Taipei, May 29 (CNA) Taiwan’s plan to issue licenses for the delivery of low-earth-orbit (LEO) satellite services is a major strategic move for the country and will also create great business opportunities for the relevant industries, according to market analysts.
For example, if Taiwan’s underground and undersea fiber optics are damaged during a war, LEO satellites, which normally operate below an altitude of 2,000 kilometers, can play a powerful role in military functions, Digitimes research analyst Ashley Huang (黃雅芝) told CNA in a recent phone interview.
There is existing evidence of the value of LEO satellites in the event of a war, Huang said, citing Ukraine’s effective use of LEO data in its current war against Russian.
In addition to the strategic value to a nation, there is also a potential for a boost to the satellite phone market, which will generate new business opportunities, under Taiwan’s plan to issue LEO licenses to domestic telecom companies, Huang said.
Universal Microwave Technology (UMT) Inc., a leading Taiwanese supplier of millimeter wave passive components to international space companies, said it was eager to see the opening of the LEO business in Taiwan, as it was aiming to venture into the satellite component market.
If the Taiwan government decides to accept licenses applications from global LEO satellite service providers, major companies like SpaceX, Telesat, OneWeb and Amazon are likely to apply, UMT said.
Meanwhile, two Taiwan-based companies have expressed interest in the emerging LEO communications market, namely Auden Techno Corp., a supplier of wireless local-area network antenna and radio frequency technology products; and Accton Technology Corp., a leading provider of networking solutions.
The National Communications Commission (NCC), Taiwan’s top media and telecommunications regulator, in March approved draft rules for the appropriation and assignment of radio frequency bands for satellite communications, paving the way for licenses applications from telecom companies to provide LEO satellite services.
To be eligible to obtain such licenses, the telecom companies must be registered in Taiwan and managed by Taiwanese, the NCC said.
Foreign operators, however, can form partnerships with Taiwanese companies to apply for the licenses, it added.
In a report released last year, tech market intelligence company TrendForce Corp. said that LEO satellites’ signal coverage is not constrained by geographical features such as as mountains, oceans, and deserts, which means they can synergize with 5G mobile communications to reach areas that lack 5G coverage.
In the global satellite market, LEO satellites also have the greatest developmental potential, given their proximity to earth and their relatively lower latency, radiation, and cost, compared to high earth orbit (HEO) and medium earth orbit (MEO) satellites, TrendForce said.
It forecast that the global satellite industry will generate revenue of US$295 billion this year, an annual increase of 3.3 percent.