How Will Diagonalization Change Space Tech?
Nov 29, 2024
The satellite industry is undergoing a revolution with ST Engineering iDirect’s plans extending beyond their INTUITION ground system testing. The sector is on the cusp of experiencing a transformation like no other given the entry of new players such as OneWeb and Amazon and the horizontal integration of satellite players. These transitions have been compared with the Apple and Android system which focuses on the closed systems and the open ecosystems. The introduction of “diagonalization” by ST Engineering iDirect is innovative and disruptive, as it is designed to remove barriers of the vertical and horizontal model, thus increasing the level of integration between all participants in the industry. This novel approach aims at enhancing the interoperability standards while at the same time being in harmony with other telecommunication and technology domains.
The ST Engineering iDirect promo booth at SATELLITE Conference and Exhibition in Washington D.C. Credit: ST Engineering iDirect
In recent years, the satellite communications market has been through major restructuring with the incumbents having to respond to changing market dynamics and innovation. It has experienced a rising trend in investment, technology, and cooperation that has redefined the structure of the industry. These developments have presented problems and opportunities for the incumbent providers to adapt to a new business model and ways of working. The emergence of new market entrants have brought new ideas and fresh strategies into the market they have sparked the change across the whole sector.
Strategic Integration
The industry’s opinion on various orbits and standards has changed a lot, especially, ST Engineering iDirect’s CEO Don Claussen who urged to reconsider business models. The drawbacks of both vertically integrated and horizontal models were emerging to the forefront more and more often; the former focused on the issue of ownership and dominance rather than open integration, while the latter could sometimes be too rigid in their functioning. However, the gaps in the business strategies of the acquisitions were not closed, and Claussen’s advocacy of diagonal integration offered a new solution that would facilitate the link with telecommunications providers and wireless carriers. The approach stressed the fact that the various orbits should not be considered as rivals but rather as future networks will likely contain a mix of orbital solutions.
ST Engineering iDirect’s INTUITION promo. Credit: ST Engineering iDirect
This strategic change has come with a shift in perceptions of the industry players about cooperation and rivalry. Traditionally, companies have focussed on safeguarding their technologies and running relatively isolated systems and this model has evolved. Business entities are slowly starting to realize that the current satellite business environment cannot be conquered by a single entity and that compatibility is the key to success. It has also resulted in emergence of new cooperative structures between the earlier competing parties, arising out of the need to find new business models and markets.
Technological Advancement
The industry was characterized by a new trend in customers’ behavior and their desire to choose solutions offered by several vendors rather than focusing on a specific industry giant. Speaking on the same, the Senior Vice President of Engineering, Sridhar Kuppanna said that there is a clear trend towards standards based integration especially with the emergence of 5GNNT technology. Some of the difficulties experienced during the integration process included; roaming and the integration of support structures. Standards-based APIs and end-to-end orchestration were introduced as essential aspects that would help to integrate space and ground solutions efficiently. This technical evolution meant that existing assets had to be taken into account while at the same time building for future capacity.
Satellites are not only being developed in terms of the better hardware but have also been endowed with highly developed software solutions and networking. Satellite networks have benefited from the incorporation of artificial intelligence and machine learning in the way that these networks are managed and supported. They have facilitated better use of resources, increased the quality of service delivery, and increased reliability of networks. The commitment level of this industry in innovation has ensured that major advancements are recorded in areas such as beam forming, signal processing, and network optimization, opening up new opportunities for satellite communications.
Market Dynamics
The industry landscape has been significantly impacted by vertical strategies from companies like SpaceX and horizontal consolidations such as the SES/Intelsat and Viasat/Inmarsat mergers. These developments have created new challenges related to infrastructure management and interoperability. The concept of a “network of networks” has emerged as a critical framework for future development, emphasizing the importance of compatibility and seamless connectivity across different systems. Industry groups like DIFI, WAVE consortiums, and 3GPP standards have played vital roles in enabling diagonalization and cross-vendor interoperability.
ST Engineering iDirect HQ. Credit: Google
Market dynamics have been further complicated by evolving customer expectations and demands. Both enterprise and consumer markets are seeking more flexible, scalable, and cost-effective satellite communications solutions. This shift in demand has driven innovation in service delivery models and pricing structures. The industry has responded by developing new business models that better align with customer needs, including pay-per-use options and customizable service packages. These changes have created new opportunities for market growth while introducing additional complexity to the competitive landscape.
Future Direction
The transformation of the satellite industry encompasses not only technological advancements but also innovative, strategic new ideas and flexible approaches to service delivery. The comprehensive shift of focus towards telco value addition and network intelligence revealed a new paradigm. The idea of diagonalization was no longer just a buzzword within the satellite industry but actually signifying a complete overhaul of satellite industry strategies. This dynamic, transformative evolution was supposed to provide continuity in different orbits and networks and give the industry more opportunities for further development and new technologies.
The satellite industry experience is therefore a shift from the traditional operational models to the integrated and connected future. As a result of this transformation due to technology development and other market factors, new strategies of operation and provision of services have been required. As the sector develops further the role of standardization, interoperability and integration will grow, resulting in further enhanced SATCOM systems. This transformation will be successful by the extent to which the industry offers dependable, ubiquitous, and inexpensive connectivity solutions to the users internationally.
