A new report from Oxford Economics, commissioned by Amazon, highlights a transformative opportunity for small businesses across the globe as low Earth orbit (LEO) satellite broadband services promise to bridge critical connectivity gaps. With the potential to add between $32 billion and $863 billion to global GDP by 2035, this technological advancement could support millions of new jobs, elevating economic prospects for underserved communities and small enterprises alike.

The report, titled “The Global Value of LEO Satellite Broadband Services,” outlines three growth scenarios for the LEO satellite industry through 2035: incremental, intermediate, and transformative. Each scenario models varying levels of LEO adoption, revealing substantial economic benefits tied to increased internet accessibility.

“LEO satellite broadband has the potential to become an important complement to terrestrial networks by extending internet access to communities that have long been underserved by traditional infrastructure,” noted Henry Worthington, Managing Director at Oxford Economics. For small business owners, this means more than just enhanced connectivity; it symbolizes access to vital digital tools and resources that can drive growth and competitiveness.

Currently, about 32% of the global population—over 2.6 billion people—remains offline due to a mix of affordability and infrastructure barriers. Small businesses in remote areas often face significant hurdles in accessing reliable internet, which severely limits their ability to engage in e-commerce and digital marketing. As Brian Huseman, Amazon’s Vice President of Public Policy, observed, “Behind every statistic in this report is a person—a student who will be able to participate in online learning, a small business owner that will be able to grow their business.”

By leveraging LEO satellite technology, businesses located in challenging environments can now reach a broader customer base, enhancing their operational capabilities. These satellites are designed to orbit close to Earth, making them capable of delivering high-speed, low-latency internet connections. This proximity allows for real-time applications, such as video conferencing, remote healthcare, and e-commerce, which are essential for modern business interactions.

For small business owners, the benefits extend beyond improved connectivity. Within the transformative scenario projected by the report, LEO satellite broadband could connect 421 million people globally, generating up to $863 billion in additional GDP and supporting around 21 million jobs. In North America alone, remote communities could see a rise in productivity contributing up to $297 billion by 2035, potentially supporting an additional 1.4 million jobs.

Challenges remain, specifically regarding the implementation of this new technology. Small business owners may need to consider the initial costs of equipment and installation. However, one significant advantage is the self-installation capability of LEO systems, meaning customers receive a dish and modem they can set up themselves, reducing the barriers posed by the lack of technical support in remote regions.

As the report outlines, the impact of increased connectivity could be particularly pronounced in regions like Sub-Saharan Africa, where LEO could enable up to 14 million people to get online, enhancing access to educational resources and healthcare services. For Latin America and the Caribbean, an increase of between 12 million to 50 million connected individuals could generate between $3.5 billion and $41 billion in GDP.

In the larger context, the growth of the LEO satellite broadband industry could also contribute to closing the gap between urban and rural economic opportunities. Small business owners should stay informed about this emerging technology and its implications, considering how it could influence not only their operations but also the market dynamics in their regions.

As connectivity becomes more widespread, the potential for enhanced economic activity and improved quality of life for underserved populations increases, fostering an environment where small businesses can thrive. Understanding these developments will be crucial for business owners seeking to leverage the growing digital economy.

For more information on the report, visit the original post here.

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This article, “LEO Satellite Broadband Could Drive $863 Billion Growth and Millions of Jobs” was first published on Small Business Trends