earth, space, satellites

Constellation vs Single Satellite who will win?

Satellite

Swarm VS. Ligado

In a previous article, I talked about Myriota and how you should put them on your radar for companies to potentially invest in. That advice is not changing, but that company is also Australian and may not be something you can invest in.  

In this article, we are going to talk about Swarm Technologies vs. Ligado. These two companies are both going into the Internet-of-Things(IoT) market and both using satellites to provide their services, so why am I comparing them? It may seem weird to compare Swarm, who is providing service worldwide vs. Ligado, who is focused on North America only. I think it is important to follow these business models and see which one works out better. 

Who is swarm?

“Founded in 2016, Swarm Technologies is a satellite company committed to providing accessible, low-cost global connectivity.” 

From Spacenews.com showing how the Swarm constellation will fly
Benefits

I picked Swarm out of all the other companies for a few reasons 

  1. They raised $25 million in funding
  2. They are producing the smallest satellites out of their competition 
  3. They have partnered with Momentus to start launching

In the commercial space world, it doesn’t always matter how cool of an idea you have if you don’t get sufficient funding, so for Swarm to get that much funding is a series A fundraiser means a lot. The reason that is a lot of money is that their satellites are so small they can do more with the money. Having such small satellites also makes them a very dynamic company. It is easier for them to replace and make more of their satellites when it is cheap and quick to produce them. Also, by signing a partnership with Momentus, they are signaling they are going to launch soon, and that is one of the biggest reasons to pay attention to Swarm. If a company hasn’t launched or isn’t launching soon, then they will be left in the dust. 

Negatives

A major concern is that they plan on launching 150 satellites for their constellation, but since their satellites are only 10cm x 10cmx 2.5cm, they can launch them in big batches and keep their costs low. 

Swarm is touting these features as benefits, but they do give me cause for concern. 

  1. The satellites have no propulsion system and have to ride the orbit. Not being able to control them remotely if the satellite runs into a problem, there is not much anyone can do about it. 
  2. They have to be in different orbital planes. An analogy would be some satellite constellations are like one string tied around a ball while Swarm has to have multiple strings tied at different angles around a ball. While doing that method provides max coverage it also makes it harder to do batch launches and adds costs to the launch for putting the satellites in specific planes.
So will Swarm be successful?

Like most commercial space companies, it is hard to tell, but they are on the right track. They have low-cost satellites, and they are launching soon. If their satellites can provide the quality service Swarm says they will, then they will be one to look out for and put on your radar.

Who is Ligado?

“Ligado and its partners are developing technical plans to leverage new 5G capabilities for flexible use of its greenfield spectrum and Ligado’s powerful SkyTerra 1 satellite, which is specifically designed to provide robust mobile connectivity to small, low-power devices throughout North America.”

Picture of the SkyTerra 1 Satellite from Ligado’s website
Benefits

Ligado is a classic model of commercial space using one big satellite to service one area. I am focusing on them for a few reasons.

  1. Their new satellite will be capable of 5G
  2. They have access to the L-band spectrum (more on that below)
  3. They have one area of focus, and that is North America
  4. They will be able to get big-time clients like Verizon and T-mobile almost immediately

Lots of companies are rushing to put up satellites that have 5G because major companies like Verizon are looking to have the edge over their competition. That means that Verizon will not care who they are getting service from only that the service works, and they can implement it. Once there are a bunch of 5G providers, then companies like Verizon will ask for lower prices but until then. The first to serve will make the most money. I like the fact that they are only focusing on North America as opposed to doing a global network. That allows them to focus their service and have the highest quality network in one area, giving them a better chance to be the number one in that area. Lots of companies like Swarm and Myriota are trying to cover the globe, potentially producing a lower quality service. The benefit of having one satellite is, there is a single point of failure, and once it is launched and in place, they will not have to replace it for 10-15 years. While Swarm may have to replace their satellites every 3-5 years. 

The reason I mention that they have access to the L-band is important is because that frequency is reserved for governments. The government uses that band for GPS and military satellites, so the fact that they got clearance to use it is a big advantage over their competitors. 

Negatives

Some of the downsides are that once the satellite is up there, they won’t be able to maker changes to it or update the hardware while Swarm can put updated satellites up anytime. Ligado is also only covering one landmass, meaning they are losing out on a lot of potential customers. Their initial costs are much higher and if they need to get customers immediately after launching. Finally, they are going into a market that is going to be very crowded, and if they cannot lower their price to meet competition, they may go out of business. 

Will Ligado be successful?

I think they will have a great chance at being successful. They have access to unique broadband, they are not spreading themselves to thin and they have the latest technology THAT PEOPLE WANT aka 5G. The trouble will be getting their satellite launched as soon as possible and having competitive prices.

Wrap up

Following these two companies is going to be like watching a case study unfold. By watching these companies, you will be able to see what business model is most effective, giving you an inclination to see what new companies you may want to invest in. Constellation companies can be a major risk, but it can have a major benefit if they can pull it off. But with most things in the commercial space industry, we can only wait and find out.