EYEING THE NEXT FRONTIER
Satellite entrepreneurs are looking for sky-high revenue — and soon
After launching a toaster-size satellite into space, Mina Mitry is aiming to put 50 more up there. His goal is to create an internet infrastructure for the next frontier.
“We do not have a communications infrastructure that allows the provision of internet services in space,” said Mitry, CEO of Kepler Communications. “If we can put up an internet structure between orbit and the ground, it will enable people to build out the space economy.”
Creating such solutions is a passion for aerospace engineers because it’s one of the few areas that can earn 100-times growth, Mitry said.
For KIPP (named after the robot in the movie Interstellar), Kepler miniaturized the components in a software-programmable form factor that can be designed, produced and launched within months versus the typical three to five years. “We can go from napkin design to orbit in 12 months and rapidly refresh a satellite every few years using radio-defined software to reprogram it while it’s in orbit,” Mitry said.
“Typically (hardware in space) cannot be modified.”
His ultimate goal is to have 50 satellites capable of providing lowcost internet and data-sharing devices for Internet of Things assets on earth and in orbit, including satellites, cameras, weather monitoring devices, space stations — and eventually, space tourism pods.
But meantime, Kepler is building its street cred step-by-step. Mitry said the company has a solid business case and a list of interested parties, ranging from mining and agriculture to marine and government.
“The first couple of satellites will be used to pick up data, store it and retransmit it to the ground.”
As Kepler incrementally grows the network, Mitry estimates it will achieve scale by about 2020 to 2021.
“Building an infrastructure business definitely has a different time scale versus your standard bootstrap approach. While that may be long in traditional businesses, in aerospace that’s very, very short. Typically, space companies are looking at eight or nine years of operations before they see positive cash flow.”
Important things are now happening in the satellite industry that are driving its commercial value, said James Slifierz, co-founder and CEO of Waterloo-based SkyWatch Space Applications, a company that specializes in aggregating the world’s satellite data. For example, smartphones have done wonders for shrinking form factors of satellites that are typically the size of a school bus.
“All that complexity can now fit into the size of a shoebox, which means the cost of iterating and putting something into space is decreasing at the same rate. Companies like Kepler can now raise just a few million (dollars) and launch a spacecraft.”
Speed to market also makes for a stronger business case out of the gate, he adds.
“This is a fast-growing market that will be intensely competitive over the next few years. Being first to validate your technology is very important in building a business and moving forward. What Kepler did in getting into space as quickly as it did is a very, very strong move to win that race.”
Another contributor to fast iteration is launch availability. That’s an area in which Canadian companies have an advantage, Slifierz said.
“Kepler benefits from being a Canadian company because there are a lot fewer restrictions on where we can launch vehicles from. They were able to use a Chinese rocket. That would not have been possible (if it were a U.S. company).”
Then there is a market eagerly awaiting innovation on all communications fronts. According to Hamid Arabzadeh, chairman and CEO of Ranovus Inc., an Ottawabased optical internet solutions company, satellite communications will play a significant role in a world consumed by IoT devices.
“There are remote regions that want immediate access but the cost of bringing fibre cable is prohibitive. Satellite would be ideal in those circumstances. Being able to build a solution that costs less to launch overcomes one of the biggest satellite communications challenges.”
Satellite is also unique in its ability to capture the entire world, said Kevin Tuer, vice-president, strategic initiatives at Communitech in Waterloo, Ont.
“What it all comes back to is finding the applications and uses for the data. The entire industry is focused on evolving this. It’s driving the apps, which in turn (are) driving infrastructure companies like Kepler and SkyWatch. Now the task is figuring out the business models.”
Financial Post
This is a fast-growing market that will be intensely competitive over the next few years. Being first to validate your technology is very important in building a business and moving forward.