A ‘market shift’ towards NTN: GSMA Intelligence

GSMA Intelligence begins monitoring NTN developments as satellite tv for pc and telecom converge

In an indication of the growing convergence of telecom and satellite tv for pc, GSMA Intelligence has put out its first quarterly tracker targeted 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, by distribution agreements. These partnerships cowl about 5 billion cell subscribers globally (or about 60% of cell customers), based on GSMA Intelligence, and embody 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 considered 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 cost-effective manner of extending terrestrial networks to areas that may be unaffordable utilizing purely land-based community extension.

“We’ve gotten to about 90 % inhabitants protection, [for] 3G/4G now, however the remaining 10%, economics turn into prohibitive with out various 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 supplies a “way more of a viable path to beforehand untapped revenues within the shopper and B2B dimensions. So, that’s bringing individuals onto the cell community and the web who haven’t been there earlier than, notably in locations like Africa, elements of India, however even in elements of Europe, the U.Ok. and the U.S.” Hatt stated there may be identified demand for roaming companies on the patron facet, but additionally IoT connections for corporations reminiscent of utilities or oil and fuel suppliers with operations in disparate areas that usually fall exterior of terrestrial protection. The mixture of serving each shopper and B2B segments, he added, affords each telcos and satellite tv for pc corporations “a path to new revenues and filling a problem that has been long-running, when it comes to reaching areas that had 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 turn into enshrined in 3GPP, which implies that now you’ve a scale economic system that handset producers and chipset gamers can construct off and tailor their system 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 individuals as a result of it prices cash and it worsens the standard of the sign that you simply 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 associated fee construction appears 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 type of take a look at that mannequin and see they need to be listening to that. As a result of it may possibly attain each customers and companies, and I feel loads of cell operators are eager to try this.”

Hatt informed RCR Wi-fi Information that there’s a short-term view and a longer-term view when it comes to the enterprise case for NTN, and what number of gamers it’d be capable of assist, notably on the satellite tv for pc facet.

“Within the brief time period, I feel competitors goes to remain very vibrant. There’s loads 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 imagine within the progress story,” he defined. The GSMA Intelligence tracker, he stated, signifies that there are a major share of world cell subscribers—40%—who should not but coated by satellite-based companies. “There’s nonetheless loads of headroom to maneuver into,” Hatt stated, and the constellations that will competitively serve these potential prospects are nonetheless being developed and put in place, however gained’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: The usage of cell satellite tv for pc spectrum, or reuse of terrestrial spectrum. “If these two fashions co-exist, there’s much less cause for consolidation general. If one begins to be favored over one other, then I feel that augers in the direction of some mixtures,” Hatt stated.