Constellation Technologies & Operations wants to work with telecom operators to deliver 5G internet from space
The telecom industry is undergoing its greatest period of disruption since the telegraph
The telecom industry is undergoing its greatest period of disruption since the telegraph, as companies work to open up space as the next frontier for communications. French startup Constellation hopes to take part by repurposing 5G tech to provide a Starlink-like satellite broadband that uses telecoms’ existing assets.
The Business Model
Constellation's business model is built around providing high-speed Internet access to users through a constellation of satellites in very low ⇪ orbit× (VLEO).
The company will work directly with telecom operators to provide this service, with the operators paying for the service and sharing the revenue with Constellation.
This approach is different from traditional satellite internet services, which often require users to pay for a satellite dish and internet service provider. Constellation's model is more similar to traditional telecom services, where the operator is responsible for providing the internet access and the user only pays for the service.
Terrestrial 5G Spectrum
Constellation plans to repurpose part of the 5G spectrum allocated to telecom operators on the ground for its space communications service. This spectrum can be used to provide cellular signals to and from orbit, reducing latency and increasing performance rates.
By using 5G spectrum, Constellation can integrate with the design of its user terminals and satellite payloads mass-produced, cheap components that are already being produced for terrestrial communication networks. This will help drive down costs and increase the scalability of its service.
Satellite Form Factor
Constellation's satellite form factor is designed to operate in VLEO, which is about 375 kilometers above the Earth's surface. This altitude allows for faster data transfer rates and lower latency compared to traditional geostationary satellites.
The satellite form factor is also designed to be more compact and efficient, reducing the cost of launching and maintaining the satellites. Constellation's satellites will be capable of transmitting and receiving data at speeds of up to 150 Mbps downlink and 50 Mbps uplink.
User Terminals
Constellation's user terminals will be designed to work with its satellite communications service, providing users with a cost-effective way to access high-speed internet. The terminals will be small, lightweight, and easy to use, making them accessible to a wide range of users.
The user terminals will also be designed to work with existing 5G networks, allowing users to switch seamlessly between their cellular and satellite internet connections. This will provide users with a reliable and fast internet connection, regardless of their location.
Launch Plans
Constellation has announced plans to launch a hosted payload to orbit by June 2025, which will carry out an end-to-end test of its service. The company will then launch two prototype satellites by the end of 2026, with the aim of deploying production satellites the following year.
The launch of the first satellite will mark a significant milestone in the development of Constellation's space-based internet connectivity solution. The company's plans for launching a constellation of 1,500 satellites to provide global coverage are ambitious, but the potential rewards are significant.
Partnerships and Investment
Constellation has secured a €9.3 million ($10.2 million) seed round to accelerate its plans, which will be used to fund the development and launch of its satellites. The company has also partnered with Expansion Fund, Bpifrance, and an unnamed investor to support its growth plans.
Constellation's partnerships and investment will help the company to scale its operations and develop its technology, providing a strong foundation for its future growth and success.
Competitive Landscape
Constellation is entering a crowded market, with several other companies developing space-based internet connectivity solutions. However, Constellation's focus on collaboration with telecom operators and its use of terrestrial 5G spectrum sets it apart from the competition.
Constellation's CEO, Charles Delfieux, has stated that the company's goal is to provide a telco-friendly solution that allows operators to monetize their 5G networks and compete effectively with new entrants like SpaceX and Amazon's Kuiper.
By working with telecom operators and leveraging their expertise, Constellation can provide a high-quality internet connectivity service that is tailored to the needs of the operator and their customers. This approach will help the company to differentiate itself from competitors and establish a strong market presence.
Challenges and Opportunities
Constellation's plans are ambitious, and the company will face several challenges in the coming years. These include developing and launching a constellation of satellites, integrating with telecom operators, and providing a reliable and fast internet connection to users.
However, the opportunities presented by Constellation's technology and business model are significant. The company has the potential to provide universal internet access to millions of people worldwide, which could have a profound impact on global development and economic growth.
Constellation's innovation and leadership in the space-based internet connectivity market could also create new opportunities for growth and investment, as the company establishes itself as a major player in the industry.
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