Nanosatellites or small satellites (SmallSat) is getting traction in the space industry lately. As the name suggests, these are small version of a satellite which has shorter life span, smaller payload, lower cost and usually targeted for a specific purpose. Do note, the orbit of the satellite still follows the conventional satellite as we know GEO, MEO and LEO. Recently there are some companies find these breeds of satellites an appealing proposition for their use cases.
Let us take an overview of a conventional GEO satellite. Typically, satellite has a 15-year lifespan which is dictated by the amount of fuel the satellite has once it is in the orbital slot and ready for service. The electronics usually last longer than the fuel life unless there are unfortunate event of failure. This fuel life also depends on the efficiency of satellite control professionals who performs satellite operations known as TT&C (Telemetry, Tracking & Commanding) from the earth station. Highly efficient satellite operations can lead to longer satellite life beyond 15 years.
The business concept behind a GEO satellite is also determined by the satellite life. Satellite operators/owners are in the business of leasing their transponder capacity to customers such as broadcasters, telecommunication providers, military and etcetera. As the Return of investment (ROI) of a satellite is typically 6-7 years, the contract period to end customers are usually a long term (e.g.,15 years contract). This has been the conventional business model of a satellite business.
However, given the rapid advancement of communication technology today, this is changing. Customers are no longer inclined to sign up a long-term contract as they may find other alternative technology to replace satellite and these come in many forms such as fiber, terrestrial technology, high altitude platform (HAPS) and others. This has directly impacted the way satellite business is done and Nanosatellites / SmallSat which offers shorter life cycle and lower cost may be preferred. Customers can select a smaller specific coverage satellites to target specific use cases. For example, a satellite which could light up an island or small country for broadband connectivity, customer then can build a 5-year broadband business case instead of a conventional 15 years.
That brings us to the question, why were the conventional satellite business case or satellite life constructed with 15 years span initially. The answer is due to an important component in satellite business which is the expensive satellite launch cost. With the emergence of new launchers such as SpaceX, Blue Origin where reusable boosters are used, satellite launch providers have begun to offer a competitive pricing for a satellite launch. The technology has matured to the extend Nanosatellite or SmallSat can “piggyback” with a conventional satellite to reduce the launch cost.
In a nutshell, satellite industry is going through a phase of evolution and Nanosatellite / SmallSat are just a glimpse of it. For example, at the time of this post there is an experiment whereby a nanosatellite made with wood, “Woodsat” is planned to be launched to space to understand the durability of different material in space. This could open a new discussion on cost reduction and different class of satellite. (https://www.space.com/first-wooden-satellite-will-launch-in-2021).
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