Orange Business to offer hybrid private 5G in France


News

The standalone 5G (5G SA) solution will allow devices to connect to both private and public networks simultaneously using a single SIM card

Orange Business has announced the launch of a new hybrid private mobile network solution, allowing simultaneous access to a private network deployed by Orange as well as the company’s public commercial network.

The “two-in-one” 5G SA solution uses a router from Cradlepoint that connects to both networks and directs data flows to the desired network based on the application or use case.

The solution also relies on network slicing, edge computing, and local break outs across the overlapping public and private 5G networks to ensure network security and guaranteed low latencies.

The solution has been successfully tested at Orange’s facilities in Arcueil, Paris.

Orange says that the hybrid network will have many uses, particularly in industrial settings, where it can be used to connect industrial equipment, objects, smartphones, tablets, human-machine interfaces, or even autonomous vehicles.

As well as providing secure connectivity for a site’s critical activities, it will also allow for connection to subcontractors and remote sites, host third parties, and provide coverage for users beyond the site’s boundaries, such as forklift drivers and freight travelling by road, river or rail.

“Companies in all sectors face modernization, competitiveness and resilience challenges. The evolution of existing networks towards a hybrid private model promises major benefits in terms of production optimization, improvement of the experience of actors in the field and technology management. Orange mobilizes its dual expertise as operator and integrator to support its customers in their transformations,” explained Valérie Cussac, Orange Business’s Senior Vice-President of Smart Mobility Services (statement translated from French).

Earlier this year, Orange announced the launch of a 5G SA network in Spain, but in other markets, including France, the company has yet to make the upgrade to the more advanced technology.

What impact will the arrival of standalone 5G have on the wider telecoms ecosystem? Join the operators in discussion at this year’s live Total Telecom Congress

Also in the news:
EU and Japan sign deals for subsea cables and semiconductors
Home Office lambasted over Emergency Services Network delays
Ofcom probes VMO2 as customers complain about contract cancellation

EU and Japan sign deals for subsea cables and semiconductors


News

The partnership will enhance collaboration on digital issues to strengthen supply chains and reduce reliance on China for key technologies

Following the first Japan–EU Digital Partnership Council meeting held last week, Japan and the EU have signed two Memoranda of Cooperation (MoC) to advance work in crucial areas in connectivity.

As part of the deal, the two parties plan to support the development submarine cable connectivity via the Arctic, which will provide secure, reliable, and sustainable connectivity between the EU and Japan. If successful, there is possibility for these submarine networks to be extended to a wider parts of Southeast Asia and the Pacific.

The partners also signed a second MoC on semiconductors, focusing on enabling greater cooperation on R&D, advancing skills for the semiconductor industry, and subsidy transparency. The partnership will also see the formation of an early warning system for supply chain disruption, allowing each nation to better prepare for shortages should they occur.

The subtext to this agreement is the perceived need to build self-sufficiency and diversity in the global semiconductor supply chain, with both parties increasingly wary of their technical reliance on China for chip manufacturing.

“Economic security is a common concern for Japan and the EU. We share similar dependencies, and we both need to de-risk our supply chains. One of our objectives is to reduce overreliance for products that are vital for our economies, like critical raw materials and semiconductors on a handful of suppliers – many of them based in China,” said President of the European Commission, Ursula von der Leyen.

Additionally, the EU and Japan have agreed to enhance cooperation on several other, wider issues, such as generative artificial intelligence, quantum computing, data governance, and cyber security.

The co-chairs of the Japan-EU Digital Partnership Council are set to meet again in 2024 to reviews the progress of the deal.

Join in the conversation about digital security at this year’s Total Telecom Congress live from Amsterdam

Also in the news:
Connectivity between Iceland and Japan through new Pan-Arctic Fibre cable
Construction begins on Medusa submarine cable system
What’s hot in the submarine networks industry today? 

Friday Financial Roundup


News

A summary of all the essential financial news in the telecoms world 

Ericsson’s Q2 sales drop 

In a recent financial report, Swedish telecoms equipment vendor Ericsson noted that while the company’s net sales were up 3% from last year, to SEK 64.4 billion $6.3 billion, the company’s Q2 sales had fallen. The company’s organic sales fell by 9% in Q2 and EBITA halved from SEK 7.5 billion ($730 million) to SEK 3.7 billion ($360 million).  

Network sales fell by 13%, despite vast sales improvements in Oceania, Southeast Asia, and India, where the company now has a leading market share. The steep fall in North American sales was not offset by the improvements in Eastern markets. 

The tech giant cited the knock-on effects of high inflation and rising interest rates for their falling sales. 

Indeed, Börje Ekholm, President and CEO of Ericsson, noted the challenging market conditions, stating “performance in Q2 was in line with our expectations, despite the uncertain macro backdrop and significant changes in market mix.” 

“The firm forecasts similar outcomes for Q3 and hopes for improvements by the end of the financial year: Q3 will benefit from an early impact of our strong focus on cost-out execution. Overall, we thus expect Q3 EBITA margin to be in line with or slightly higher than Q2, followed by a seasonally stronger Q4,” he added. 

“Based on the expected recovery of the mobile networks market towards the end of the year, we remain focused on reaching the lower end of the 15-18% EBITA margin long-term target range in 2024.” 

After the report’s release this morning, Ericsson’s shares were down 8%. 

 

Nokia reduces annual sales forecast 

Nokia is one of many companies feeling the effects of slower consumer spending and a reduction of consumer inventory levels, because of rising interest rates and high inflation. 

In an effort to combat this, the firm has lowered their net sales forecast from €24.26–26.2 billion to €23.2–24.6 billion. They have also narrowed their operating margin from 11.5–14% to 11.5–13%.  

The company commented that that “Nokia will continue to take measures to ensure it remains on track towards its long-term targets of growing faster than the market and delivering a comparable operating margin of at least 14%.” 

Despite the announcement, the firm still expects net sales of £4.8 billion this quarter. 

Since the news, Nokia’s shares were down 9.6%, the lowest since April 2021. 

 

Cisco suffers from Bank of America downgrade 

This week, Bank of America analysts lowered Cisco Systems share rating from ‘buy’ to ‘neutral’.  

“Street estimates are looking for a soft landing to Cisco’s product revenue growth, expecting it to grow 3% year-over-year in fiscal 2024 and 2% in fiscal 2025, after (estimated) growth of 13% in 2023 and 6% in 2022,” noted Bank of America analyst Tal Liani, who is responsible for the stock’s downgrade.  

He added: “However, these estimates lead to fiscal 2024/2025 product revenues that are much higher than historical levels. Since fiscal 2012, Cisco’s product revenue has remained at around a $36 billion to $39 billion range, mostly attributed to the timid growth of Cisco’s legacy products. It appears that the analysts deem the expected revenue too high, and therefore too much of a risk. The downgrading of the stock is a reflection of these concerns. 

Cisco shares dropped by 18% on the news. 

 

Huawei seeks to increase intellectual property revenue 

The firm, which made $560 million from licensing last year, is looking to increase total in 2023, this week releasing new royalty rates. 

Huawei’s smartphone revenue has taken a huge hit since US sanctions began in 2019, thus increasing revenue from other streams is now increasingly important. 

The new rates will apply to a number of Wi-Fi 6 devices, IoT products, and 4G and 5G handsets. The royalties for Wi-Fi 6 consumer devices is $0.5 per unit, while the rate caps for 4G and 5G handsets are $1.5 and $2.5 per unit, respectively. For IoT, the standard rate is 1% of the net selling price, capped at $0.75, while ‘IoT-Enhanced devices’ range from $0.3 to $1 per unit. 

Huawei currently has nearly 200 patent licensing deals, which it hopes to increase in the future. The company is the one of the largest patent holders in the world, with only IBM, Samsung, and Taiwan Semiconductor Manufacturing Company (TSMC) holding more patents as of 2022. 

 

Home Office lambasted over Emergency Services Network delays


News

A report from the Commons Public Accounts Committee (PAC) said the Home Office still had no “realistic plan” for the new Emergency Services Network (ESN), with the delay costing the UK’s emergency services millions of pounds every year

The government’s plan to create the new 4G-based ESN was first announced in 2015, initially aiming to launch the system in 2017 and completely replace the existing Airwave network by 2019. At the time, the project was expected to cost around $5 billion.

However, progress on the ESN has been glacial. Eight years have passed, and the government still does not know when the system will be in place, with some reports estimating it will not be operational until 2029.

The government has reportedly spent around £2 billion so far on developing the ESN with no tangible progress, while the initiative’s projected budget has swelled massively to over £11 billion.

Today, the PAC has announced the results of its fourth inquiry into the ESN’s delays, being highly critical of the lack of progress or planning on the part of the Home Office.

“The ESN project is a classic case of optimism bias in Government,” said the committee chair Dame Meg Hillier. “There has never been a realistic plan for ESN and no evidence that it will work as well as the current system.”

“Assertions from the Home Office that it will simply ‘crack on’ with the project are disconnected from the reality, and emergency services cannot be left to pick up the tab for continued delays. With £2 billion already spent on ESN and little to show for it, the Home Office must not simply throw good money after bad,” she added.

The report itself detailed the costs the UK’s emergency services are facing in keeping the existing Airwave system running.

The ambulance service said it had spent £9.5 million towards making the transition, while the fire service had spent £6 million, along with an additional £2 million for early versions of the ESN which had since been replaced.

The police force, meanwhile, estimated that purchasing additional Airwave devices had cost them £125 million since 2018 and would cost them a further £25 million by 2026.

It is worth noting here that Airwave’s parent company, Motorola, was originally contracted to help deliver the ESN itself, but withdrew from the project at the end of last year. The US-based mobile device company seemingly feared that it would be forced to sell Airwave by the UK Competitions and Markets Authority (CMA), after a recent CMA consultation estimated that Motorola stood to make excess profits of £1.3 billion from the Airwave system over a decade.

The Home Office is now in the process of finding a new supplier to replace Motorola.

The PAC closed their report by recommending the Home Office appoint an Independent Assurance Panel to oversee progress on ESN. The Home Office has until the end of the year to produce a suitable outline for the ESN project and must create a new business case in Q1 2024.

How is the UK telecoms market evolving in 2023? Join the operators in discussion at this year’s Connected Britain conference

Also in the news:
Netomnia passes half a million premises with full fibre
Telefónica sells majority share of Peruvian fibre network to KKR
5G NTN-mobile market revenue to hit $18bn by 2031

Ofcom probes VMO2 as customers complain about contract cancellation


News

The regulator is aims to ensure that Virgin Media O2 (VMO2) customers are not being disincentivised from changing to another service provider due to onerous termination procedures

Today, UK telecoms regulator Ofcom has announced an investigation into Virgin Media O2 following complaints from customers about the company’s cancellation practices.

Ofcom rules require that VMO2 ensure that the conditions or procedures for contract termination do not act as disincentives for customers against changing their communications provider.

Customer complaints made to the regulator, however, spoke of the difficulty in cancelling their contract, noting trouble connecting to an agent on the phone, calls dropping during conversation staff, and being placed on hold for long periods of time. Others also complained that they had made repeated attempts to cancel after their initial requests were not actioned.

The announced investigation will seek to verify the legitimacy of these complaints, as well as assessing whether VMO2 had made it clear to customers that they could take disputes to an independent ombudsman after eight weeks if their complaints had not been satisfactorily resolved.

If found to be in breach of Ofcom’s rules, VMO2 is likely to face a fine and instructions to change its procedures where appropriate.

“Our rules are there to protect people and make sure consumers can take advantage of cheaper deals that are on offer. That’s particularly important at the moment as households look for ways to keep their bills down,” said Ofcom’s chief executive Dame Melanie Dawes, Ofcom’s Chief Executive. “We’re taking action today, on behalf of Virgin Media’s customers, to investigate whether the company is putting unnecessary barriers in the way of those who want to switch away.”

In it’s online statement, Ofcom noted that VMO2 scored below average for call waiting times and satisfaction with complaint handling in their annual customer satisfaction report.

In a statement, VMO2 defended itself, said it is “committed to providing our customers with excellent service” and pointing out that complaints related to customers having difficulty leaving their contracts have halved over the past year.

It is worth noting here that the UK’s ISPs are currently wrestling with instructions from Ofcom to implement One Touch Switching (OTS), a system that would theoretically allow customers to jump from one network to another at the click of a button.

Ofcom made the decision to introduce OTS back in September 2021, saying it would to allow customers to switch ISPs quickly and painlessly, as well as helping them avoid paying for two services simultaneously during the transition period between two services.

However, implementing OTS across all of the UK’s broadband networks is a significant technical challenge, hence the regulator gave the nation’s ISPs until 3 April 2023 to make the requisite arrangements.

Unfortunately, it soon became apparent that this deadline was overly ambitious, with estimates suggesting an industry co-developed OTS platform would not be ready for service until 2024. The April deadline came and went without OTS being implemented, with Ofcom subsequently launching an investigation into the industry’s failure.

Once OTS is finally implemented, it is likely that a large portion of the complaints for which VMO2 is currently being investigated will be a thing of the past. How long consumers will have to wait for these capabilities, however, remains to be see.

Will OTS have a major impact on the dynamics of the UK ISP sector? Join the operators in discussion at this year’s Connected Britain conference

Also in the news:
Netomnia passes half a million premises with full fibre
Telefónica sells majority share of Peruvian fibre network to KKR
5G NTN-mobile market revenue to hit $18bn by 2031

UK Space Agency to invest £20m in aerial connectivity projects


News

According to the government, funding could cover everything from high altitude platform stations (HAPS) to delivery drone management technology

This week, the UK Space Agency has announced £20 million in funding aimed at supporting the development of aerial connectivity projects.

Companies can submit applications for funding under three categories – drones, HAPS, and High-Altitude Long Endurance (HALE) unmanned air vehicles.

Projects could include, but are not limited to, “aerial platforms with hybrid capabilities that can seamlessly switch between satellite and terrestrial networks, or traffic management for innovative vehicles such as electric vertical take-off and landing (eVTOL) aircraft”.

Possible applications include drones delivering medical supplies, the rapid deployment of dedicated emergency services communications, and delivering broadband connectivity to rural customers.

“From using drones to quickly get medicines to hospitals, through to boosting mobile network access in remote areas, the benefits of aerial connectivity cut through many aspects of our lives,” said UK Technology Secretary Chloe Smith. “The Government’s £20 million investment will further strengthen the UK’s fast-growing satellite communications industry, which already contributes more than £10 billion to our economy and supports over 26,000 jobs. It will improve our health and security, too, and support our plan to level up every part of the UK.

The funding comes as part of the European Space Agency (ESA)’s Advanced Research in Telecommunications Services (ARTES) programme, in which the UK is a major investor. In November 2022, the UK government committed £190 million to the programme, pledging to further develop the country’s growing satellite industry and promote the creation of new aerial connectivity technologies.

The first £50 million of this funding was made available to applicants by the government earlier in the year, targeting related projects in the satellite communications industry.

The UK is not alone in its interest in non-terrestrial connectivity. In related news, today the GSMA announced a new Memorandum with Understanding (MoU) with the ESA, aiming to explore greater collaboration between the satellite and mobile industries to better develop network technologies. The agreements initial focus will be on accelerating the integration of satellite communications with terrestrial 5G and, in the future, 6G networks.

“By collaborating more closely with the European Space Agency, and its satellite network operator ecosystem, we hope to accelerate the immense potential satellite and terrestrial telecommunications networks can create for consumers and businesses when they are more closely connected,” said Alex Sinclair, Chief Technology Officer at the GSMA. “By working together, we can help the communications industry bring innovative solutions to market, which in turn will create tremendous benefits to society by connecting even more people, wherever they are in the world.”

How is the UK’s growing satellite communications industry reshaping the nation’s telecoms sector? Join the operators in discussion at this year’s Connected Britain conference

Also in the news:
Netomnia passes half a million premises with full fibre
Telefónica sells majority share of Peruvian fibre network to KKR
5G NTN-mobile market revenue to hit $18bn by 2031

MNOs begin EU Digital ID trial


News

The trial will see Deutsche Telekom, Telefónica and Vodafone test the EU’s digital identity wallets during SIM activation, in anticipation of broader usage 

This week, Germany’s three mobile network operators have announced their participation in a new EU trial seeking to further the development of mobile wallets for digital identities. 

The scheme is being carried out by the EU consortium ‘POTENTIAL’, the largest of four consortia currently operating pilot programmes aiming to provide each EU citizen with control over their online data through a secure digital identity, which can be used throughout the bloc. 

The consortium’s 148 partners are trialing various digital ID projects in 19 countries, including using the IDs for opening bank accounts and obtaining digital drivers licenses. Testing for online citizen services and electronic signatures are reportedly ongoing. 

For the trio of mobile network operators involved, their own pilot project will involve enabling consumers to use their digital IDs to activate SIM cards. This, they say, will both serve as a proof of concept and theoretically help to reduce digital identity fraud. 

The testing will take place in Germany, France, Austria, Poland, Netherlands, Greece, and Ukraine. 

The current methods of online self-identification are often criticised for being too costly and insecure. As a result, the EU is beginning to introduce new technical conditions to ensure digital identities are secure based on new Electronic Identification and Trust Services (eIDAS) regulations which recently came into effect. 

“Every time a website asks us to create a new digital identity or conveniently log in via a large platform, we actually have no idea what is happening with our data. This is why the Commission will soon propose a secure European digital identity. One that we trust, and that citizens everywhere in Europe can use to do everything from pay taxes to rent a bike. A technology with which we ourselves can control what data is used and how,” said Ursula von der Leyen, President of the European Commission. 

“A digital identity can only bring value when people actually use it. And they will do so when they can trust the application and it is made easy to use. This is what we are supporting with our participation in the EU project ‘POTENTIAL’. So that digitalisation becomes accessible everywhere and for everyone. Whether at home, on vacation or on business trips,” added Michael Jungwirth, Director Public Policy & External Affairs at Vodafone Germany. 

‘POTENTIAL’ is expected to report on the results of the various trials in September, which will then be used to develop a roadmap to see the digital IDs rolled out throughout the EU by 2025.  

Join in the conversation about digital security at this year’s Total Telecom Congress live from Amsterdam 

Also in the news:
Nokia and Proximus team up for Europe’s first hybrid quantum encryption key trial
EU fines Meta €1.2bn over transfer of data to US
Samsung bans staff from using generative AI after data leak 

 

 

Vodafone warns of investment cuts if Three merger is blocked


News

Vodafone CEO Ahmed Essam has warned that if the Vodafone–Three merger is stopped by the Competition and Markets Authority (CMA), vital investments in digital UK infrastructure will be prevented

This week, the head of Vodafone UK has stressed to regulators that the planned merger between Vodafone and Three will be critical to achieving the government’s 5G rollout targets. CEO Ahmed Essam told The Times that if the deal is blocked the group “won’t be able to invest as much, and we won’t be able to deliver the 5G ambition that’s coming in the wireless infrastructure strategy from the government.”   

The government’s Wireless Infrastructure Strategy, published in April, set out a plan for the UK to bring world-class digital infrastructure to the entire UK, aiming to provide nationwide coverage of standalone 5G to all populated areas by 2030 

Vodafone and Three signed a formal £15 billion merger agreement last month, a deal that will see the newly combined company majority-owned (51%) by Vodafone, with Three UK’s parent company, CK Hutchison taking the remaining 49%. No cash will be exchanged under the agreement. 

If approved, the newly merged group will become the largest mobile network operator in the UK, surpassing both Virgin Media O2 and EE, with more than 27 million customers. 

The deal will see the two companies invest £11 billion in UK mobile infrastructure. This includes promises to reach 99% of the UK with their newest 5G standalone network by 2034 and offering fixed wireless access to 82% of UK households by 2030. 

“As a country, the UK will benefit from the creation of a sustainable, strongly competitive third scaled operator – with a clear £11bn network investment plan – driving growth, employment and innovation,” said Vodafone Group Chief Executive Margherita Della Valle. 

“The combination of Three UK and Vodafone UK will bring the advantages of 5G to every business and household in the UK, enabling the UK to deliver its ambitions for digital and economic growth and fully supporting the UK Government’s objectives for a world-leading digital economy,” added Three UK CEO Robert Finnegan. 

However, critics have warned against the monopolistic nature of the merger, which they argue will lead to higher prices and job cuts. They point to similar mergers in other markets, such as Vodafone Hutchison’s combination with TPG in Australia in 2020, which saw prices increase for customers and investment in the sector decrease, according to research from trade union Unite. 

As a result, the CMA and other regulators are expected to take a largely skeptical view of the deal and are likely to impose stringent conditions on the duo before agreeing to give the deal the green light. These conditions could involve anything from forbidding the company from hiking prices for a number of years to divesting of spectrum – a commodity in which the newly merged entity will hold a major advantage over rivals.  

How will the merger play out? It is sure to be a hot topic for discussion at Connected Britain this September – get your ticket today! 

Also in the news:
Voda – Three – well that’s just great…
Orange facing bumpy regulatory road to Masmovil merger
Orange-MásMóvil merger may reduce competition in Spain, says European Commission 

Telefónica sells majority share of Peruvian fibre network to KKR


News

Telefónica has sold a 54% stake in its Peruvian network to US-based investment firm KKR and 10% to Entel Peru, retaining a 36% share  

In an effort to reduce debt and fund investment to build 5G mobile networks, Telefónica, one of Spanish America’s largest telecommunications firms, has recently made a sequence of asset sales in order to focus on its core businesses in Spain, the UK, Germany, and Brazil. As part of this move, in 2021 The El Salvador unit was sold to General International Telecom for $144 million, followed by Liberty Latin America’s acquisition of the Costa Rican unit. 

The value of the deal has not been disclosed, although Telefónica noted that it would cut the company’s debt by €200 million. A close banking source to the deal estimated that, including debt, the transaction valued 100% of the unit at around €550 million. 

As part of a wider deal, KKR has also purchased majority interest in PangeaCo and the existing fibre optic networks of Entel Peru, combing their fibre assets with those of Telefónica Peru to build the country’s first nationwide open access wholesale fibre company, ‘ON*NET Fibra de Perú’.  

KKR will own a controlling 54% stake in the business, Telefónica Hispanoamérica will own 36%, and Entel Perú will own 10%. Telefónica and Entel will serve as anchor tenants of the new network. 

KKR added that they plan to invest an additional $200 million to grow Peru’s digital infrastructure to more than double the size of the existing fibre optic networks, to which currently less than 35% of the population have access, to reach 5.2 million homes passed by the end of 2026. 

As always, the transaction will be subject to the typical regulatory approvals.  

The creation of ON*NET Fibra de Perú follows the pattern of similar model to that KKR has employed with Telefónica and Entel in other markets in recent years. In 2021, KKR acquired and combined the assets of both operators in Chile and Colombia – creating ON*NET Fibra de Chile and ON*NET Fibra de Colombia, respectively – and has expanded these wholesale networks significantly over the past two years. 

Meanwhile, in Europe, KKR is deeply embroiled in the ongoing battle with Cassa Depositi e Prestiti  and Macquarie Group over who will be allowed to purchase TIM’s fixed broadband network, which analysts suggest could be worth up to €23 billion. 

How is the European fibre landscape changing in 2023? Join the operators in discussion at this year’s Total Telecom Congress live from Amsterdam 

Also in the news:
TIM to enter exclusivity negotiations with KKR
Cellnex snaps up Iliad’s stake in OnTower Poland
KPN buys Primevest’s Dutch fibre network 

5G NTN-mobile market revenue to hit $18bn by 2031


News

According to findings from global technology intelligence firm ABI Research, the non-terrestrial networks (NTN)Mobile segment could exceed 200 million connections by 2031 

Last year saw the completion of 3GPP’s Release-17, contained within which were various new specifications allowing NTN (primarily satellites) to serve both handheld mobile devices and the IoT. Since then, numerous firms like Apple, Huawei, ZTE, Qualcomm, Motorola, MediaTek, Bullitt, Globalstar, Inmarsat, and Iridium have all entered strategic partnerships within the satellite and mobile industries, seeking to capitalise on the emerging NTN–mobile market. 

For the mobile network operators (MNOs), meanwhile, the growing prominence of low Earth orbit (LEO) satellite constellations represents a major opportunity to their coverage beyond the reach of their traditional, terrestrial networks. T-Mobile, for instance, has joined forces with Starlink (SpaceX) to supply satellite-to-mobile connectivity. Similar partnerships from satellite operators such as Lynk and AST SpaceMobile, have been struck with major MNOs including Vodafone, Rakuten Mobile, AT&T, Bell Canada, MTN Group, Orange, Zain KSA, Saudi Telecom Company (STC), and Telefónica.  

“The emergence of satellite-enabled mobile devices from major consumer smartphone manufacturers and chipset makers like Apple, Qualcomm, Motorola, MediaTek, Huawei, and ZTE indicates the upcoming introduction of satellite communications into the mainstream consumer market,” said Victor Xu, Satellite Communications Research Analyst at ABI Research.  

However, whilst the advancements in satellite-to-cellular communications are exciting, it should be remembered that the majority of satellite services will initially target the IoT, low data rate communications, and emergency service communications, not the consumer segment. As the technology and standards mature in the following years, however, more advanced 5G-based New Radio (NR)–NTN will be incorporated, which will increase the capabilities of the network, allowing for more users.  

This introduction of NR–NTN satellite services, expected in 2026, will likely be the key driver for the large projected growth in the sector, with ABI projecting a Compound Annual Growth Rate (CAGR) of 59% from 2024 to 2031. According to the company’sThe Role of Satellite in 5G: Non-Terrestrial Networks Mobile application analysis report, the market could reach a value of over $18 billion by 2031, with up to 200 million NTN connections. 

 

How is the NTN-mobile market changing in 2023? Join the experts in discussion at this year’s Total Telecom Congress live in Amsterdam 

Also in the news: 

China Mobile Ningbo leads the way in building 5G infrastructure for business growth 

Telstra partners Starlink to serve remote customers in Australia 

New Zealand’s Spark partners Lynk for satellite-to-mobile connectivity