The satellite industry's most expensive problem isn't in orbit, it's on the ground. While AST SpaceMobile, SpaceX, and others are launching satellites into low Earth orbit, the real challenge lies in the ground-based infrastructure and processes that connect these two industries. The satellite and telecommunications industries are like two ships passing in the night, each with its own unique world view and processes, yet they must work together to expand global connectivity. The issue is that most mobile network operators (MNOs) still process payments for satellite partnerships through a financial system that dates back to 1991, and nobody agrees on how to replace it. This creates a Catch-22 situation where MNOs don't see a meaningful return on investment, and satellite operators are left with incompatible processes that can't be scaled. The result is that almost nothing goes live, and the potential for satellite communications to reach their commercial potential is stifled. What makes this particularly fascinating is that the solution to this problem lies in the history of mobile roaming. When mobile roaming was new, MNOs had no way to handle traffic across borders. Over time, they came together to create frameworks and standards that ensure interoperability across hundreds of networks and handle billions of dollars in settlements. This history should inform what happens next. The industry has to commit to the GSMA's Billing and Charging Evolution (BCE) framework, which already supports the flexible charging models that satellite connectivity requires. However, adoption has been slow partly because MNOs don't see enough near-term satellite revenue to justify a change. This is a critical juncture for the industry. The longer it takes to resolve this issue, the fewer companies will be around to do it. In my opinion, the satellite industry needs to take a page from the mobile industry's book and commit to the BCE framework. The future of satellite communications depends on it. The technology is already being tested, and within five years, a person will make a standard voice call over satellite from the open ocean on a regular phone. This is not just a technological achievement, but a cultural and economic one. The satellite industry has the opportunity to disrupt the telecommunications industry, but it must act now to avoid being left behind. From my perspective, the key to success lies in the ability to adapt and evolve. The satellite industry must be willing to challenge its assumptions and embrace new commercial models, such as charging per satellite connection. This may seem like a small step, but it could be the difference between success and failure in the long run. One thing that immediately stands out is that the satellite industry has the potential to revolutionize global connectivity, but it must overcome its current challenges to achieve this goal. What many people don't realize is that the satellite industry is at a crossroads. It has the opportunity to become a major player in the telecommunications industry, but it must act quickly to avoid being left behind. If you take a step back and think about it, the satellite industry has the potential to change the world. It can provide connectivity to remote areas, improve disaster response, and even enable space tourism. However, it must overcome its current challenges to achieve this potential. In conclusion, the satellite industry's most expensive problem isn't in orbit, it's on the ground. The industry must commit to the BCE framework and embrace new commercial models to overcome its current challenges and achieve its full potential. The future of satellite communications depends on it.
