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  1. 1. “Internet in the sky” Presented By: Abinas Mishra Ankita Singh Basukinath Dubey Hemangi Parkeria Rohit Khattar
  2. 2. AGENDA An Overview The Project 1) Technology & Advantages 2) Key Markets 3) Competitor Analysis 4) Advantages 5) Financial Feasibility Opportunities & Challenges Recommendation
  3. 3. OVERVIEW Founded in 1994 . Idea conceived by Craig McCaw.Purpose: Create a commercial broadband satellite constellation to bridge the digital divide.Key Stakeholders: Craig McCaw 21% Bill Gates 21% Motorola 26% Alwaleed 11% Boeing 4% Others 11%
  4. 4. THE PROJECTTechnology  288 LEO satellites in near polar orbits 12 orbital planes with 24 satellites each.  Altitude – 700 miles  1200 Mbps downlink; 800 T1 lines per satellite.  Satellite- satellite communication through fast packet switched ISLs.  Nine ground stations for telemetry & satellite control.  Lifetime – 10 years Contd…
  5. 5. Fast Packet ISL Uplink Downlink (1200 Mbps) Earth EarthINTERNET Station Station Gateway Terminal 2Mbps 64Mbps PSTN PC
  6. 6. KEY MARKETS Residential users of developed countries. Telephony and internet access in developing countries. Maritime and aviation industries. Multinational businesses with remote production and distribution facilities. Government : Telemedicine, Distance Learning, Military applications.
  7. 7. COMPETITOR ANALYSIS Skybridge • 80 LEO at 913 miles • Did not use ISL • Zero investment in R&D for inter-satellite links. Disadvantage: Extensive ground segment using bent pipe structures. Contd..
  8. 8. TECHNOLOGY COMPETITOR Geo-satellites • Less satellites required for coverage. • High latency (500ms) as compared to LEO (100ms). • Good for broadcast applications. HALO • Low latency. • Easy maintenance & upgrade. • Regulatory clearance to operate above major cities. Fiber Optics • High bandwidth & low latency • Deployment is time consuming & costly.
  9. 9. ADVANTAGES High Quality of service. Bandwidth on demand. High elevation prevents rain fade. Wide coverage area.
  10. 10. Back of envelope financialsFixed Cost Cost of satellites =$5.8bn Launching of satellites = $2.5bn Ground station cost = $90mn Terminal cost = $1000(Other costs like project cost are to be included too)Variable Costs/Operating costsInstallation, Maintenance & BillingThird party trainingLoss of assets /Depreciation Contd..
  11. 11.  One satellite capacity ≈ 800 T1 lines User to modem ratio = 10:1 Maximum customers per satellite = 8000 Revenue per customer per month =$1000 Expected revenue ≈ 8000x12x1000 = $96mn
  12. 12. Opportunities Challenges• Large untapped markets • High entry barriers• consumers of existing • High launching costs service provider. • Billing & commissions • Optimizing cost
  13. 13. RECOMENDATION Bring in more technological partners who can help in making the system efficient ,affordable & mutually beneficial for both. Create a target oriented commission model to increase the market share. Actively lobby with various government agencies & key investors.
  14. 14. CONCLUSION• Teledesic had a good vision but it was not financially feasible.