Section 1.1: Comparing Approaches: Starlink vs. OneWeb

Starlink's business model focuses on delivering affordable, high-speed internet directly to consumers. This objective is facilitated by positioning its satellites in a low orbit, approximately 340 miles above Earth. This proximity reduces the signal strength needed for effective communication, allowing for simpler and less costly satellite dishes, ultimately lowering service costs. Moreover, the reduced distance translates to lower latency, enhancing speed. However, the limited coverage area of these low-orbit satellites necessitates a vast number of them—Musk envisions a total of 42,000 Starlink satellites in orbit. While this ambitious goal may seem daunting for most companies, SpaceX's cost-effective rocket launches and in-house satellite production make this feasible.

In contrast, OneWeb operates differently. They do not manufacture their own rockets or satellites; instead, they launch their satellites into higher orbits, around 745 miles above the Earth. This strategy allows each satellite to cover a broader area while maintaining acceptable latency levels for high-speed internet. Consequently, OneWeb can achieve global coverage with only 618 satellites, requiring approximately 7,000 for full deployment. While the access terminals will be more advanced and, therefore, pricier than Starlink's, the overall cost of developing their satellite constellation is expected to be lower. Musk projects that Starlink's completion could cost around $10 billion, whereas OneWeb anticipates a budget closer to $2 billion, although current estimates suggest it may exceed $3 billion.

Section 1.2: Internet Speed and Pricing Comparison

Given OneWeb's rapid progress, how do their internet speeds and pricing stack up against Starlink? Starlink offers two tiers: Residential and Business. The Residential package requires a one-time payment of $599 and a monthly fee of $110, promising speeds ranging from 50 to 200 Mbps with a latency of around 25 milliseconds. Real-world averages are closer to 80-90 Mbps and a latency of 40-50 milliseconds. For businesses needing more capacity, Starlink's Business option entails a satellite dish costing $2,500 and a monthly fee of $500, providing speeds of up to 350 Mbps with improved stability.

On the other hand, OneWeb claims to deliver speeds of up to 200 Mbps with a latency of 70 milliseconds, supported by past performance where they achieved 400 Mbps with 32 milliseconds latency in 2019—even without a full satellite constellation. Presently, OneWeb's service is primarily directed at commercial clients in challenging environments, with costs ranging from $1,000 to $1,500 monthly. This pricing is comparable to Starlink, considering the need for multiple Starlink terminals to match OneWeb's capabilities.

OneWeb is innovating by developing small, steerable satellite dish terminals for individual and mobile connections. Trials have already been conducted with search and rescue teams in Wales, UK. Once operational, these terminals could provide consumer access to OneWeb's services. However, unlike Starlink, OneWeb plans to distribute its offerings through established telecommunications companies, having already partnered with US-based providers like AT&T. This strategy could enhance efficiency by allowing the installation of commercial-grade dishes to service entire communities, potentially leading to lower costs for consumers. Speculations suggest that OneWeb's internet could be priced as low as $12 per month, though this remains uncertain.