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Japan’s SoftBank Invests $1B in Satellite Startup OneWeb

72 points by fmihaila 10y ago

kilroy123 10y ago
When I first read about OneWeb (2 years ago?) I figured it would be vaporware. However, things keep looking more and more promising. I think these guys are finally going to open the door to having real mobile internet anywhere in the world.
- otoburb 10y ago
  I believe SpaceX is also gunning for a similar satellite constellation for internet service[1]. The more serious players in this space, the better (no pun intended). [1] https://en.wikipedia.org/wiki/SpaceX_satellite_constellation https://en.wikipedia.org/wiki/SpaceX_satellite_constellation
sethbannon 10y ago
There are currently 4 billion people on earth with no access to the internet whatsoever [1]. If that's not a massive problem that also represents a massive business opportunity, I don't know what is. 1: https://www.weforum.org/agenda/2016/05/4-billion-people-still-don-t-have-internet-access-here-s-how-to-connect-them https://www.weforum.org/agenda/2016/05/4-billion-people-stil...
- wahern 10y ago
  If they don't have internet access, they probably don't have much disposable income. Also, those 4 billion people are spread across diverse legal jurisdictions, not to mention diverse geographic, linguistic, and economic regions. I agree it's a massive problem, and I don't doubt there are business opportunities. I just question how massive are those opportunities. It's like shale oil--there's tons of it, but it's only profitable to extract under the right circumstances.
  - nkkar 10y ago
    I suppose it depends on your investment goals, profile, etc. If you hold the general thesis that "the future" will see continued "progress", increased living standards & more consumers, then it's probably a good bet. If that timeline looks like, say, 50 years (no, I'm not convinced people invest on this kind of timeline, those profits may be too far out, but banks, ...maybe?), then a billion today may be a worldwide monopoly tomorrow. Maybe?
    - wahern 10y ago
      The company that launched the original Iridium constellation went bankrupt one year (1999) after the constellation went live (1998). Did they have foresight? Absolutely. Did they successfully create a new market? Yes. Did they hold an effective monopoly? Yes. Was their product and service a technological success? Clearly, as it's still used today. Did they make money? No, not even close. Theirs was the largest U.S. bankruptcy at the time. Yes, there may be tremendous opportunity. But there's also tremendous risk. Timing and strategy are everything, and nobody has a crystal ball for those details even when the big picture is a certainty.
  - intrasight 10y ago
    There are also millions of wealthy people who go places (even not far from their homes) where there is no internet access. Remember that business is about filling the area under the demand curve. I'd say that "internet everywhere" is a massive opportunity.
    - wahern 10y ago
      A fair point. But there's a difference between a person not having internet access and a place not having internet access. You'd be surprised at the far flung locales that still have internet cafes and WiFi at hotels. The density and quality of internet access in poorer areas is already going to be a function of where wealthy people travel. Also, you have to correctly judge the cost of service. Demand for internet access is much more elastic than, say, demand for a cure for cancer. The lesson from the Iridium constellation is that even wealthy people aren't necessarily willing to pay as much as needed, or as often as needed, to recoup investments. Iridium succeeded but the original company went bankrupt shortly after starting service.
irq-1 10y ago
I suppose connection to this or the SpaceX satellite system will be the new short-wave radio -- borderless and uncontrollable by governments.
- candiodari 10y ago
  Uncontrollable by governments ? Why ? Easy to disrupt the frequency and if you're following the law you need a frequency license in the first place. If you don't get one, they have a good reason to disrupt you even if that's the only thing you're doing wrong.
  - pdabbadabba 10y ago
    That's all true. But isn't that all true of short-wave radio as well?
ChuckMcM 10y ago
1996[1] to 2016 which puts it 20 years before its time (maybe). Given solar cells and battery tech an airplane at 100K feet makes a lot more sense and seems to have much easier maintenance mechanisms (land the plane periodically). [1] https://en.wikipedia.org/wiki/Teledesic https://en.wikipedia.org/wiki/Teledesic
- manarth 10y ago
  easier maintenance mechanisms It might cost more to put into orbit than to put up in a plane, but once there, satellites don't tend to need maintenance.

72 points by fmihaila 10y ago

When I first read about OneWeb (2 years ago?) I figured it would be vaporware. However, things keep looking more and more promising. I think these guys are finally going to open the door to having real mobile internet anywhere in the world.

otoburb 10y ago
I believe SpaceX is also gunning for a similar satellite constellation for internet service[1]. The more serious players in this space, the better (no pun intended). [1] https://en.wikipedia.org/wiki/SpaceX_satellite_constellation https://en.wikipedia.org/wiki/SpaceX_satellite_constellation

sethbannon 10y ago

There are currently 4 billion people on earth with no access to the internet whatsoever [1]. If that's not a massive problem that also represents a massive business opportunity, I don't know what is. 1: https://www.weforum.org/agenda/2016/05/4-billion-people-still-don-t-have-internet-access-here-s-how-to-connect-them https://www.weforum.org/agenda/2016/05/4-billion-people-stil...

wahern 10y ago
If they don't have internet access, they probably don't have much disposable income. Also, those 4 billion people are spread across diverse legal jurisdictions, not to mention diverse geographic, linguistic, and economic regions. I agree it's a massive problem, and I don't doubt there are business opportunities. I just question how massive are those opportunities. It's like shale oil--there's tons of it, but it's only profitable to extract under the right circumstances.
- nkkar 10y ago
  I suppose it depends on your investment goals, profile, etc. If you hold the general thesis that "the future" will see continued "progress", increased living standards & more consumers, then it's probably a good bet. If that timeline looks like, say, 50 years (no, I'm not convinced people invest on this kind of timeline, those profits may be too far out, but banks, ...maybe?), then a billion today may be a worldwide monopoly tomorrow. Maybe?
  - wahern 10y ago
    The company that launched the original Iridium constellation went bankrupt one year (1999) after the constellation went live (1998). Did they have foresight? Absolutely. Did they successfully create a new market? Yes. Did they hold an effective monopoly? Yes. Was their product and service a technological success? Clearly, as it's still used today. Did they make money? No, not even close. Theirs was the largest U.S. bankruptcy at the time. Yes, there may be tremendous opportunity. But there's also tremendous risk. Timing and strategy are everything, and nobody has a crystal ball for those details even when the big picture is a certainty.
- intrasight 10y ago
  There are also millions of wealthy people who go places (even not far from their homes) where there is no internet access. Remember that business is about filling the area under the demand curve. I'd say that "internet everywhere" is a massive opportunity.
  - wahern 10y ago
    A fair point. But there's a difference between a person not having internet access and a place not having internet access. You'd be surprised at the far flung locales that still have internet cafes and WiFi at hotels. The density and quality of internet access in poorer areas is already going to be a function of where wealthy people travel. Also, you have to correctly judge the cost of service. Demand for internet access is much more elastic than, say, demand for a cure for cancer. The lesson from the Iridium constellation is that even wealthy people aren't necessarily willing to pay as much as needed, or as often as needed, to recoup investments. Iridium succeeded but the original company went bankrupt shortly after starting service.

irq-1 10y ago

I suppose connection to this or the SpaceX satellite system will be the new short-wave radio -- borderless and uncontrollable by governments.

candiodari 10y ago
Uncontrollable by governments ? Why ? Easy to disrupt the frequency and if you're following the law you need a frequency license in the first place. If you don't get one, they have a good reason to disrupt you even if that's the only thing you're doing wrong.
- pdabbadabba 10y ago
  That's all true. But isn't that all true of short-wave radio as well?

ChuckMcM 10y ago

1996[1] to 2016 which puts it 20 years before its time (maybe). Given solar cells and battery tech an airplane at 100K feet makes a lot more sense and seems to have much easier maintenance mechanisms (land the plane periodically). [1] https://en.wikipedia.org/wiki/Teledesic https://en.wikipedia.org/wiki/Teledesic

manarth 10y ago
easier maintenance mechanisms It might cost more to put into orbit than to put up in a plane, but once there, satellites don't tend to need maintenance.