Good afternoon everyone! It's that time once again, and once again we're here with this week's installment of Eyes Turned Skyward. We've touched on several of the major commercial operators ITTL--ALS, Lockheed, EuropaSpace, and the Russians. This week, we're looking at the commercial market those launch vehicles serve--satellite communications--and how the growth of cheaper providers and past successes are leading people to speculate on new uses for the future. So, without further ado, let's get into position to beam down...
Eyes Turned Skyward, Part III: Post #11
To all practical purposes, the beginnings of commercial satellite communications can be dated quite precisely to the 6th of April, 1965, when the first satellite designed and built for Intelsat, the International Telecommunications Satellite Organization, was launched. While experiments had certainly taken place earlier, such as the well-known Telstar or the less-known Syncom, they had been just that, experiments, and not intended for real operational use. By contrast, Intelsat I--or Early Bird, as it was nicknamed--was designed to solve a real problem facing the eleven founding countries of what was at first known as the “Inter-Governmental Organization”: a serious lack of capacity in transoceanic communications. Before the development of the communications satellite, the only possible methods to transmit messages across oceans were the century-old technology of submarine cables or the more recently developed technology of radio, bypassing line-of-sight limitations by bouncing signals off of the ionosphere or the Moon.
While both were serviceable enough, both also had serious problems using the technology of the time. Building and laying submarine cables, especially lengthy submarine cables, is a slow, expensive business, it is difficult to maintain or upgrade a cable which may be miles underwater, and the copper-cored electrical wires then in use have a very limited transmission capacity; by way of example, by 1965 five different telephone cables had been run across the Atlantic Ocean, from stations in New Jersey and Newfoundland to France and the United Kingdom. Despite spending nearly a decade building the system, and despite many decades of experience with submarine telegraph cables, the five TAT lines could handle only about 500 simultaneous voice circuits, sharply limiting access to transatlantic telephony. Ionospheric or lunar relay radio had fewer problems with construction times, but suffered more from unpredictable day-to-day fluctuations in ionospheric conditions; one day one might be able to reliably connect halfway around the world, the next be hardly able to transmit even slightly farther than line-of-sight. Additionally, while cable capacities could theoretically be upgraded any amount by simply building more cables, and had been increasing on a per-cable basis (the third TAT had quadruple TAT-1’s capacity at laying), the amount of bandwidth available for radio transmissions was fixed by nature, and could never be expanded past a certain amount without having to deal with excessive noise.
From the point of view of the Intelsat nations, then, the capacities of the communications satellite were revolutionary. By itself, Early Bird was able to carry some 240 simultaneous voice circuits, increasing transatlantic telephone transmission capacity 50% in a single fell swoop, while by the end of 1967 three more second generation Intelsats--with the same capacity but twice the expected lifetime--had joined it in orbit, expanding Early Bird’s transatlantic service to transpacific and transindian routes as well. However, that was just the barest taste of what was to come, as the third-generation satellites, launched beginning in 1968, could carry 1,500 each--nearly four times as many as all transatlantic cables ever laid put together. Although in 1970 cable operators added a fifth cable, able to carry more than 800 voice circuits, Intelsat had already launched eight third-generation satellites, and in 1971 began launching a fourth generation--now able to carry 4,000 voice circuits and two television channels (while even the original Early Bird had been able to carry television signals, as shown by its usage in the broadcast Our World, doing so required tying up dedicated telephone circuits). By 1974, Intelsat’s network could carry up to 20,000 phone calls and five television channels simultaneously, an exponential increase on what had been possible only a few years before, and the beginning of the vast increase in international communications which would continue for the rest of the century.
While decried in later years as a bloated bureaucratic mire of a socialist organization, in truth Intelsat was responding quickly and with aplomb to what its customers wanted. It was just that its customers were not, at first, individual telephone users, or even large businesses, but instead entire national telephone networks: American Telephone and Telegraph, Post Office Telecommunications, Postes, Télégraphes et Téléphones, and more. As government-regulated monopolies or nationalized firms, their concerns were less those of individual customers, and more those of maintaining a solid, cheap to maintain network--certainly attributes that would benefit their customers, but not ones those same customers directly cared about. It was not until the deployment of the fourth-generation Intelsats, with their television transmission capabilities, that Intelsat started to really address large businesses directly, and even then their customer base was numerically dominated by large nationalized European television networks, with many of the same issues of corporate interest. At the same time, the number of countries involved in the Intelsat consortium had nearly octupled from its founding by its tenth anniversary, vastly increasing the number of “stakeholders,” as a later age would put it, and increasing the difficulty of deploying new systems and upgrading new technology. While the first seven years of Intelsat’s existence had seen the development and then deployment of four distinct generations of satellite, each a significant improvement over its predecessor, the next nine saw only an intermediate IVA generation, providing 50% more voice circuit capacity per satellite as its fourth-generation predecessor, and then a fifth generation, which doubled simultaneous call capacity again. While not insignificant upgrades, they paled in comparison to the rapid rate of improvement offered earlier in the decade.
With Intelsat at once a government-mandated monopoly and stagnating in its own success, real interest--and money--turned during the 1970s to using the technology developed for the now “solved” problem of transoceanic communications to address more specialized communications issues. Shipping firms, oil and gas corporations, and other companies whose business depended on spending long period of time away from fixed communications links were interested in smaller, more mobile earth stations, able to be mounted on a ship or easily moved by a truck to wherever communications might be needed. Large countries, like Canada, Australia, or Brazil, with huge areas of thinly populated land where building conventional wired or microwave links would be prohibitively difficult were interested in using satellites to bring modern telecommunications to their most remote populations. Other countries, like Indonesia or India, with little existing telecommunications infrastructure, saw satellites as a cheap method of bypassing the time-consuming and expensive need to build conventional links. There was growing interest from firms involved in nationwide or international business in dedicated satellite links, offering potentially improved security against hostile eavesdropping or spying attempts and increased speed and reliability compared to conventional communications. RCA was beginning to develop the first broadcast satellite television system, heralding a wave of copycats to come in the next decade. And, of course, there was always the American government, and especially the military, always interested in new, faster, and more reliable methods of linking together their ever-growing systems of airplanes, tanks, headquarters, satellites, and more into a single network.
All this activity, even if it was mostly on behalf of government customers, drove rapid growth in the satellite business. Major satellite construction firms, like Hughes, General Motors, Ford, and General Electric expanded their satellite production lines to accommodate rapidly growing demand, while launch vehicle manufacturers like McDonnell Douglas and Martin Marietta saw increased demand for their products. And, of course, a variety of new firms were founded to try to capitalize on this expanding business, both in building satellites and in providing satellite services. While attempts to break into the launch vehicle and satellite construction businesses were mostly unsuccessful, with the notable exception of American Launch Services, Inc. (which did not even attempt to address the communications business at the time), attempts to build new businesses addressing these new needs with new customers were far more rewarding. In the United States, especially, the chinks opening in AT&T’s long-held monopoly on long-distance communications opened a wealth of business opportunities for those cunning enough to seize them. By the mid-1980s, even Intelsat found itself suddenly faced with competition in the international market from American firms aiming at the most lucrative of satellite communication markets, while it itself had slowly taken aim at many of these new markets, offering specialized domestic and business services to new customers.
The rapid churn and bustle of the industry through the decade raised hopes that the last twenty five years of rapid growth in the business could continue virtually indefinitely. Although threatened by the recent deployment of high-capacity fiber optic links on domestic and international routes, which promised to erode the traditionally huge cost per unit capacity advantage satellites had over conventional links, satellite communications was still far cheaper to roll out nationwide than any cable network, and seemed to have great promise in broadcasting, as with NBC Satellite and its copycats, and in cheaply connecting burgeoning markets in developing countries. More than this, though, the revival of an idea from nearly the dawn of the space age promised a vast new market to manufacturers and launchers alike, totalling as many as several hundred satellites over the next several decades.
While the first serious proposal for satellite communication, by Clarke in the 1940s, was based on geostationary platforms, by the time came in the early 1960s to actually begin building such a network it faced competition from a newer AT&T proposal. Rather than large satellites in geostationary orbit, AT&T argued, a system of satellites based in low Earth orbit--like Telstar, a prototype funded and sponsored by AT&T--ought to be used for global satellite communications. While Telstar proved successful enough, AT&T’s monopoly position and the increased difficulty of coordinating and communicating with a system of rapidly-moving low Earth orbit satellites rather than fixed geostationary satellites, led their proposal to be bypassed in favor of Intelsat’s geostationary network, and the idea fell into dormancy. Until the late 1980s, the idea largely languished, with new entrants into the business focusing instead on geostationary satellites, which could provide similar coverage at a much smaller overall cost, or, for some users at high latitudes, Molniya orbits to provide improved coverage.
These advantages, though, came at a cost; more than twenty thousand miles from the Earth, and using relatively low-frequency radio bands, geostationary satellites required large antennas, several meters in diameter, to provide a two-way connection to earth stations. Although of little consequence for network backbone links, building-mounted antennas, or even ship- and aircraft-mounted stations, such a setup was obviously impractical for personal or small vehicle use. If, however, a network of low Earth orbit satellites--a constellation, in industry parlance--was built, with space terminals only a few hundred miles away from earth stations, a much smaller earth station could be built. So small, in fact, that it looked like a reasonable amount of technological development, well within the budget of major electronics and telecommunications firms, could build a mobile telephone handset that would actually be a very small satellite earth station. In one fell swoop, providers could offer global mobile coverage without the massive investments in fixed infrastructure that would be necessary with a conventional system, potentially mushrooming their customer base and profits. More, as was soon realized, if such a system was developed, it would offer another advantage: shorter latency. Ever since satellites had been introduced into the international communications market, customers had noticed irritating lag unavoidably introduced by the distance of the satellites from the Earth when they made calls routed over them. Satellites in low Earth orbit, although necessarily more sophisticated and greater in number, would have virtually no lag compared to those in geostationary orbit, and only slightly more than conventional ground-based links. While this would merely improve the quality of voice service, it could be critical to new and quickly growing telecommunications services, perhaps even not-yet invented ones, offering another market where an entrant could grow big, and one with little competition from any rival satellite firms.
Together, it seemed clear that the next big thing in satellite communications--indeed, in the entire field of telecommunications--would be building these constellations. Electronic giant Motorola was already investing heavily in its own in-house satellite telephone project, while a plethora of smaller firms and investors were following close behind. This momentum, in turn, was beginning to trickle down to the launch vehicle business, where the ongoing recession and end of the Cold War were winnowing the field of competitors, leaving only the strongest standing but limiting capacity. With a new age of brilliance on the horizon, though, investors soon forgot the last round of failures and once again began to look skyward.