EchoStar Aims at IoT, Snags S-Band Spectrum at a Steal
On Oct. 25, satellite communications company EchoStar (NASDAQ: SATS) finalized its deal to acquire Helios Wire for an undisclosed sum. With this move, EchoStar expands its satellite services beyond secure satellite business communications to add support for the Internet of Things, or IoT, while gaining worldwide rights to part of the S-band spectrum that runs IoT networks. This deft move positions EchoStar in a favorable spot to leverage the possibilities of S-band technology into ongoing success.
Many types of radar use the S-band, but advancing technology now utilizes it increasingly for satellite data transmission, too. One major advantage of this frequency is its power to transmit easily through rain or other bad weather, helping ensure strong service without interruptions. For IoT services, S-band transmission sharply cuts costs compared to other methods. That pricing improvement could potentially speed up the more widespread adoption of the Internet of Things, thus feeding back into more demand for EchoStar's offerings.
EchoStar's latest purchase gives it a crucial chunk of spectrum to power more reliable satellite communications and conversations among the Internet of Things. Source: Getty Images.
Source Fool.com
