CoBank Sees Challenges for LEO Broadband Business
Low earth orbit (LEO) satellite broadband faces some significant headwinds on its way to business viability, including the difficulty competing in suburban and urban markets with incumbents, CoBank reported Monday. Another competitive challenge is the growth in rural wireless broadband…
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networks due to government incentives and new business models, it said. LEO constellations also could have difficulty getting funding, CoBank said, pointing to OneWeb's bankruptcy (see 2003310042). It said Amazon or SpaceX seem the most likely buyers of bankrupt OneWeb's assets, with its spectrum being particularly attractive. The lender said Amazon doesn't have access-to-capital issues and its opportunity to bundle the broadband with other services gives it particular strength.