John Gedmark, co-founder of Astranis, shares insights from his extensive career in the space industry. He discusses how launch costs have plummeted, sparking a new era in satellite technology. Gedmark explores the shift from large satellites to efficient small ones, enabling wider internet access for underserved populations. The conversation also touches on the private space age’s emergence, the crucial role satellites play in bridging connectivity divides, and the future opportunities within the expanding satellite economy.
Astranis aims to bring internet connectivity to 4 billion underserved people by building and launching smaller satellites into geostationary orbit.
The decline in the cost of launching satellites to orbit has led to a renaissance in the satellite economy, with increased opportunities for innovation and business models.
Deep dives
Bringing Connectivity to the Unconnected
Astronauts is a company that aims to bring internet connectivity to the 4 billion people around the world who still don't have access to the internet. They are tackling this challenge by building and launching smaller satellites into geostationary orbit (GEO). By providing broadband connectivity to remote areas, Astronauts aims to improve access to healthcare, education, and economic opportunities. Their customers include telcos, service providers, and even in-flight connectivity companies. The need for reliable communication infrastructure is also recognized by the US military, as satellite-based communication is crucial for remote operations and national security. However, concerns about orbital debris and cybersecurity remain important considerations in the satellite industry.
The Satellite Economy and Future Opportunities
The satellite economy is experiencing a renaissance with significant declines in the cost of launching satellites to orbit. This has led to increased activity and opportunities in the space sector. The demand for satellites is driven by various sectors, including internet connectivity, government applications, and even in-flight Wi-Fi. The future of the satellite economy holds potential for further innovation, such as refueling in space, asteroid mining, and tourism. The scalability and affordability of small satellites make them attractive options for providing connectivity and other services. As the industry continues to evolve, new technologies and business models will shape the future of space exploration and infrastructure.
Challenges in Building a Space Venture
Building a space venture comes with its own set of challenges. From technological and engineering hurdles to regulatory considerations, the space industry requires rigorous planning and execution. In particular, concerns about orbital debris and its impact on space infrastructure must be addressed responsibly. Moreover, unforeseen events, like the COVID-19 pandemic and geopolitical conflicts, can disrupt operations and necessitate creative solutions. However, despite the challenges, companies like Astronex are pushing boundaries and making advancements that have the potential to transform industries and improve lives.
The Promise of Connectivity for All
The mission to provide internet connectivity to the unconnected is an important and valuable endeavor. The lack of access to the internet can hinder economic growth, education, and access to vital information and services. By leveraging small satellites and innovative technologies, companies like Astronauts are working towards closing the digital divide. Their focus on providing connectivity to remote areas and partnering with telcos and service providers is a powerful step towards connecting billions of people. With the increasing demand for broadband connectivity and the potential for further advancements in technology, the future holds the promise of a connected world, where everyone has equal access to opportunities and resources.
The cost of launching payloads to orbit has dramatically dropped, igniting a space renaissance. In 2022, a record 186 rocket launches (41 more than the previous year!) underscores this shift.
In Part 1 of our satellite economy mini-series, we sit down with John Gedmark, co-founder of Astranis, to reflect on today's innovations, who’s on the other side of the satellite market, the capabilities they’re looking for, competition, and their mission to provide internet access to 4 billion underserved people.
Look out for Part 2, where we tackle the challenges of rapidly reusable rockets with Andy Lapsa from Stoke Space.
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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