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Road to Vision 2030: Driving connectivity, innovation and job creation through an LEO satellite industry
Published in The Saudi Gazette on 08 - 07 - 2021

This past April, Saudi Arabia's digital regulator, the Communications and Information Technology Commission (CITC), reaffirmed that satellites are integral to the Kingdom's digital transformation in a dedicated webinar entitled 'Fostering New Generation of Satellite Technologies in Saudi Arabia,' with Low Earth Orbit (LEO) satellite technology investment of particular importance. And with connectivity, economic diversification, and job creation simultaneous priorities over the coming years, LEO satellites can drive success in these areas through their far-reaching capabilities.
Situated approximately 50 times closer to Earth than Geosynchronous (GEO) satellites and backed by lower latency and greater coverage, LEO satellites can support innovation, present job creation opportunities, enable use cases, and revolutionize connectivity. Moreover, the provision of global coverage and low latency broadband connectivity can overcome issues such as geographic accessibility and substantial physical infrastructure building costs.
This viewpoint is substantiated by BCG's report, which estimates that the Middle East LEO satellite market alone will be worth $110 million by 2030 — a conservative projection given that the global satellite communication (SATCOM) market is expected to reach $40 billion by 2030, and LEO is expected to contribute to $16 billion of this market. As such, the emerging LEO satellite industry has a strong potential to make significant development contributions across the region — including Saudi Arabia's Vision 2030.
A unique transformative economic and social reform blueprint aimed towards unlocking growth, diversifying the economy, and enriching the lives of citizens, Vision 2030 has surpassed various noteworthy achievements to date as part of its quality of life, human capability development, and national transformation programs. However, further progress under the strategic framework is essential, with the LEO satellite industry set for a leading role in connectivity, economic diversification, and job creation.
Connectivity: At its core, the need to establish connectivity remains vital and at the forefront of the digital agenda. Looking back, the pandemic has shown that billions of people worldwide remain without Internet access, which is a universal right. LEO can support Saudi Arabia's vision of ensuring 100 percent high-speed broadband coverage across the Kingdom including in remote areas where traditional terrestrial infrastructure is extremely expensive to deploy.
Beyond bridging the digital divide, LEO satellites can also be integral to the development of 'The Line' — a proposed smart city project that will, upon completion, have no cars, streets, or carbon emissions. The country's leadership is committed to overseeing the successful development of smart cities, in which an estimated 90 percent of data will be harnessed to elevate infrastructure capabilities far beyond the one percent typically used in existing smart cities. Crucially, LEO satellites can provide communication in remotely inhabited areas and utilize ICT to enable, facilitate, and accelerate smart city development in line with Vision 2030.
Economic Diversification: The LEO satellite industry drive research and development opportunities, enabling the country to position itself among the world's best and most productive in terms of ease of doing business, innovation, entrepreneurship, and Research & Development (R&D) indicators. Furthermore, the industry can also ensure a 'Knowledge Workers' increase within the national labor force, with members helping to further integrate LEO satellite technology into B2B and B2G use cases, while additional opportunities to explore new LEO use cases across the education, government, and oil and gas sectors.
Job Creation: The creation of jobs for citizens is also a topmost Vision 2030 priority, and it is important to appreciate that the LEO satellite can play an integral role. Following a recent International Telecommunication Union (ITU) report which highlighted Internet penetration rates being 87 percent in the developed world but only 47 percent and 19 percent in developing countries and least developed countries, respectively, 'Connecting the Unconnected' was a major theme during the 2020 G20 Riyadh Summit.
Crucially, LEO satellite capabilities can bridge the connectivity gap and boost initiatives centered around job creation. Saudi Arabia's space program is one such example, with the country planning to provide USD 2.1 billion to help attract foreign investment and create thousands of positions for up-and-coming generations of Saudi nationals.
As Saudi Arabia looks ahead, LEO technology is set to play a prominent role in supporting satellite communications service market growth. Therefore, the Kingdom can capitalize by harnessing the technology for commercial and government use that drives the ambitions of Vision 2030. With an emphasis on economic diversification and socio-economic development, three areas stand to benefit directly:
• Technology: LEO satellites can encourage business digitalization and widespread Internet of Things (IoT) adoption. For example, the provision of world-class connectivity for remote oil fields will enhance the oil and gas sector, with LEO technology improving firms' digital capabilities.
• Transportation: LEO technology can assist national carriers in any passenger traffic increases, offering leading in-flight connectivity. LEO connectivity services can present sizeable opportunities in this regard, and it is anticipated that future developments will enable autonomous vehicles.
• Connectivity: By offering an alternative that limits infrastructure investments and ensures business continuity should terrestrial infrastructure fail, LEO technology can provide enhanced connectivity while enabling megacities development and supporting digital objectives.
The LEO satellite industry represents an opportunistic gateway for Saudi Arabia to drive connectivity, innovation, and job creation. With subsequent investments in line with Vision 2030 objectives, the country can utilize the technology as a platform for sustainable success in each of these areas and meet its national ambitions.
— the writer is managing director and partner at Boston Consulting Group (BCG)


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