5G NTN on the horizon in satcomms space race

With direct-to-device (D2D) services taking off from low Earth orbit (LEO) challengers like SpaceX’s Starlink and AST SpaceMobile, the role of traditional satellite operators can be overlooked. But new standards and multi-orbit capabilities could give operators with legacy geostationary and medium Earth orbit (GEO/MEO) assets an edge as terrestrial and non-terrestrial networks (NTN) converge.

Recent 3GPP standardization work has enabled deeper integration between satellites and 5G networks that opens opportunities for new “5G NTN” services that can beam broadband via satellite to smartphones, vehicles or Internet of Things (IoT) devices.

The latest 3GPP Release 19, to be completed by the end of this year, will enable devices to roam between 5G terrestrial and GEO, MEO and LEO satellite networks. While satellite operators have long provided trunking and backhaul connectivity for mobile operators to fill gaps in terrestrial networks, this level of integration is different.

“For traditional satellite operators, 5G NTN presents both an opportunity and a necessity to remain competitive in a market increasingly driven by D2D connectivity… By adopting 5G standards, traditional operators can unlock new revenue streams, extend their market reach, and avoid being sidelined in the D2D and IoT connectivity boom,” said Arun Menon, Principal Analyst at MTN Consulting.

5G NTN on the horizon

Last month, Eutelsat OneWeb claimed to be the first to test 5G NTN over its LEO satellites in partnership with MediaTek and Airbus, connecting a 5G device to the 5G core network via satellite.

Filipe de Oliveira, Vice President Commercial for Eutelsat Group, said the 5G NTN standard is a “significant milestone” because it helps the satellite operator to be “better integrated” and interoperable with its mobile operator customers. He said Eutelsat can currently connect 4G and 5G nodes using previous generation technology, but the new standard “simplifies that a lot.”

“It lowers the cost of access and enables the use of satellite broadband for 5G devices around the world. It is simplifying [in terms of] cost and integration,” he said.

Eutelsat plans to deploy 5G core in its next-generation satellite constellation to support 5G NTN services, he explained.

Meanwhile, Intelsat has a collaboration agreement with Japan’s Softbank to research and develop a “Ubiquitous Network” that supports “seamless 5G connections” between satellite and terrestrial mobile networks. One of the first use cases is for connected vehicles.

“They have their 5G terrestrial network, we have our 5G NTN, and we get the 5G cores to talk to each other like a standard kind of roaming agreement. When a device that is equipped for both terrestrial and non-terrestrial moves between those networks, it will work just like cellular roaming today. That's where we want to get to,” said Gerry Collins, Director of Networks Product Management at Intelsat.

Tech and regulatory challenges

Traditional satellite operators are well placed for the 5G NTN opportunity for D2D connectivity. To their advantage, they have existing spectrum holdings, regulatory relationships and infrastructure assets, explained Menon.

But the proposition faces challenges too. Most smartphones and IoT devices do not support direct NTN connectivity and will need new chipsets and firmware updates, he said.

Intelsat’s Collins said devices that support the 5G NTN standard are expected to be available in 2026 or 2027.

Menon said there could also be regulatory hurdles to harmonize spectrum in traditional satellite bands with NTN spectrum, as well as infrastructure upgrade requirements and potential business model disruption.

“The challenge is not whether to integrate NTN, but how quickly and effectively they can do so while navigating regulatory and technical constraints,” said Menon.

More than LEO

For some traditional satellite operators, another advantage is having multi-orbit infrastructure. Eutelsat OneWeb, for example, has GEO and LEO satellites. Intelsat operates GEO, has teamed with Eutelsat OneWeb to offer LEO capacity and is in the process of being acquired by SES, which will add more GEO as well as MEO satellites into the mix.

“Add two networks together and you get a bigger pipe, simple as that, and you've got diversity. So if one is congested or has an issue, you're always falling back to [the other]”, said Collins.

This multi-orbit capability gets companies like Intelsat “back into the game” since disruptive LEO players have entered the market.

“All these new players … has been a good thing because they've got people thinking about space and how [to] use space for communications. We have seen in the last three or four years that our customers, which are mostly the telcos and MNOs, now realize they need to have a space strategy… and they all want to look at multiple options,” he said.

Intelsat believes that “it's not just all about LEO, it's actually about the values of putting them together,” he added.

In Menon’s view, new LEO satellite operators have expanded the market but the impact on traditional players has been “mixed”. LEO constellations have sparked demand for new broadband, D2D and global IoT connectivity, which has grown “the overall satellite services revenue pie” and opened new use cases, but this has “not necessarily translated into higher revenues for all players”, he said.

“The future for traditional satellite operators will depend on how well they adapt – whether through multi-orbit strategies, partnerships, or NTN integration,” said Menon.

Speaking the same language through standards

Another sign of satellite operators and telcos coming closer together is the work SES is doing with the Metro Ethernet Forum and the TM Forum on standardization. SES is the first satellite provider to achieve TM Forum’s “Running on ODA” accreditation.

David Villegas, Director of Digital Architecture at SES, explained that TM Forum has been capturing telco best practices for more than 20 years in the areas of processes, data, interoperability, and application integration. By leveraging these telco standards, SES can accelerate its IT processes and transformation.

“We identified that we can leverage what telcos are doing for our network connectivity products… Telcos are our customers as well, so if we talk the same language it’s going to be easier,” he said.