Nov 18

Nov 18 OneWeb – Low Earth Orbit, High-Speed Satellite Broadband Service

A-CAM II, Broadband, Broadband Deployment, Satellite, Universal Service

November 16, 2019 – I admit it. For a long time now, I’ve been a critic of satellite broadband service. It’s slow. It’s clunky. The monthly price is way too high for the quality of service received by subscribers. But apparently all of that could change in just a few years. That’s right. There are a few companies that are promising a very different future for satellite broadband. One of them is OneWeb.

OneWeb, which started as WorldVu Satellites in 2012, is a satellite communications provider that plans to provide high-speed Internet access to the entire world using a constellation of satellites placed in Low Earth Orbit – 745 miles above the earth’s surface.[1]

In July 2019, OneWeb reported the tests of six of its LEO satellites – download speeds of 400 Mbps with latency under 40 milliseconds, which enabled the fastest real-time video streaming in Full HD from Space. OneWeb launched its first six satellites on February 28, 2019.[2]

OneWeb will initially launch and operate 650 satellites during the first phase of its network, and plans to ultimately have up to 1,980 satellites in its LEO network. The satellites launched during the first phase will provide global coverage, while additional satellites will be focused on adding capacity to meet growing customer demands. OneWeb expects to begin delivering partial service as early as 2020.[3]

LEO satellites revolve above the earth at an altitude between 99 to 1,200 miles. Due to their placement, OneWeb’s LEO satellite constellation will provide service at speeds that are much faster than other satellite service, and with much lower latency. For example, satellites in geosynchronous orbit typically experience latency of 600 milliseconds and greater. They sit roughly 22,000 miles above the Earth’s surface, and are geostationary because they move at the same angular velocity as the Earth and orbit along a path parallel to Earth’s rotation, providing coverage to a specific area.

The overlapping orbits of the satellites in OneWeb’s constellation will allow for worldwide coverage. OneWeb expects its service to be competitive with many forms of terrestrial wired and wireless broadband services. In addition to probably providing service to subscribers living in areas that lack broadband, OneWeb expects its service to be a solution for 5G backhaul.

OneWeb’s satellites will communicate with Earth via the Ka and Ku spectrum bands. The Ka-band will be used for communication between the Ground Network (which connects the OneWeb system to the Internet) and the satellites; while the Ku band will be used for communication between the satellites and the user terminals that will deliver Internet connectivity to consumers.

Like other satellite broadband services, OneWeb’s service will require subscribers to purchase a proprietary equipment – a OneWeb User Terminal (UT), which consists of a satellite antenna, a receiver and a customer network exchange (CNX) unit. The CNX connects the UT to the customer’s network which in turn connects to end-user devices including laptops, smartphones, sensors, and other connected devices. Prices subscribers will pay for OneWeb’s equipment have not yet been disclosed.

OneWeb’s Potential Impact On Rural Broadband Providers That Receive Universal Service Funding

What impact could OneWeb’s service, and that of SpaceX, have on rural broadband providers that receive universal service funding? Well, here are a few possibilities that I’ve heard people discuss.

If OneWeb’s LEO constellation had been up and running a few years ago, it could have participated in the Connect America Fund Phase II auction as a low latency bidder, and based on the 400 Mbps speeds reported from OneWeb’s July test, placed bids in the first three CAF II auction tiers – Minimum (10/1 Mbps), Baseline (25/3 Mbps), and Above Baseline (100/20 Mbps). It’s worth noting a geostationary satellite service provider – Viasat – won $122.5 million in CAF II auction support in 20 states. Viasat was also designated as in ETC in these areas.[4] Following the “success” of the CAF II auction, the FCC now loves reverse auctions; they are here to stay. If OneWeb’s service ultimately lives up to the hype, it could have a major impact on future universal service auctions.

Here’s another potential universal service-related impact produced by a constellation of LEO satellites providing high-speed Internet access – competitive overlap. In a 2011 order, the FCC adopted a rule eliminating high-cost universal service support in rate-of-return ILEC study areas where an unsubsidized competitor or a combination of unsubsidized competitors offer voice and broadband services meeting the FCC’s service obligations throughout the study area.[5] Again, if OneWeb’s service ultimately lives up to the hype, then the entire U.S. could be covered by a single unsubsidized competitor. Of course, it’s still very doubtful that OneWeb’s service could meet the FCC’s monthly usage requirement and the monthly cost of service limitation.

Want to learn more about OneWeb? Check out this YouTube video – How OneWeb’s Connectivity Works: https://www.youtube.com/watch?v=REzA_SYInvc.

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[1] Rob Pegoraro, OneWeb Wants To Blanket The Planet In High-Speed Satellite Broadband, Fast Company (Nov. 7, 2019), https://www.fastcompany.com/90427043/oneweb-wants-to-blanket-the-planet-in-high-speed-satellite-broadband.

[2] OneWeb Makes History as First Launch Mission is Successful, Press Release (Feb. 28, 2019), https://www.oneweb.world/media-center/oneweb-makes-history-as-first-launch-mission-is-a-success.

[3] OneWeb’s Satellites Deliver Real-Time HD Streaming from Space, Press Release (July 16, 2019), https://www.oneweb.world/media-center/onewebs-satellites-deliver-real-time-hd-streaming-from-space.

[4] See e.g., Wireline Competition Bureau Seeks Comment On Petitions For Designation As An Eligible Telecommunications Carrier For The Purpose Of Becoming Eligible To Receive Connect America Fund Phase II Auction Support, WC Docket No. 09-197, Order, FCC 19-925 (Sep. 18, 2019).

[5] Connect America Fund et al., WC Docket No. 10-90 et al., Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161, ¶¶280-84 (Nov. 18, 2011), aff’d, In re: FCC 11-161, 753 F.3d 1015 (10th Cir. 2014) (USF/ICC Transformation Order). The Commission defined an unsubsidized competitor as “a facilities-based provider of residential fixed voice and broadband service that does not receive high-cost support.” Id. at ¶¶103-104. See also 47 C.F.R. § 54.5.