Commercial Applications of Communications Satellite Technology
Authors: Dorfman Steven D. , Lim Wah L. 
Published: October 2003

Commercial communication satellites constitute the fastest growing segment of the global satellite market, including satellites for the military civilian government, and scientific applications. This rapid growth is driven by the development of new and more cost‐efficient satellite technologies and the demand for more telecommunications services worldwide.

Transmission of network, independent, and cable television programming to affiliates and cable headends will continue to be a dominant application of commercial satellites. Since 1980, satellite newsgathering has been an increasingly large user of satellite time because of the world's growing appetite for live TV coverage of breaking news. During the past 20 years, satellite technology has become a primary tool of newsgathering for television news organizations throughout the world because fiber connectivity is often difficult or impossible to arrange on short notice and from remote locations.

Direct broadcast satellites (DBS) are a worldwide phenomenon. Today, throughout the world, more than 62 million ground receivers measuring as little as 18 inches (45 centimeters) in diameter look at more than 60 high‐powered geostationary satellites that deliver direct‐to‐home (DTH) programming.

Interactive TV is another powerful commercial application made available by digital television technology. Viewers at home can participate in live programs and manipulate the broadcasts: Data transmission is big business. A team of World Trade Organization (WTO) economists had estimated that, by year‐end 2000, there will be more than 300 million Internet users worldwide and that electronic commerce will amount to a US $ 300 billion a year industry. Beyond this, 80% of all business‐to‐business transactions will be conducted through the Internet by 2002. VSAT (very small aperture terminal) networks can be used for a variety of purposes, including videoconferencing, employee and customer training, credit card authorization at the point of sale, new product introductions to marketing employees and retailers, inventory control, and electronic data interchange (EDI) for ordering merchandise from manufacturers and paying for it. There are more than 500,000 VSATs installed in the world, including those in underdeveloped nations where they may be used to provide remote villagers their first access to telephony.

It is projected that business‐to‐business electronic exchanges alone will constitute a US $1.1 trillion market worldwide by 2003. Also stimulating this growth will be the new, consumer‐oriented concept of “bandwidth on demand,” which enables users to pay only for the amount of satellite bandwidth they actually use.

As VSAT networks for rural telephony continue to be built throughout the world, new regional and global handheld systems for mobile satellite telephony are now being demonstrated. Proponents of mobile handheld satellite telephony have stated that data delivery by phone will be the next big commercial boom among consumers.

A new global mobile satellite telephony system started operations, and another project will start up early in 2001. Both the Globalstar and New ICO systems are described.

In the coming years, satellite antennas mounted on car roofs will become virtually omnipresent because of important and potentially life‐saving new technologies first introduced by the U.S. Department of Defense and now in full development by the commercial sector. For example, General Motors (GM) now equips many of its car models with a dual cellular/satellite communications system called OnStar™. As can be seen, new commercial satellite communications applications are developing rapidly, fueled by new technologies.