The satellite industry's future is not just about the technology orbiting above us; it's about the complex web of partnerships and financial systems that enable global connectivity. While the industry is making strides with satellite networks and partnerships, a significant challenge remains: the outdated financial infrastructure that governs these collaborations.
The Problem: An Outdated Financial System
Despite the satellite industry's ambitions, a major roadblock persists - an antiquated financial system that hasn't evolved since 1991. This system, designed for traditional mobile commerce, is ill-equipped to handle the unique billing and settlement needs of satellite connectivity. As a result, mobile network operators (MNOs) are hesitant to invest, leading to a vicious cycle where limited investment results in outdated infrastructure and, consequently, limited returns.
A Productive Naivety
Interestingly, the satellite operators' lack of experience in mobile commerce can be a catalyst for innovation. Unburdened by decades of assumptions, they propose fresh commercial models, such as charging per satellite connection, which challenge the status quo. This naivety, however, is a double-edged sword. While it can spark creativity, it also leads to resistance from MNOs, who instinctively push back against unfamiliar models, despite having faced similar challenges in the past.
Learning from History
The industry's hesitation to adopt new billing and charging frameworks is reminiscent of the early days of mobile roaming. Back then, MNOs had to overcome significant challenges to establish interoperability and efficient settlement processes. Today, with over 900 Voice over LTE roaming agreements and a worldwide roaming market exceeding $80 billion, the benefits of those early investments are clear. The satellite industry can learn from this history and embrace the GSMA's Billing and Charging Evolution (BCE) framework, which supports the flexible charging models satellite connectivity demands.
The Cost of Hesitation
Industries that hesitate during pivotal moments often pay a price. Take the German automakers who underestimated the rise of electric vehicles. Their market dominance and reputation couldn't shield them from falling behind foreign competitors in EV manufacturing. Similarly, the satellite and telecommunications industries must act now to avoid a similar fate. The technology for reliable satellite voice calls from the open ocean already exists, but without a modern financial infrastructure, the industries will struggle to realize the full commercial potential of satellite communications.
A Call to Action
The future of satellite connectivity depends on the willingness of both industries to collaborate and adapt. By embracing innovative commercial models and adopting modern billing frameworks, they can unlock the full potential of satellite communications. The longer they hesitate, the more they risk being left behind in a rapidly evolving market.
Conclusion
The satellite industry's most expensive problem isn't in orbit; it's on the ground, where outdated financial systems hinder progress. By learning from history and embracing change, the industry can overcome this challenge and realize its vision of global connectivity.
