GSMA Intelligence begins monitoring NTN developments as satellite tv for pc and telecom converge
In an indication of the rising convergence of telecom and satellite tv for pc, GSMA Intelligence has put out its first quarterly tracker centered on satellite tv for pc and Non-Terrestrial Networks (NTN).
The report recognized 91 telecommunications operators with signed partnerships with satellite tv for pc corporations, via distribution agreements. These partnerships cowl about 5 billion cell subscribers globally (or about 60% of cell customers), based on GSMA Intelligence, and embrace each backhaul preparations for cell base stations (55% of offers) and direct-to-cellular capabilities (45% of the reside or deliberate companies).
“This can be a market shift from the telco perspective, with satellite tv for pc more and more seen as a practical technique of community extension and entry to income streams – each shopper and B2B/IoT – not in any other case economically possible,” based on a report abstract.
Tim Hatt, head of analysis and consulting at GSMA Intelligence and lead creator on the tracker report, stated that there’s “broad convergence between telco and satellite tv for pc teams, and that has been constructing for a number of years. It’s there as a result of it’s a cheap means of extending terrestrial networks to areas that will be unaffordable utilizing purely land-based community extension.
“We’ve gotten to about 90 % inhabitants protection, [for] 3G/4G now, however the closing 10%, economics change into prohibitive with out different means,” he continued. “Satellite tv for pc has a symbiotic relationship there, due to course it may possibly attain 100% land mass and be built-in with the terrestrial networks.”
For the cell operators, Hatt stated, this offers a “far more of a viable path to beforehand untapped revenues within the shopper and B2B dimensions. So, that’s bringing folks onto the cell community and the web who haven’t been there earlier than, significantly in locations like Africa, components of India, however even in components of Europe, the U.Ok. and the U.S.” Hatt stated there may be identified demand for roaming companies on the patron facet, but in addition IoT connections for corporations resembling utilities or oil and gasoline suppliers with operations in disparate areas that always fall exterior of terrestrial protection. The mix of serving each shopper and B2B segments, he added, provides each telcos and satellite tv for pc corporations “a path to new revenues and filling a problem that has been long-running, by way of reaching areas that have been beforehand unreached.”
In the meantime, he identified, direct-to-device satellite-based service is “not completely new.” He continued: “What’s modified is that NTN requirements have change into enshrined in 3GPP, which implies that now you’ve gotten a scale economic system that handset producers and chipset gamers can construct off and tailor their gadget portfolios to include satellite tv for pc connectivity. So persons are going to direct-to-device as a result of the requirements are in place. Secondly, it does away with the necessity for a dish, which has been a hindrance to folks as a result of it prices cash and it worsens the standard of the sign that you just get, as a result of it has to make a Wi-Fi hop from the dish to the precise customers.” So the service itself turns into extra seamless, the price construction appears to be like higher—and Hatt additionally stated that the Elon Musk “halo impact” can’t be discounted. Starlink has “some very formidable partnerships within the works, and I feel similar to Apple does with smartphones, lots of people kind of have a look at that mannequin and see they need to be taking note of that. As a result of it may possibly attain each shoppers and companies, and I feel quite a lot of cell operators are eager to do this.”
Hatt advised RCR Wi-fi Information that there’s a short-term view and a longer-term view by way of the enterprise case for NTN, and what number of gamers it’d be capable to help, significantly on the satellite tv for pc facet.
“Within the brief time period, I feel competitors goes to remain very vibrant. There’s quite a lot of non-public funding going into satellite tv for pc operators, even past the behemoths like Starlink that’s there as a result of they consider within the progress story,” he defined. The GSMA Intelligence tracker, he stated, signifies that there are a big proportion of world cell subscribers—40%—who will not be but lined by satellite-based companies. “There’s nonetheless quite a lot of headroom to maneuver into,” Hatt stated, and the constellations which will competitively serve these potential prospects are nonetheless being developed and put in place, however received’t go reside for an additional 12 to 18 months.
“I feel within the long-term, there most likely can be consolidation amongst among the satellite tv for pc teams—like three to 5 years plus,” Hatt mirrored. He stated the extent of the consolidation will rely on two issues: How a lot of a hit direct-to-device seems to be, and spectrum. There are two spectrum fashions being utilized by completely different satellite-telco partnerships: Using cell satellite tv for pc spectrum, or reuse of terrestrial spectrum. “If these two fashions co-exist, there’s much less cause for consolidation total. If one begins to be favored over one other, then I feel that augers in direction of some combos,” Hatt stated.
