How private 5G, satellite internet services can cost dearly to companies

New Delhi: As players like Elon Musk’s SpaceX, Hughes Communications India (along with ISRO) and Amazon ramp up efforts to provide affordable internet services via low-earth orbit (LEO) satellites, the business model and pricing will be a challenge for scaling up networks, according to a new report.

A few players are already piloting internet services and there are signs that consumer devices with LEO connectivity are on the horizon.

“However, due to high capital expenditures and user costs, the business model and pricing will be a challenge for scaling up networks as LEO connectivity cannot fully serve as a substitute for terrestrial networks for all use cases that rely on cost-efficiency, energy consumption, or overall performance,” according to ‘McKinsey Technology Trends Outlook 2022’.