But the wider question remains whether IoT over satellite will remain a separate market
Telefónica has successfully tested satellite coverage extension to its cellular network through standard GSMA roaming. In a test witnessed by the European Space Agency (ESA), Telefónica Tech and Telefónica Global Solutions utilised Sateliot’s low Earth orbit (LEO) 5G IoT constellation to demonstrate that a standard roaming connection can be authenticated by the Telefónica core through Sateliot networks.
Starting in 2024, Telefónica aims to be the first MNO to provide to its customers with a NB-IoT everywhere-in-the-planet connectivity through a seamless combination of cellular and satellite standard NB-IoT network and with inexpensive commercial standard NB-IoT devices.
The companies used a regular SIM card provisioned on the Kite platform of Telefónica Tech on an IoT cellular device, seamlessly switching it to satellite. The test showed that a standard roaming connection can be authenticated by the Telefónica core through Sateliot networks.
Sateliot’s patented “store & forward” two step authentication method was also successfully tested. The technology lets a satellite store data when it is out of contact with a ground station, forwarding the data when it comes back into coverage – important when a satellite constellation is still small and IoT applications are delay tolerant.
“This is a very important milestone for the industry in which Telefónica natively integrates the satellite network with the NB-IoT networks of Telefónica and Kite, the managed IoT connectivity platform developed by Telefónica Tech with which the customer can control and monitor their power lines in real time and remotely from anywhere in the world through a web portal or via APIs,” said Telefónica Tech technology & technical operations director of IoT and Big Data Carlos Carazo.
“We are in front of a game changer in future 3GPP networks that will reduce costs based on low density constellations and reduced ground segment infrastructure, minimizing the impact in space and reducing time to market,” said Sateliot CTO Marco Guadalupi. “The IoT industry is clearly headed toward the standard, and we are thrilled to enable it.”
The ESA’s head of space for 5G and 6G strategic programme Antonio Franchi added that the “store & forward” test along with the two-step authentication into a 5G cellular network marks a “disruptive advancement in the realm of standard satellite IoT services.”
The Earth is really big
Sateliot’s approach, and its backing, suggest the company has a way to overcome a lack of ground infrastructure faced by all satellite IoT startups. Space is expensive and IoT services are very low margin making each business case more difficult.
Last week, Luxembourg-based and Australian Securities Exchange-listed IoT satellite startup ran out of cash and filed for bankruptcy. The company had earlier revealed it had problems with a couple of the satellites it had launched and had to write them off.
Another high-profile satellite provider Swarm – which was acquired by SpaceX in 2021 – told customers it will no longer be selling new devices. The move is directly related to SpaceX’s plans to expand into mobile connectivity.
Last summer, SpaceX and T-Mobile said they would launch a new service aimed at providing Starlink service to devices on T-Mobile’s network. SpaceX recently announced direct-to-cell partnerships with Optus in Australia and Rogers Communications in Canada
Swarm co-founder Sara Spangelo moved into SpaceX to run these operations but the wider IoT support in this deal means Swarm’s separate low-power satellite IoT network makes less business sense. Swarm has said that it will continue to support ongoing VHF communications between Earth and space using its existing satellite constellation for now.