Sateliot, a satellite communications provider based in Spain, has successfully launched its first low-earth orbit (LEO) satellite. This marks the first step towards its plan to eventually have 250 satellites in orbit to support 5G-based narrowband IoT (NB-IoT) connections. The 22-pound device was launched aboard a SpaceX Falcon 9 rocket that took off from Vandenburg U.S. Space Force Base in California. Once active, the satellite will be able to provide 5G coverage across more than 800,000 square miles.
The satellite can support NB-IoT connections using 3GPP’s Release 17 non-terrestrial networks (NTN) specification. This specification allows the satellite to communicate with ground-based 5G devices, with a focus on IoT connectivity. Sateliot CEO and Founder Jaume Sanpera explained that Sateliot would act as a service wholesaler with its constellation operating as a “coverage extender” for operators through a “single roaming agreement.” The company plans to launch four more satellites this year, with the goal of having 64 satellites in space by the end of 2024, on its way to a “full constellation” of 250 satellites in orbit by the end of 2025.
Sateliot has already signed deals with several operators and entities, with more than $1.3 billion in its sales pipeline. The company expects to hit more than $1 billion in sales and more than $380 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) by 2026. Its highest-profile deal is with Spain-based telecom giant Telefónica to develop services for the operator’s managed IoT platform.
In addition, Sateliot has announced several other partnerships, including one with power grid solution company Sentrisense to support smart power line infrastructure. The deal will connect sensors to Sateliot’s NB-IoT constellation for data retrieval, even when they are out of reach from terrestrial connection points. This followed a deal with IoT provider Sensefinity to help prevent cargo damage and a deal late last year with South Africa-based Streamline to offer livestock tracking management services.
The market for LEO-based satellite services is predicted to generate $141 billion in service revenues by 2030. ABI Research cited market opportunities like IoT, backhaul, commercial broadband, and mobile satellite services. “The market is evolving quickly, and many services are finding enhanced deployment through strategic alliances and increased bandwidth supply in LEO,” noted Jake Saunders, VP of Asia Pacific and research director for ABI Research’s satellite communications service. “While these services are still in their early stages, there is evidence that they will find momentum as smartphone technology begins to peak, sales taper off, and new revenue streams grow in demand. To this end, the market is revealing new development paths that will influence the market.”
