Opinion: Addressing Australia’s digital divide with low earth orbit satellites

Despite the spotlight on Australia’s digital divide in recent years, many regional and remote areas are still without high-speed, low-cost connectivity, which is essential to keep up with a world shifting rapidly online.

This greatly impacts the liveability, productivity and safety of these communities.

Low earth orbit (LEO) satellite communication is emerging as a solution to the problem, with the potential to offer these communities a reliable and cost-effective way to stay connected.

LEO satellites provide a much faster connection and lower latency than traditional satellite technology, making it an important technology for enterprises to revolutionise communications to people and things.

This is achieved because LEO satellites circle much closer to the Earth’s surface, which means they can provide high-speed broadband over very large areas of the planet, and deliver a much stronger signal. All without the crippling latency suffered by previous generations of high-altitude satellites.

These factors make a wide range of tasks possible. Direct satellite connection for small IoT devices can provide affordable global coverage on land or at sea, without involving SIMs, telco providers and roaming complications. This is perfect for mining, agriculture, environmental management and other industries across Australia.

It will also enable voice and data services from a satellite to an unmodified 4G smartphone to extend coverage to remote locations, as well as being ideal for streaming video and audio. Gartner predicts that 100 percent of smartphones will be capable of directly connecting to LEO satellites by 2028, compared to just 5 percent in 2022.

Another application we're already seeing is the use of LEO satellites by mobile providers in Japan to backhaul cells in remote areas instead of a fixed or microwave network connection. This should help remote parts of Australia, and subscribers won't need any special equipment, just their normal mobile phones.

Earlier this year, the Australian Government launched a LEO Satellite Working Group to examine the future role the technology will play in delivering telecommunications services around the country.

In particular, the impact it will have on First Nations people; supporting greater resilience and redundancy in emergency circumstances; and delivering universal telecommunications services.

Increase in available services

SpaceX Starlink is currently the only commercially operating LEO satellite services provider in Australia. Today, the company launches rockets every 11 days on average. Within a year, it could launch a rocket every day – and other private companies are also picking up the pace.

The Australian provider is expected to be joined shortly by OneWeb, which has signed agreements with several local carriers. The Australian Government expects the number of providers will grow over the next three years, and earlier this year NBN Co started exploring LEO connectivity solutions with providers.

The increasing scale and affordability of LEO satellites vastly expand the business opportunities in space. Companies can build inexpensive LEO satellites and set constellations numbering in the thousands into orbit.

As of July 2023, there were 30 LEO broadband and 20 IoT constellations either planned or operating. A key one to watch will be Amazon, who is planning to start launching its Kuiper constellation in mid-2024.

Technical limitations

The LEO satellite industry remains nascent, however, with a lot of evolution expected, so take a cautious approach to adopting early as it is an emergent technology in a complex market. Some technical issues need to be considered when determining its suitability.

LEO broadband performance can vary based on a range of factors, and current services are not always available globally – either because they are limited by regulators in some regions or because their satellite coverage is not yet complete.

Constellation owners have to continually launch new satellites to replenish their inventory – LEO satellites have a limited lifespan of approximately five years due to orbital decay and other factors. This is expensive, particularly as some of the proposed constellations would require their operators to launch several hundred satellites per month.

Industry standard technologies and protocols are increasingly being adopted, but terminal equipment – such as a fixed two-way communication dish – is still predominantly proprietary, so in some cases, you will be locked into a supplier. Most equipment is cumbersome and requires considerable power to operate.

However, this will change with LEO satellite services expected to be capable of delivering broadband to smartphones and satellite-enabled drones in the next few years.

Overall, it’s a good idea to start testing LEO broadband now, especially for remote location connectivity and as a potential replacement for traditional satellites. In the long term, LEO will also be an alternative to some fixed and cellular broadband services.

While there aren’t many options in Australia yet, look to buy LEO broadband services tactically and be prepared to switch providers if the service becomes uncompetitive or more suitable technology and pricing emerge.

Nick Jones is a Gartner distinguished vice president. His research focuses primarily on technology innovation, IoT, emerging technologies, and the role of the CTO.