Space-based internet services the next battleground for private industry

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  Quantumrun Foresight
• March 18, 2022

Insight summary

Imagine a world where high-speed internet reaches every corner of the globe, even the most remote regions. The race to build satellite networks in low earth orbit is not just about faster internet; it's about democratizing access, enhancing various industries like transportation and emergency services, and fostering new opportunities in education, healthcare, and remote work. From potential environmental impacts to shifts in labor dynamics and the need for new political agreements, this trend is poised to reshape society in multifaceted ways, making geography no longer a barrier to opportunity and growth.

Space-based internet context

Several private companies are racing to construct satellite networks that can provide broadband internet access to terrestrial stations and consumers. With these networks, broadband internet access will be available throughout the majority of the Earth’s surface and population. Both developing and developed countries may benefit from these new satellite-based internet providers. This trend can enhance connectivity, especially in remote areas, and foster economic growth by providing access to information and online services.

The new model of space-based internet infrastructure consists of “constellations” of thousands of satellites in low earth orbit (LEO). Traditional telecommunications satellites are launched into geostationary orbit at an altitude of approximately 35-36,000 km, incurring a lengthy delay in response due to the speed of light. In contrast, low earth orbit altitude is below 2,000 kilometers, allowing for applications that require low latency internet speeds, such as video calls. This approach can make internet access more responsive and suitable for real-time applications, bridging the gap between urban and rural areas.

Additionally, geostationary satellites require ground stations with large radio dishes to communicate with them, whereas LEO satellites only need small base stations that can be fixed to individual homes. This difference in technology can make the installation process more affordable and accessible to a broader range of consumers. By reducing the need for large and expensive equipment, the new satellite-based internet model can democratize access to high-speed internet. 

Disruptive impact 

With high-quality, reliable broadband delivered via space-based internet infrastructure, remote and underserved regions without fixed-line or cellular broadband internet infrastructure may gain access to reliable and high-speed internet. This trend can open up opportunities for remote work, healthcare, and education for these rural regions. Businesses that have avoided setting up shop in remote regions due to the lack of internet access may also consider using space-based internet to support their operations in these areas or hire remote workers from these areas as well. 

Several industries may also be affected by the new infrastructure. Transportation companies, especially those that operate ships and aircraft, may take advantage of internet connectivity while traveling over oceans and other low-coverage areas. Emergency services may use space-based internet to improve data transmission and reporting in remote areas. The telecommunications industry may face competition from satellite broadband, and as a result, they may accelerate improvements to their rollout of fixed-line internet access to remote regions to compete. Governments and regulatory bodies may need to adapt their policies to ensure fair competition and protect consumer interests in this rapidly changing landscape.

The long-term impact of space-based internet extends beyond mere connectivity. By enabling seamless communication in previously isolated regions, new cultural exchanges and social interactions become possible. Educational institutions can offer online courses to students in remote areas, breaking down barriers to quality education. Healthcare providers can conduct remote consultations and monitoring, improving healthcare accessibility. 

Implications of space-based internet infrastructure

Wider Implications of space-based internet infrastructure may include:

• The implementation of space-based internet infrastructure to provide fast, in-flight internet access for airline passengers, leading to enhanced passenger experience and potentially new revenue streams for airlines.


• The expansion of internet access to open up rural markets for consumer products that are only accessible through the Internet, leading to increased sales opportunities for businesses and greater product availability for rural consumers.


• The creation of space-based internet networks to provide employment opportunities for remote workers in remote regions with limited internet infrastructure, fostering economic growth and reducing regional disparities in job opportunities.


• The utilization of satellite broadband to deliver weather updates, crop price information, and other valuable data to farmers, leading to more informed decision-making and potentially higher agricultural productivity.


• The potential for governments to leverage space-based internet for improved disaster response coordination, leading to more efficient and effective emergency management in remote or hard-to-reach areas.


• The increased accessibility of online education and healthcare services in remote regions, leading to improved social welfare and reduced inequalities in access to essential services.


• The potential environmental impact of manufacturing and launching thousands of satellites, leading to increased scrutiny and potential regulation of the space industry to mitigate potential harm to the Earth's atmosphere.


• The shift in labor dynamics as remote work becomes more feasible in previously isolated regions, leading to a more distributed workforce and potential changes in urbanization patterns.


• The potential for new political challenges and international agreements related to the regulation and governance of space-based internet, leading to complex legal frameworks that balance the interests of different countries and private entities.

Questions to consider

• Do you think the current pricing model for space-based internet makes it accessible for rural users? 


• Astronomers believe that having thousands of satellites in LEO will affect future ground-based astronomy. Are their concerns warranted? Are private companies doing enough to mitigate their concerns?