Satellite technologies are playing a growing role in providing broadband access in rural, sub-urban and even urban areas around the globe. Governments consider this option as an effective means to reduce the digital divide. In remote areas in particular, satellite service is a critical solution.

Geostationary satellites (GEO), orbiting at around 36,000 km above the earth’s surface, have traditionally been used to provide seamless communications network coverage. However, a constellation of low earth orbit (LEO) satellites, at an altitude of between 160 and 2,000 km, can provide continuous, global coverage offering lower latency services than GEO satellites. Next generation satellite systems are now using LEO constellations to provide reliable basic and advanced telecommunications services.

Several satellite operators are reaching agreements with other connectivity services providers to reach end-users at lower cost than can be achieved with traditional land-based telecommunications services. At the same time, mergers between traditional satellite players could produce a significant change in market structure resulting in multi-orbit business models.