1. “Internet in the sky”
Presented By:
Abinas Mishra
Ankita Singh
Basukinath Dubey
Hemangi Parkeria
Rohit Khattar

2. AGENDA
 An Overview
 The Project
1) Technology & Advantages
2) Key Markets
3) Competitor Analysis
4) Advantages
5) Financial Feasibility
 Opportunities & Challenges
 Recommendation

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. THE PROJECT
Technology
 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. Fast Packet ISL
Uplink
Downlink
(1200 Mbps)
Earth Earth
INTERNET Station Station
Gateway
Terminal
2Mbps 64Mbps
PSTN
PC

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. 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. 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. ADVANTAGES
 High Quality of service.
 Bandwidth on demand.
 High elevation prevents rain fade.
 Wide coverage area.

10. Back of envelope financials
Fixed 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 costs
Installation, Maintenance & Billing
Third party training
Loss of assets /Depreciation
Contd..

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. Opportunities Challenges
• Large untapped markets • High entry barriers
• consumers of existing • High launching costs
service provider. • Billing & commissions
• Optimizing cost

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. CONCLUSION
• Teledesic had a good vision but it was not
financially feasible.