LEOs to Focus on Latency-Dependent Niches to Compete With GEOs, NSR Says

To compete with geostationary orbit (GEO) operation prices on consumer broadband, low earth orbit (LEO) satellite operators are likely to focus heavily on service models, often partnering with local telcos and application-based service providers, Northern Sky Research's Gagan Agrawal blogged Wednesday. The analyst said LEOs have a better chance of success with applications that require latency and bandwidth density. NSR said edge caching, over-the-top video via satellite and maritime passenger applications could be big beneficiaries of LEO supply, though not at consumer broadband price points. The researcher said a challenge for LEOs is that GEOs and medium earth orbit satellites already serve such core target applications as broadband, backhaul, maritime and aeronautics and that all the capacity LEOs promise to bring to market could result in an even bigger price war than already expected.