ARLINGTON, Va. - Companies that want to offer broadband satellite services will need to integrate their service with the existing terrestrial infrastructure that is delivering broadband to businesses and homes, advised David Finkelstein, senior vice president of Bethesda, Md.-based SkyBridge LP. "You cannot have a satellite-only Internet service," Finkelstein told a panel at the Satellite Internet Applications & Opportunities conference continuing here today. "There is a necessity for the new [satellite Internet] business models to be tightly coupled with the traditional telecom communications industry," he said.

Finkelstein also admitted that the prospects for his company to launch its planned constellation of 80 low Earth orbit satellites in the near future appear dim. "This is not the time to be raising $6 billion on the capital markets for a low Earth orbit constellation," he said. Instead, SkyBridge is turning to an interim plan of leasing capacity on geostationary satellites to provide broadband services, such as broadcasting, IP-content delivery and international trunking to business customers. Burt H. Liebowitz, a Rockville, Md.-based telecom consultant, advised broadband satellite hopefuls to build a business by starting with backbone Internet services to carriers, retail ISPs and enterprises in underserved markets. "There has been an explosive growth in providing backbone Internet services over satellite, at least until recently," he said. From this base of providing Internet backbone services, broadband satellite companies can then branch out into providing multicasting, content hosting, and ISP support services, he recommended.

Andrea Maléter, technical director of the Space and Telecommunications Industry Analysis Division at Bethesda, Md.-based Futron Corp., also stressed the importance of broadband satellite companies providing Internet backbone services on a wholesale basis. "Providing a piece of the overall network solution is where money is being made for satellite services," she said. She also suggested that broadband satellite companies look to services for the mobile communications market - providing mobile broadband access for "planes, trains, automobiles, trucks, and ships." She said that London-based Inmarsat Ltd. has dominated this market, but there is opportunity for competition from broadband satellite firms.

The Bottom Line

Looks like the satellite communications industry can no longer spend its time floating around in space, ignoring what's happening on terra firma. It's time to get down and dirty and work with terrestrial telecom folks to meet the growing demand for broadband services. At least that's what some industry insiders are saying. Instead of fighting fiber, the satellite guys should learn to ride the light. "Can't we all just get along."