After it’s headline acquisition of Whatsapp, Facebook is finalizing the process of acquiring Titan Aerospace a manufacturer of light weight drones. Facebook wants to use these drones to provide Internet services. By parking the drones about 20Km up in the sky, they will effectively be very low earth orbiting satellites that can beam high-speed internet services to large areas of land and sea.
In April last year, I wrote an article on how low orbit drones will revolutionize telecommunications by replacing Geo-synchronous satellites found at Clarke’s orbit. Other than reducing latency by being close to the earth, they are very cheap to deploy and maintain. To give you an Idea of how cheap they can be, Facebook bought Whatsapp for $19Billion but will buy Titan Aerospace for a paltry $60Million. On the other hand a brand new Geo-synchronous satellite will set you back by about $250Million
Telecommunications technology advancements mean that telecoms equipment is now smaller and much lighter than before. This means that very powerful equipment is small and can even fit in a backpack. Vodafone recently exhibited a 2G base station that weighs 11 Kgs and could fit in a backpack that can be used to provide GSM coverage in disaster areas, 10 years ago you needed a 20 foot shipping container to host a 2G base station. With these kinds of advancements, it is now possible to use light-weight drones to provide telecommunication services.
The advantage that drones bring is that they are very easy to deploy, no need to dig up streets for several years trying to lay last mile fiber optic cables, they can also be deployed and be re-deployed with relative ease of just launching and flying it to a different position. The drones will use solar panels on their wings to power the telecommunication equipment and also power its engines. The Titan drones can stay in the sky for 5 years non-stop meaning that service reliability from them will be very good and lower running costs. See a video below of the drone model that Facebook will use to provide Internet across the world, they intend to deploy 1100 of these in the first phase.
Other than drones, high altitude weather baloons are also drawing interest from Google Inc who are currently testing internet provision in New Zealand using then. The project called “Project loon” is similar to the drone approach only that in this, baloons are used to suspend telecoms equipment 25Kn in the sky. Read more on this Google project by clicking here
What does this mean?
This project is a text-book example of a disruptive innovation. In his book titled “The Innovators Dilemma” Prof. Clayton Chistensen analyzes how companies or markets that were faced with disruptive innovation reacted and won or lost out to new innovations that were cheaper, simpler and easier. Here is a video of the Professor explaining this concept. (I recommend reading the book though)
This therefore means that the traditional mass market ISPs as we know them are about to face their biggest disruption ever. Any ISP that is to survive the future has to adapt and face skyward and not underground.