Non-Consensus Alpha
Non-Consensus Alpha
Why higher orbits could create new opportunities
Earlier today, our friends at Payload Space featured a great piece on “Multi-Orbit Connectivity Advancing Innovation in Satellite Communications”. In short, the piece does two things:
Challenges the idea that LEO-based Starlink will be the only large, viable space-based communications business; and
Highlights the nuance of the cost/latency trade-offs of space communications
From the article:
‘No one satellite network type can meet the unique and disparate needs of each satellite application. This is why multi-orbit satellite connectivity has emerged as the next innovation in the burgeoning satellite communications industry.
“Each satellite orbit has its respective advantages and strengths,” said Carmel Ortiz, SVP of technology and innovation at Intelsat. “GEO networks are tremendously resilient, highly efficient in capacity delivery, and offer great economics. Low- and Medium-Earth orbit (LEO and MEO) constellations offer complete global coverage, including over the poles, lower latency communications, and can be accessed via smaller, flat panel antennas.”’
Today, investing in anything remotely competitive with SpaceX would almost certainly be non-consensus. That’s certainly true with launch, and it’s expanding into their Starlink/Starshield businesses. But when markets get to consensus is the exact moment when opportunities to counterposition and build large businesses arise. In the 1920s it would have been crazy to think AT&T would ever have true competition…but eventually even that changed.
Ultimately, to do this well, one needs to:
Mobilize a team of talented individuals,
Develop unique technology assets; and most importantly
Move with uncommon speed
If we do these things well, we can do what every great entrepreneur and venture investor sets out to do…generate non-consensus alpha.
