Are Apple and Starlink a benefit or threat to companies like Beam Communications?

Local telecommunications users are currently debating the benefits or potential issues related to new mobile phone and satellite internet connection offerings.

The recent release of Apple’s iPhone 14 and the Tesla-backed Starlink have raised hopes with some public users that they will now have access to easy global internet coverage.

The matter has been further highlighted by the recent announcement of a partnership between Optus and Starlink.

There are also suggestions that the SOS satellite communications facility on the iPhone 14 and Starlink’s recently released satellite internet systems will impact the sentiment surrounding the proven and advanced satellite communications systems already in the marketplace.

But is the mobile phone-satellite internet offering all that it is cracked up to be?

Proven technology remains critical

Leading local satellite technology specialist, Beam Communications (ASX: BCC), believes that the introduction of these non-traditional offerings may actually benefit and support products such as the proven and popular ZOLEO seamless satellite communicator solution.

In fact, Beam believes that the new technology and associated marketing and online social media discussions are more likely to help grow the overall satellite communications (SatComm) market with consumers becoming even more aware of the advantages of being always connected, especially via proven technologies when moving in and out of remote locations.

New moves highlighting SatComms benefits

Beam Communication managing director, Michael Capocchi, says the entry of a number of high-profile companies into the satellite sector is helping to take SatComms out of the shadows of being seen as a niche offering and into mainstream thinking.

“We are cognisant of the competitive threat from new technologies, but we have yet to see a drop in sales for ZOLEO or our other mobile satellite solutions,” he said.

“In fact, the level of enquiries has gone up recently. I can’t say this is driven by any one factor, but I suspect that the growing market awareness about the advantages of mobile satellite services may be one of the drivers behind the growing interest in our innovations.”

“Having said that, technology is constantly evolving, and we always have to keep a keen eye on market developments to ensure we retain our competitive edge.”

Non-proven offerings have risks

Potential users of new mobile phone and satellite internet technologies have already identified a number of issues which may make them less suitable in comparison to proven specialist satellite communications providers.

For example, the comparative lack of robustness and a susceptibility for the equipment’s battery power to be affected by hot and cold weather, has been identified as potential issues for mobile phone users looking for remote area support.

There may also be issues with a mobile phone’s ability to connect to satellites in rugged and remote locations as many of the cheaper options and the iPhone 14 use geo-stationary satellites. This could be a major problem in an emergency situation where users have to point their devices to a specific part of the sky to get a connection.

In comparison, the multi award winning ZOLEO device uses the Iridium low-orbit satellite constellation, which provides connection from just about anywhere on earth, as long as you can see a part of the sky.

ZOLEO not only provides a one-button SOS service, it also has chat messaging, weather, email, SMS and location share capabilities, which can be automated or manually triggered.

The iPhone 14’s SOS offering also only works in selected countries, while solutions like ZOLEO work just about everywhere.

No known entry schedule for new satellite internet system

New mobile satellite internet systems have also been identified as having inherit issues.

Most notably the proposed connection between mobile phone service providers and systems such as Starlink are not a reality today, with suggestions it may be at least another 18 months or so before the connectivity is even available, assuming everything went to plan with launches and approvals for use of the spectrum.

The new mobile satellite offerings also only work in select countries and do not offer “pole-to-pole” coverage.

Mr Capocchi says users of systems like ZOLEO and Beam’s other mobile satellite solutions are particularly attracted to their more robust and dependable service for personal security and keeping in constant contact, particularly for OH&S reasons.

He said business and government customers are more inclined to use ZOLEO as it provides a a robust solution on the Iridium satellite network, offering pole to pole coverage with high signal penetration and easily allows a dedicated device to be used to monitor, track, manage and communicate with multiple ZOLEO users in the field.

Most notably, serious users are also identifying with specialist and proven companies in the SatComm field.

“Beam has been around for over 20 years and we are a nimble company. Over the course of two decades, we have successfully developed and commercialised several world-first satellite devices, which are sold in Australia and around the world,” Mr Capocchi said.

It is no wonder there is growing competition in the SatComm field which is forecast to be worth almost $9 billion by 2028, growing at a CAGR of 6.5%. Small players like Beam have a chance to show it can punch above its weight in the global arena, the upcoming quarterly from Beam may show hints of its ability to capture the market.