2 minute read 25 Jan 2022
Satellite Wars: Episode X The Black Swan

Satellite Wars: Episode X The Black Swan

Authors
Gabriel De Maigret

EY Luxembourg Audit Assurance Partner

Over 14 years of experience in commercial and industrial companies and primarily in technology, media and Telecom sectors Gabriel is a qualified chartered accountant in Luxembourg since 2016.

Frederic Munch

EY Luxembourg Manager

2 minute read 25 Jan 2022
Related topics Telecommunications

Previously

Along time ago, in a galaxy not so far away, the first conquerors of the space adventure democratized satellites, rocking the world into modernity.

Television, telecommunication, internet, GPS, these space explorers have won over the golden age of modern times by establishing and overseeing this extraterrestrial signal which constitutes the basis of our society centered around information.

Being in the lead gives a significant advantage and as technologies improve, so does profitability.

The satellites initially sent between 500 and 2,000 kilometers above the Earth have been pushed into geostationary orbits at nearly 36,000 kilometers. The quality of service is improving, thus increasing the added value of these pioneer companies.

With the backing of public actors on Earth, an economic and technological empire is formed and locked in Space.

The Empire's line of defense is therefore clear. The colossal amount of money needed to invest in this sector as trust relationships that must be established with the state’s authorities erect insurmountable barriers for new entrants. The treasure is well defended.

Uberization

Sending large satellites far into space to offer excellent quality of service seems out of reach. Replacing them with a constellation of smaller satellites in a lower orbit is where the clash will take place.

Combining these factors with the ability to re-use launchers and drastically reducing costs, will undoubtably force a fight.

On one side, an economic sector that has managed to put into orbit nearly 2,700 satellites with an average price per launch of 100 million dollars.

On the other side, new joiners who announce that they could launch, at low altitude, more than 12,000 satellites with an average cost of 2 to 5 million dollars.

Less strong but countless and more flexible, the new competitors are waging a merciless struggle, attracting the attention of the public authorities thanks to their more affordable business model.

New breaches appear in the barrier that was supposed to protect the sector. While the new contestants are already rushing to replace the existing ones, out of nowhere, space discovers its “Black Swan”.

The Black Swan

Lurking in the confines of the low earth’s orbit, Tselina-D, was spinning a peaceful retirement. Its recent destruction has led to the scattering of more than 1500 pieces now gravitating at a speed ten times faster than that of the bullets of an assault rifle.

After a moment of amazement, the various actors of the space ecosystem re-assessed the extent of the danger of low altitude space debris.

Without touching anyone, these debris have impacted everyone, new competitors in the lead.

The cards have been reshuffled and a new round is about to begin. If victory without risk is triumph without glory, it goes without saying that here, the glory of the winners will be beyond belief.

Summary

Gabriel de Maigret and Frederic Munch explore what's next in the Space sector for Tech Magazine Silicon.

About this article

Authors
Gabriel De Maigret

EY Luxembourg Audit Assurance Partner

Over 14 years of experience in commercial and industrial companies and primarily in technology, media and Telecom sectors Gabriel is a qualified chartered accountant in Luxembourg since 2016.

Frederic Munch

EY Luxembourg Manager

Related topics Telecommunications