TMF Associates, a Mobile Satellite Services (MSS) consulting firm, today released its analysis of the proposed Skyterra/Inmarsat merger, and an updated profile of Iridium.
Tim Farrar, author of the research, commented, “Doubts have grown over the last year about whether the re-use of MSS spectrum in terrestrial networks, referred to as Ancillary Terrestrial Components or ATC, will ever happen.
“The proposed merger of Skyterra and Inmarsat will go a long way towards making the deployment of ATC in North America more feasible. However, wireless operators may not have any reason to focus on potential ATC spectrum acquisitions until the level of demand for 4G data services (such as Clearwire’s WiMAX deployment) is better understood, which will take until late 2010,” said Farrar.
While the core MSS business of operators like Iridium and Inmarsat remains strong, particular in maritime and aeronautical services, the level of demand for the integrated satellite-terrestrial services proposed by Skyterra is uncertain.
As Telephony Magazine explains, when the FCC issued its ATC rulings in 2003-2004, it opened new horizons for a number of players in the L and S Bands, including TerreStar Networks and MSV, and gave them the opportunity to turbo-charge their business plans.
In the S Band alone, 40 MHz of spectrum is available to licensees for combined terrestrial wireless and satellite service use. The ATC ruling allows these satellite spectrum holders to use their satellite phone spectrum on terrestrial radio towers. It provides the flexibility to offer services, similar to cellular, with better reach inside cars and buildings, using smaller phones.
TerreStar now plans to launch its TerreStar-1 satellite in the second quarter of next year. Earlier the company had planned on a Dec. 2008 to Feb. 2009 launch.
Both ICO and TerreStar have 20 MHz each in the MSS band (2.0/2.1 GHz). They’ll deliver spotbeam satphone services from geosynchronous space, supplemented with terrestrial repeaters.
Related satellite phone stories on DailyWireless include: TerreStar Roams with AT&T, Skyterra/MSV Get $500M, MSS: Battle Space, ICO Deploys 40 Foot Antenna, ICO Wants Its Mobile TV – via DVB-SH, Spot Beam Sats Multiply, Satphones: Merger Ahead?, Inmarsat + SkyTerra = Spectrum Sharing.
