The Economics of Everyday Things 103. Satellites
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Aug 18, 2025 Tim Farrar, President of TMF Associates, brings over 20 years of experience in satellite consulting to the table. He discusses the staggering $293 billion satellite industry, tracing its roots from Sputnik 1 to modern applications. Farrar examines how satellites enhance global communication and GPS, while navigating the challenges of launching and maintaining these crucial technologies. The rise of small satellites, especially SpaceX’s Starlink, showcases the shift in operational strategies, revealing both opportunities and risks, including space debris management.
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Satellites Power Everyday Services
- Satellites enable many everyday services like GPS, weather forecasting, broadcast TV, and maritime connectivity.
- They form a complex system of manufacturing, launches, and global ground infrastructure that powers those services.
Traditional Satellites Are Expensive To Build
- Building a geostationary satellite takes years, extensive testing, and proven materials to survive space.
- Costs can reach $100–$500 million per satellite because of rigorous validation and longevity requirements.
Geostationary Satellites Cover Broad Areas
- Geostationary satellites sit ~22,000 miles up and appear fixed in the sky to receivers on Earth.
- Their high altitude gives them broad coverage, letting one satellite broadcast across large regions.