The Grounded Problem Holding Back Space-Based Connectivity
What if I told you that the biggest hurdle for satellite-powered global connectivity isn’t rocket science—it’s accounting? It sounds absurd, but here’s the reality: while companies like AST SpaceMobile, SpaceX, and Skylo are launching satellites to connect every corner of the planet, the telecom industry is still stuck in the 1990s when it comes to billing. Personally, I think this is the kind of irony that only industries with decades of inertia could produce.
The Disconnect Between Space and Telecom
On paper, the partnership between satellite operators and mobile network operators (MNOs) should be a match made in heaven. Satellites can provide coverage where cell towers can’t, and MNOs have the infrastructure to make it all work seamlessly. But in practice, it’s more like a forced marriage. One thing that immediately stands out is how these two industries operate in completely different financial universes. Satellite operators charge per connection, while MNOs are stuck in a billing system designed for minutes and messages. What many people don’t realize is that this incompatibility isn’t just a technical issue—it’s a psychological one. MNOs are hesitant to invest in upgrading their systems because they don’t see immediate returns, and satellite operators are too naive to navigate the telecom industry’s entrenched processes.
The Roaming Revolution: A Lesson from History
If you take a step back and think about it, this isn’t the first time the telecom industry has faced this problem. In the early days of mobile roaming, operators had no way to handle cross-border traffic. But they came together, created standards, and built a system that now handles billions of dollars in settlements annually. That’s why your phone works seamlessly when you travel abroad. What this really suggests is that the solution to today’s satellite-telecom disconnect already exists—it’s the GSMA’s Billing and Charging Evolution (BCE) framework. The problem? MNOs don’t see enough short-term revenue to justify the switch. But here’s the kicker: terrestrial roaming didn’t take off until common settlement processes were in place. History is repeating itself, and the industry is ignoring the playbook.
The Cost of Hesitation
In my opinion, the reluctance to adopt BCE is more than just a missed opportunity—it’s a strategic blunder. Look at what happened to German automakers when they underestimated the rise of electric vehicles. They thought their market dominance would protect them, but it didn’t. The same could happen to MNOs if they don’t act now. What makes this particularly fascinating is that the technology for satellite-based connectivity is already here. Within five years, someone will make a voice call from the middle of the ocean using a regular phone. The question is: will the telecom industry be ready?
Breaking the Cycle of Inaction
A detail that I find especially interesting is how satellite operators’ naivety could actually be their strength. They’re proposing innovative commercial models that MNOs would never consider on their own. But instead of embracing these ideas, MNOs are pushing back, trapped by decades of assumptions about how mobile commerce should work. From my perspective, this is where the real opportunity lies. If MNOs can set aside their skepticism and collaborate with satellite operators, they could unlock a market that’s projected to grow sevenfold in the coming years.
The Future of Connectivity—If We Let It Happen
This raises a deeper question: what does it take for industries to evolve? The satellite and telecom sectors have all the pieces they need to revolutionize global connectivity. But without a shared framework for billing and settlement, those pieces will never fit together. If we’ve learned anything from the history of innovation, it’s that hesitation is the enemy of progress. The longer these industries wait, the fewer companies will be around to make it happen.
So, here’s my takeaway: the most expensive problem in the satellite industry isn’t in orbit—it’s in the boardrooms and billing departments of telecom companies. The technology is ready. The market is waiting. All that’s missing is the courage to move past outdated systems and embrace the future. Personally, I think that’s a challenge worth solving.
