The launch of satellite constellations designed for unmodified smartphones heralds a potential boom in satellite use. Revenue from integrated satellite services is projected to reach $16.8 billion by 2028, driven by direct-to-cell and broadband applications. While still nascent, this sector offers long-term growth opportunities.
This year saw the launch of the first satellite constellations designed to provide commercial services to unmodified smartphones, which looks set to become the biggest satellite use case, with the US leading the way on adoption. Satellite services integrated with terrestrial cellular networks are still in their infancy, but the revenue from these is expected to grow rapidly to reach about $16.8 billion by 2028, according to forecasts by research firm CCS.
Those are the three applications of orbital internet service that CCS identifies, with broadband currently the largest at about $7.9 billion in revenue, thanks to providers such as Starlink. This is predicted to rise to about $13.3 billion by 2028, but the revenue from so-called direct-to-cell services is set to rocket from virtually nothing today to pass broadband in 2027, while IoT will only just top a billion. 'On the whole, the total revenue generated from these use cases is still relatively small compared to the telecom industry as a whole, but they do represent a long-term opportunity,' said Research Analyst Vaishali Purohit. CCS also distinguishes two distinct approaches to providing a direct-to-cell service. One is to target modified devices that feature special hardware, the other focuses on unmodified smartphones, with key distinctions between the two in the spectrum they use, the players and partnerships involved, and the device support required. Apple launched its satellite emergency messaging feature two years ago with the ability to send a message via satellite to a contact center and call for emergency help if no cell network is available. Messaging capabilities were extended in iOS 18. Device, and some Chinese brands such as Huawei and Xiaomi also have satellite messaging, but only for users in China. Modified devices typically access dedicated spectrum in the L-band or S-band ranges, owned by the satellite operator, Purohit said. This includes Globalstar in Apple's case, plus others such as Skylo and ViaSat
SATELLITE COMMUNICATIONS SMARTPHONES MOBILE NETWORKS BROADBAND INTERNET OF THINGS
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