Disruptive Innovation and Security Risks

By Anuj Khebde, PGDRM Batch Jan’21-22

How Innovation is Disrupting the Industry and Improving Connectivity?

• According to data collected by the United Nations, more than 20% of the world’s population does not have access to 4G network coverage or better. In Many markets, broadband is the only option and as such, providers have little to no competition. ​
• Satellite internet has the most disruptive potential in reaching unserved and underserved areas, while there are limited benefits for urban and suburban areas with good coverage from legacy providers.​
• To solve this issue, major players are providing large no. of satellites orbiting Earth to a network of smaller-scale ones orbiting closer to the planet.​
• These satellites are known as ‘Low Earth Orbit’ satellites these sleek satellites are less expensive than their inexpensive counterparts, coming in at around $1 million each, with that number expected to drop to as low as $10,000 as the technology advances and customers catch on.​
• The LEOs will be constructed using lower-priced, mass-produced materials via an assembly line. This way, in the event that a particular part becomes defective, providers aren’t required to spend time and resources attempting to fix it. They can simply replace the part and continue to provide uninterrupted service.​
• Over time, this improved access could even be an impetus to convince more people to move away from cities and into more rural areas, which have, until now, been cut off from the grid.That remoteness is about to transform, however, as LEO systems are researched, fine-tuned and delivered around the world. The result will be a competitive internet market that can ultimately drive up offerings while dropping cost-per-bit prices across the board​.

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Working of  LEO Satellite Internet

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Will LEO SI be the Next Disruption to the Telecommunication Industry?​

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• The infrastructure needed for 5g is known can cause to local disruption in habitats and hence has got a lot of oppositions from various environmental groups. With advent of LEO SI companies, telecom companies can concentrate their efforts only on urban areas where there is expanding need of fast internet. This might help telecom companies in decreasing the pressure from various environmental groups. ​
• One of the biggest questions with telecommunications is how to provide connectivity to sparsely populated rural areas where infrastructure deployment is not economically viable. ​
• Traditional telecommunications businesses and present satellite internet providers are unlikely to be affected at initially. Satellite broadband, on the other hand, may prove transformative in the long run. Telecoms may choose to yield rural and underdeveloped areas to satellite broadband providers, as constructing infrastructure in these areas is frequently prohibitively expensive. Indeed, satellite broadband constellations may benefit telecoms businesses by enhancing mobile backhaul services.​

Major players in the internet space race

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​Comparison of GEO, MEO and LEO satellites​

Read the full research here: Disruptive Innovation and Security Risks, Research by Anuj Khebde

Disclaimer

This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

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