TLDR version: Starlink’s growth has attracted attention in recent months for its implications for the NBN Co and Chorus. But the use of satellite for voice and IoT data also has big implications, particularly for mobile competition. The result will be the erosion of IoT network differentiation, and the expansion of IoT options for remote transport, mining, and agricultural applications.

5G compatibility supercharges LEO satellite potential

One of the most disruptive developments in LEO satellite is the emergence of satellite networks that support 5G connectivity natively.

Lynk Global claims to have the only patented and proven satellite-direct-to-standard-phone system. That will change as every LEO satellite operator knows that voice (and text) communications are required to offer a complete service suite to consumers and business. Most systems have already flagged their intention to add voice, which will require 5G technology.

In the IoT area, Barcelona-based Sateliot launched its first 5G NBN-IoT microsatellite on 15 April. The 10-kilogram orbital data relay (called Sateliot_0) communicates with terrestrial towers to close coverage gaps worldwide. The company plans to launch 250 satellites for global coverage, and partners with IoT network operators seeking national coverage. The company already claims one hundred mobile partners and has also partnered with AWS to offer its service as a platform.

These 5G LEO systems offer major opportunities, including:

• Service diversity: these satellites can support all of the services 5G terrestrial networks can support, including voice and IoT
• Redundancy: 5G LEO satellite services can provide a redundant communication network that can integrate more easily with traditional 4G/5G terrestrial networks
• Global coverage: 5G LEO satellite services can provide global coverage, enabling users to stay connected in nearby seas, and even when traveling to different countries or regions. This is important for applications such as aviation, maritime, and transportation
• Security: 5G LEO satellite services can leverage secure 5G encryption that is less susceptible to cyber-attacks and eavesdropping
• Low-cost devices: 5G LEO satellite services can support off-the shelf 5G cellular or NB-IoT This avoids the need for expensive proprietary technologies.

5G LEO satellite is not a perfect substitute for terrestrial networks as it lacks in-building coverage, but for outdoor applications it holds great promise.

Why does this matter?

5G satellite communication will allow Australian and New Zealand mobile providers to offer connectivity in hard-to-reach areas. To date, lack of traditional mobile coverage has restricted the use of voice communications and of remote telemetry. LEO satellites are an effective option for narrow band connectivity in these remote areas. Interoperability with 3GPP protocols means that satellite access is democratised.

Governments in both Australia and New Zealand have invested significant sums in improving mobile connectivity. Advancements in LEO satellites and their interoperability with 5G smartphones and IoT devices will change the dynamics of this market. It will reduce the coverage advantage of Telstra and Spark New Zealand over their competitors and alleviate the pressure on government subsidy for addressing mobile blackspot areas. It will support efforts by mobile operators to promote NB-IoT over competing technologies like LoRAWAN. It could also lead to rethinking of the need for some 5G investments in rural areas and transport corridors.

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