Get Ready for Launch: How Satellite can Solve the Economics of 5G

The momentum with which the mobile and satellite industries’ activities have converged has been building over the past few years - and has now reached a tipping point. Mobile Network Operators (MNOs) can clearly see benefits in terms of both coverage extension and the chance to open up new monetization possibilities in their B2C and B2B markets. GSMA Intelligence research showed in August 2024 that there were 91 mobile operators with satellite services, of which 16 are live and 75 are planned or currently testing. At the same time, the industry is coming to the realisation that satellite-based Direct to Device (D2D) 5G is not purely a vertical play for markets such as aviation or shipping, but can have a critical role to play in augmenting global coverage as part of a comprehensive mix of wireless networks. However, for many MNOs, there remain questions about the underlying technology as well as its business case.

Just what is 5G NTN?

Whereas conventional mobile communications relying on purely ground-based towers, networks utilizing satellite infrastructure are now referred to as Non-Terrestrial Networks (NTN). Standards are being developed that will ensure seamless connectivity between terrestrial and space-based networks, utilizing satellites operating at a range of different altitudes; from Low-earth Orbit (LEO) and Medium-earth (MEO), to Geostationary (GEO). Each of these offers varying trade-offs between coverage area, latency, throughput and user density.

Today, NTN can primarily address connectivity challenges in areas where traditional terrestrial options are impractical or economically unviable, for example providing coverage for use cases which include maritime communications, remote desert or hilly regions, in-flight connectivity, island communities, and other isolated areas.

The increasing co-operation and convergence between the terrestrial mobile operators and the satellite industry has led to the bringing together of a broad ecosystem which continues to evolve. One of the main shifts this has led to has been from proprietary systems - requiring separate devices - to 3GPP standards-based networks and thus enabling compatibility with existing handsets and IoT modules. To-date, the majority of satellite services are proprietary and been targeted at delivering dish-based broadband services. However, the growing shift to a standards-based approach opens up a whole new market of B2B IoT and the potential for Direct-to-Device (D2D) services to compliment coverage for existing terrestrial networks.

Notably, some satellite service providers, such as Terrestar, have already introduced 3GPP Narrow Band Internet of Things (NB-IoT) offerings for IoT services. As the industry evolves, more satellite operators are expected to migrate towards 3GPP NTN specification-based network services, driven by the benefits of standardized, interoperable solutions.

Beyond the shift to standards-based technologies, one of the other major considerations in the NTN space is the choice of architecture, with one of the most fundamental decisions being the location of the base-station itself. Under so-called Regenerative models, this is based on the satellite, whereas with Transparent approaches the satellite relays from ground-based base stations. Both approaches have their benefits and drawbacks and are being deployed in parallel depending on the operator's goals and technical requirements. Transparent payloads are often preferred for simplicity in early systems, especially for GEO satellites.

The global market for satellite opportunities is being driven by the gaps in the 5G business case – where the economic models of both FTTP and 5G don’t add up and haven’t generated the returns that MNOs expected. The conversation has now shifted beyond the rural edge, with the larger goal being the interworking with 5G with the objective being to lower the cost of terrestrial roll out to marginal and capacity-limited areas.

At the same time, regulators are recognizing the huge potential of NTN, advocating for improved coverage rather than outright banning not-spots. Finally, areas that have been left unconnected from 3G and 4G networks and excluded from the socio-economic benefits of mobile broadband can expect to be connected thanks to 5G NTN coverage.

Meanwhile, NB-IoT has huge potential for cost-effectively replacing 2.5G services in discrete areas, supporting the switch-off of legacy terrestrial infrastructure. It’s clear to see therefore the huge potential for NTN services and the benefits to the consumer, operators and industry alike.

Terrestar – Connecting Canada

Terrestar Solutions Inc. (TSI) is a Canadian-based Satellite Operator with extensive wireless connectivity experience that aims to provide affordable and accessible coverage across the whole country with a vision of connecting everyone, everywhere to everything.

However, while the majority of Canada’s population resides in concentrated areas, this has left delivering connectivity across the country outside of these areas challenging both logistically and economically. It is estimated that around 75% of Canada’s landmass lacks wireless coverage, including some 14,000km of its major roadways.

Initially using proprietary satellite technology and user devices, TSI has been providing satellite-based services and is working in conjunction with Mavenir to deploy a fully 3GPP standards-based GEO satellite-based network that integrates closely with terrestrial infrastructure, enabling ubiquitous coverage across the country. Initially this is based on NB-IoT, but with a clear roadmap to launching a LEO network to deliver 5G NTN connectivity.

The two companies’ co-operation has neatly shown the potential power of NTN and how existing satellite operators, working in conjunction with cellular industry leaders such as Mavenir, can provide a force multiplier by combining their expertise and adopting 3GPP standards-based technology.

Conclusion

It is clear that the marriage of the traditional terrestrial cellular and satellite industries is delivering a whole that is bigger than the sum of its parts. The unique ability of NTN to deliver coverage over an extremely wide area, in a highly-cost effective manner, not only opens up a range of exciting and potentially lucrative new use cases, but it can also be incredibly complimentary to existing cellular networks.

By ensuring that coverage is almost ubiquitous and helping cellular operators deliver their required coverage to fill in and ensure the end of not-spots. Key to all of this is the use of open 3GPP standards, which ensure equipment interoperability and lead to economies of scale, which benefit all players in the value chain.

By Suman Chandra Sharma, Senior Director, Product Management, Mavenir