How private 5G, satellite internet services can cost dearly to companies

How expensive private 5G satellite internet services can be for businesses

New Delhi, Sept. 18 (SocialNews.XYZ) As companies like Elon Musk’s SpaceX, Hughes Communications India (along with ISRO) and Amazon ramp up their efforts to provide affordable internet services via Low Earth Orbit (LEO) satellites, the business model and pricing will become a challenge for scaling networks represent to a new report.

Some players are already testing internet services and there are signs that consumer devices with LEO connectivity are on the horizon.

“However, due to the high investment and user costs, the business model and pricing will pose a challenge for scaling networks, since LEO connectivity cannot fully serve as a replacement for terrestrial networks for all use cases where cost efficiency and energy consumption are important or overall performance”, according to ‘McKinsey Technology Trends Outlook 2022’.

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Satellite Internet provider Hughes Communications India last week announced the commercial launch of India’s first High Throughput Satellite (HTS) broadband service, operated by ISRO.

The service aims to provide high-speed broadband across the country, even in the most remote areas beyond the reach of terrestrial networks, to connect corporate and government networks.

As SpaceX abandoned its affordable internet project Starlink in India, Amazon has also ramped up efforts to roll out its fast and cheaper internet service called “Project Kuiper” in the country.

Regarding private 5G captive networks, the report states that such networks are a proven technology that many players are already benefiting from.

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Other technologies, such as the Internet of Things (IoT) and driverless transportation systems, fare much better when using high quality networks enabled by private 5G

“However, moving from 4G LTE to private 5G may not be cost-effective for all players; this would depend on a player’s technological ambitions and planned use cases,” the report pointed out.

The government has said it will conduct needs studies for the direct allocation of spectrum to companies with net assets in excess of Rs 100 crore willing to deploy private captive 5G networks.

Companies willing to set up a Captive Non-Public Network (CNPN) by sourcing spectrum directly from DoT are invited to participate in this exercise, according to the Department of Telecommunication (DoT).

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The guidelines state that companies wishing to set up CNPN can lease frequencies from telecom carriers or directly from DoT.

Source: IANS

How expensive private 5G satellite internet services can be for businesses

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