What the Orbits are
In commercial space, three orbits are generally used. Those orbits are Low Earth Orbit, Sun-Synchronous Orbit, and Geosynchronous orbit. Most people call them LEO, SSO, and GEO. They all serve different purposes, and if you are researching a company, it is important that you know what orbit they are using or plan to use.
Low Earth Orbit
NASA defines LEO as “platforms that orbit between 80 km and 2000 km.”
Basically, LEO is the lowest orbit usable orbits for satellites. At the LEO range, satellites will, for their most part keep their same orbit around the Earth.
Why companies use LEO
- Service from the satellite is faster
- Cheaper to make LEO satellites
- Cheaper to get satellites into LEO
- Easier to replace
When looking to invest in a company, figure out what orbit they are using. Once you learn that, see what company is making its satellite/s and what company will launch it/them. If there are contracts established, there is a great opportunity to invest in the supplier since they will have to make replacement satellites constantly. Also, look at investing the what launch company they are using since they will probably continually use that launcher for all of their satellites.
Sunsychronus Orbit
NASA Defines SSO as “Platform (satellite) that passes all latitudes at the same local solar time each day [through a combination of proper altitude and inclination]. Orbits lie within 20 degrees of a 90 degree inclination from the equator. To maintain this synchronicity, the orbital plane must rotate about 1 degree per day.”
Basically, SSO is an orbit within the LEO range that flies over the same piece of Earth at the same time every day. Mostly imaging companies use SSO as a way to see changes in an area over a given time. It is a more sophisticated way to do time-lapse photos.
All of the LEO benefits apply to the SSO benefits, but LEO satellites not in SSO cover the same area just at different times of the day while SSO satellites cover the same area at the same time of the day.
Geosynchronous orbit
NASA defines GEO as “Platform orbits with a revolution of exactly one day at an altitude of 35,786 km. Any orbit, which has a period equal to the Earth’s rotational period. The orbit’s eccentricity and inclination may not necessarily be zero. When the orbit is circular and the rotational period has zero inclination, the platform is considered to also be “geostationary.”
Basically, GEO satellites are really far away and look at one spot of the Earth non-stop. While SSO satellites see the same part of the Earth once a day, GEO looks at the same place 24/7.
Benefits of GEO
- Cover large areas of the Earth, it only takes 3-4 GEO sats to cover the Earth with a signal, while LEO will take 60+
- They are stationary, making them reliable
- Last longer, 15 year life span while LEO sats have a 5 year life span
GEO satellites are generally used by governments looking to surveil one are and satellite TV companies. The time it takes for a signal to get to the GEO sat and back is slow which is why companies are switching to LEO sats.
Why any of this matters
When looking to invest in a company, it is important to know what they are saying and what to expect. If a company says “we are launching a satellite into GEO” then you can expect that satellite to cost a lot of money and not be made and ready to launch for 5-10 years.
With the information above, look for companies that are going into LEO. LEO is where most of the new commercial activity is happening. For example, it is where SpaceX is setting up their Starlink constellation.
By knowing what obit a company is going to, you can predict what kind of services they are going to provide and how much money they are going to spend on a project—leading you to be able to make better investment decsions.