in remote areas, is anticipated.
Spotlight on SatComm
Michael Capocchi, Beam Communication’s Managing Director, points out that the foray of major corporates into the satellite domain is transforming the perception of SatComms from a niche service to a mainstream necessity.
Despite the looming competitive threat, Capocchi notes, “We haven’t witnessed a decline in sales for products like ZOLEO. Surprisingly, inquiries have surged. While pinpointing a single catalyst is challenging, heightened market awareness about mobile satellite services might be fueling interest in our offerings. Nonetheless, in a rapidly evolving technological milieu, staying abreast of market evolutions is crucial to safeguard our competitive stance.”
Inherent Shortcomings of New Technologies
While new innovations promise a myriad of advantages, they are not without their pitfalls. Preliminary feedback from potential users highlights concerns about these technologies’ robustness and reliability, particularly in extreme weather conditions. The usage of geo-stationary satellites, as seen in many affordable options and the iPhone 14, can pose challenges in emergencies, where users might need to orient their devices towards a specific sky segment for connectivity.
Contrastingly, ZOLEO, a multi-award-winning device, relies on the Iridium low-orbit satellite constellation, ensuring connectivity virtually anywhere with a clear sky view. Beyond an SOS service, ZOLEO encapsulates features like chat messaging, weather updates, email, SMS, and location sharing. It’s noteworthy that while the iPhone 14’s SOS service has geographical restrictions, ZOLEO offers almost ubiquitous coverage.
Unrealised Promises of Mobile Satellite Internet Systems
The purported collaboration between mobile service providers and platforms like Starlink is more conceptual than concrete, with insiders speculating an 18-month timeline for fruition, contingent on successful launches and spectrum utilisation approvals. The limited geographical coverage of these nascent mobile satellite services further dampens their appeal.
Capocchi underscores the appeal of systems like ZOLEO, cherished for their reliability, especially for safety and uninterrupted communication. “Our clientele, spanning businesses and governments, lean towards ZOLEO due to its robust Iridium satellite network connectivity, facilitating seamless tracking and communication with multiple field ZOLEO users,” he adds.
Established Satellite Communication Leaders Retain Their Edge
With two decades under its belt, Beam Communications has solidified its reputation in the SatComm industry. Capocchi proudly states, “We’re an agile entity, having pioneered several globally recognised satellite devices over the past 20 years.”
The burgeoning competition in the SatComm sector, predicted to soar to nearly $9 billion by 2028 with a CAGR of 6.5%, indicates a burgeoning market. Beam Communications, despite being a smaller entity, is poised to leverage this growth, proving its mettle on the global stage. Their forthcoming quarterly might offer insights into their market capture capabilities.
Evolution, Not Extinction
While Apple and Starlink introduce novel facets to the telecommunications arena, they are unlikely to overshadow stalwarts like Beam Communications. Instead, they might catalyse market expansion, amplifying consumer awareness about satellite communication’s indispensability. As the narrative unfolds, it’s evident that proven technologies and established players will continue to hold their ground, even amidst waves of innovation.
