Satellite phone market growing slowly

November 16, 2018 //By Jean-Pierre Joosting
Satellite phone market growing slowly
Analysts from market research firm Technavio in their latest report contend that the progression towards low-cost, satellite-based internet services is expected to drive growth in satellite phone market, which is predicted to achieve a CAGR of over 4% by 2023. The latest atellite phones also offer advantages over landline and cellular phones in many applications, another factor driving growth.

Currently, satellites in geostationary orbit which are positioned more than 22,000 miles above the earth's surface are used to provide satellite-based Internet services. However, the high latency due to the large distance makes satellite-based Internet inefficient for several applications such as video conferencing, live streaming, and gaming. Moreover, the high manufacturing and launching costs of the traditional large-size satellites makes satellite-based Internet services costly.

The latency of satellite-based Internet services can be reduced to nearly 20-30 milliseconds by using the constellations of nano and microsatellites which are placed in LEO at around 680 miles from the surface of the earth. The latency provided by this infrastructure is comparable to that provided by broadband Internet systems and is also less costly.

Satellite phones are mainly used in emergency situations when existing communication networks become inaccessible or non-functional. These phones can be used to communicate with other landline, cellular and satellite phones and co-ordinate rescue efforts during extreme weather conditions and natural and manmade disasters. The latest models of satellite phones are also smaller, lighter and provide better functionalities than ordinary cell phones. These advantages of satellite phones over landline and cellular phones are driving the growth of the market during the forecast period.

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