Satellite communications are set to take a new direction. Almost $50 billion will be spent over the next six years on a breed of system that will take satellites out of the back room of telecommunications and into the mainstream. Supported by leading companies such as Motorola, Hughes, and Alcatel, the systems will play two main roles in telecommunications: they will support the next generation of mobile telephones that will work almost anywhere on the planet, and they will allow worldwide access to high-speed data networks, especially the Internet.

Why is this renaissance happening now? What exactly will the systems do for customers? Why are so many smart people and companies throwing such enormous amounts of capital into the sky? And what do these systems mean for terrestrial operators? These are some of the questions we aim to answer.

The renaissance of satellite communications

Satellites have been used in telecommunications since the mid-1960s. For a decade or so, they carried the bulk of international telephone calls, which they still do on routes to small and developing countries. In addition, VSAT (very small aperture terminal) networks provide essential communications for large companies, big ships, and disaster relief. But the use...