The 5G wireless communications access protocols that incorporate nonterrestrial networks will attract hundreds of millions of smartphones and IoT devices to satellite networks by the decade’s close, according to a report from Northern Sky Research (NSR). The report, “5G Via Satellite, Second Edition,” indicates that beyond traditional telecommunications company areas, multiple segments show accelerated growth from a transition to 5G, generating $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,” a statement from NSR reads. “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.”
The report’s author, Lluc Palerm, an NSR consultant, said that direct satellite-to-device communications would make a big difference.
“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,” Palerm said. “Standardized service orchestration based on 5G is a tremendous opportunity to make satellite easily adoptable by mainstream telcos.”
According to the report, 5G-based service orchestration profoundly changes the value chain, allowing new actors to incorporate satellite in their technology mix. It said that 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 revenue climbs to $2.5 billion annually by 2030.
“For the first time, satellite was not left behind in the definition of mainstream telco standards,” Palerm said. “5G is a once-in-a-lifetime opportunity for satellite communications to become integrable with mainstream networks, opening a huge addressable market.”
NSR offers the report for sale on its website at www.nsr.com/?research=5g-via-satellite-2nd-edition.