In the quest for optimal global connectivity, low Earth orbit (LEO) satellites are increasingly becoming an essential infrastructure component for bridging the digital divide, processing real-time data applications, and strengthening economic resilience across industries, including aerospace, defense, telecom, climate and agriculture, oil and gas, and more.
The demand for digital services and high-speed internet connectivity requires overcoming infrastructure limitations, such as inaccessible terrain where terrestrial network deployments are challenging. In this scenario, LEO satellites serve as a perfect solution.
LEO satellites, usually operating at altitudes of 300-2,000 km (186-1243 miles) above the Earth's surface, are advantageously cheaper as they are smaller and provide more efficient transmission with designated ground transceivers than GEO or MEO satellites, which are placed in higher orbits.
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LEO Landscape
Leading the race in LEO satellite placement is tech entrepreneur Elon Musk’s company, Starlink, which aims to provide global mobile broadband and “rebuild the internet in space” as part of its operations. As of September 2024, the Starlink constellation consists of over 7,000 mass-produced small satellites in low Earth orbit. Moreover, 12,000 satellites are in the pipeline for deployment, which could expand to 34,400 in the future as per recent industry news.
Recently, Chinese company, Geespace, launched a third batch of LEO satellites in response to Starlink’s operations. This launch forms part of the company’s first construction phase for its constellation, which aims to place 72 satellites in orbit to service over 200 million users worldwide by the end of 2025. In the pipeline for such constellations are Amazon’s Kuiper, Canada’s Telesat and direct-to-cellular satellite operations from Globalstar/Apple, AST SpaceMobile, Iridium, and Lynk.
In August 2024, the UAE’s flagship satellite solutions provider, Al Yah Satellite Communications Company (Yahsat), and AI-powered geospatial solutions provider, Bayanat, successfully launched their first LEO Synthetic Aperture Radar (SAR) satellite into orbit, in partnership with ICEYE, a pioneer in SAR satellite operations for Earth observation, persistent monitoring, and natural catastrophe solutions.
Moreover, Space42, a recently completed joint venture between Yahsat, Thuraya, and Bayanat, aims to become a global player in satellite-based, direct-to-device (D2D) activity. The joint venture also aims to launch a potential LEO constellation, which is expected to generate USD 7.1 billion in revenue by 2030.
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Pressures Facing LEO Satellites
“The satellite communications market is a very competitive and difficult market to be profitable in," noted Gareth Owen, Associate Director at Counterpoint Technology Market Research. "There are simply too many systems chasing a limited market opportunity. As a result, every satellite operator will do whatever they can to impede or delay the entry of a competitor."
The many satellites that are currently being launched are already facing a myriad of concerns. One of the prominent problems is the accumulation of space debris due to inactive or defunct satellites left in orbit, posing the risk of collisions with floating satellites. Moreover, the overtly brilliant reflection interferes with ground-based observations using telescopes. So much so, that astronomers are experimenting with satellite constellation simulations to better understand the effect thousands of additional satellites will have on astronomy at optical and radio wavelengths.
Additionally, LEO satellites have a shorter life span than their GEO equivalent, with a typical lifespan of 7-10 years. Operating LEO satellites tends to be more expensive in terms of the number of satellites needed and the frequency of replacement. Moreover, LEO satellites orbit the Earth at a speed of 7.8 kilometers per second with a high chance of range instability, unlike GEO satellites, which are more stable. For this reason, LEO satellites need large constellations to provide uninterrupted transmission coverage. This concern is of prime importance. As the number and size of satellite constellations grows, the area needs to be managed efficiently to ensure sustainable operations. Given the demand for low-latency transmission from LEO satellites, many nations will strive to secure their position in this global connectivity race. As such, a steep and competitive supply chain market lies on the horizon, further aggravated by a high recession-ridden global economy and volatile geopolitical environment.
Furthermore, the radio spectrum and orbits around the Earth are finite resources and warrant international cooperation among governments, globally accepted regulation, and structured coordination among radio and satellite operators worldwide. Satellite communication operators must navigate complex national and international regulations to secure fundamentals such as landing rights, service licenses, ground equipment, and ground station gateway licenses from individual regulators across the globe. Reaching such agreements is easier said than done as evidenced by the success of only two operators—Starlink and OneWeb—in the global market.
Read More: The Connectivity Race: LEO Satellite Providers Take On Telcos
Subsea Challenges
LEO satellite services primarily focus on addressing consumer broadband and maritime connectivity. As such, it competes with the efficiency of submarine cable networks. Undersea fiber optic cables transport 98% of global digital data, ranging from “streaming videos and financial transactions to diplomatic communications and essential intelligence," according to the U.S.-based Center for Strategic and International Studies (CSIS).
Notably, subsea cables offer higher bandwidth capacity compared to satellites, making them suitable for high-volume data transmission and bandwidth-intensive applications, covering a wide range of industrial sectors that require ubiquitous connectivity.
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Telcos and LEO
Telecom operators stand to gain from satellite communication by providing direct satellite connectivity to regular smartphones as well as IoT applications through direct-to-device (D2D) technology. This connection allows mobile phone users to switch from 4G/5G mobile networks to satellite connectivity for uninterrupted coverage.
Moreover, given the adoption of autonomous operations and AI applications in various industries, satellite communication provides diverse connectivity options for industrial use cases. To cash in on these opportunities, it is imperative for both telcos and satellite operators to enhance the interoperability of their networks to achieve efficiency in connectivity.
To support the cohesion between telcos and satellite operators, several technology companies are offering their solutions. For instance, leading software company, Netcracker, is helping satellite communication providers launch multi-orbit satellites through its Digital Satellite Solution. Powered by AI, the solution aids satellite operators by providing optimal digital engagement for its customers, helping satellite operators to integrate their offerings with that of telcos.
Similarly, integrating satellites with 5G infrastructure improves the Quality of Experience (QoE) of high-capacity applications, improving the resilience of each network. Nokia is partnering with operators to enable 5G connectivity directly via satellites, ensuring that devices can access the network even in remote or underserved areas with limited traditional coverage. This collaboration aims to make high-speed, reliable 5G services accessible to everyone, regardless of their location. Nokia is playing a leading role in the standardization of non-terrestrial networks (NTNs), ensuring robust interoperability and connectivity between cellular connections and satellite communications.
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The Need for Conducive Collaboration
Despite the seemingly tangible challenges, the ebbing cost of satellite launches and advancements in chipset technology is making NTNs a more cost-effective solution for telcos to provide coverage across land, sea, and air. However, these potential opportunities require collaborative efforts to harness the strength of satellite and cellular technologies to create robust connectivity networks suitable for the growing demands of our globally-connected society.
Although satellite technology has been around for over 30 years or so, LEO has ushered the communications industry to the edge of the connectivity revolution. Despite its challenges, the LEO satellite industry’s success will depend on strategic investments and robust regulatory support from respective governments and industry stakeholders. These collective efforts, bolstered by integrations with other communications technologies, will illuminate the path to a globally connected future.
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