NSR’s 5G via Satellite, 2nd Edition report, launched today, sees 5G access protocols that incorporate non-terrestrial networks will attract 100s of millions of smartphones and IoT devices to satellite networks by the decade’s close. Beyond traditional telco areas, multiple segments show accelerated growth from transition to 5G, generating US$125.5 billion in cumulative service revenues.
While COVID-19 may increase demand, delaying 3GPP release 17, key actors in the industry are rushing to adopt 5G standards for network orchestration and integration with telco networks. Value chain transformation is already taking shape with Space and Ground Segment vendors providing infrastructure 'as-a-Service.' the development of verticalized offers, and growing interest of mainstream Telcos in Satellite technologies.
“Direct satellite to device communications is a game changer for the industry. It instantly opens the door to a huge addressable market as any mobile phone or IoT device can roam to a satellite network when moving outside terrestrial coverage.” explains report author Lluc Palerm. “Standardized service orchestration based on 5G is a tremendous opportunity to make satellite easily adoptable by mainstream telcos.”
5G-based service orchestration profoundly changes the value chain, allowing new actors to incorporate satellite in their technology mix. Equipment vendors will be a key enabler for Satellite network compatibility with 5G, yet the reward potential of successful platform innovation has widespread promise as 5G Ground Segment revenues climb to US$2.5 billion annually by 2030.
Palerm added, “For the first time, satellite was not left behind in the definition of mainstream Telco standards. 5G is a once in a lifetime opportunity for Satcom to become integrable with mainstream networks opening a huge addressable market.”