By: Greg Pelton

Satellite and terrestrial networks have traditionally occupied distinct domains, each with their own technical standards, business models, and user communities. Yet, as digital transformation accelerates and the demand for ubiquitous connectivity grows, the boundaries between these worlds are blurring. The emerging vision is one where standards-based, interoperable technologies enable seamless integration between satellite and cellular networks, unlocking new opportunities for both markets. 

Today, there are strategic, technical, and commercial drivers behind this convergence, and thus, mobile network operators (MNO) and chipset makers must embrace a standards-led approach poised to reimagine the future of global connectivity. This convergence will also serve as the foundation for a new strategic imperative with significant implications for expanding coverage, enhancing service offerings, and tapping into previously underserved markets.

The Strategic Need for Convergence

Historically, satellite communications have relied on proprietary hardware and protocols, often tailored to specific mission-critical or remote applications. While these solutions have delivered robust performance in niche markets—such as maritime, aviation, and Internet of Things (IoT)—they have struggled to achieve the scale and cost efficiencies of the global cellular ecosystem. The cellular industry, by contrast, has thrived on open standards and massive economies of scale, with billions of devices and users worldwide.

The strategic rationale for satellite-cellular convergence is clear: by embracing standards-based technologies, satellite operators can dramatically lower barriers to entry for new customers. While proprietary satellite transceivers remain a reliable and preferred choice for certain applications, standardized transceivers open the door to innovation and broader adoption across diverse network environments. 

However, leveraging widely adopted cellular chipsets—already optimized for cost, power, and interoperability—can unlock access to vast new markets, particularly in IoT and direct-to-device (D2D) communications markets. This shift not only benefits satellite operators by expanding their reach but also offers a compelling opportunity for MNOs and chipset makers.

For MNOs, the value proposition is clear. Satellite integration allows operators to extend their coverage beyond the reach of cell towers, eliminating “dead zones” and enabling critical services like emergency messaging and IoT connectivity in areas where terrestrial infrastructure is impractical or cost-prohibitive. This not only enhances customer retention but also opens new revenue streams through subscription bundles and value-added services. The ability to offer truly global coverage as part of their core service portfolio, rather than a premium or niche offering, transforms their market position.

Meanwhile, chipmakers are seizing the opportunity to embed satellite capabilities directly into their hardware. By supporting 3rd Generation Partnership Project (3GPP) Release 19 standards, companies like Nordic Semiconductor enable devices to transition easily between terrestrial and satellite networks. This unlocks a new era of always-on connectivity for smartphones, wearables, and IoT devices—without requiring user intervention. It will also result in a broader addressable market and faster time-to-market for OEMs, especially in industries like logistics, agriculture, transportation, and emergency services.

The Role of 3GPP and Industry Standards

At the heart of this transformation is 3GPP, the global body responsible for defining cellular standards. Over the past few years, 3GPP has progressively expanded its scope to include satellite access, recognizing the need to integrate non-terrestrial networks (NTN) into the broader mobile ecosystem. Initial efforts focused on satellite backhaul for terrestrial towers, but recent technical releases have begun to address direct device-to-satellite connectivity.

Iridium NTN Direct^SM, a 3GPP 5G standards-based narrow-band IoT (NB-IoT) service operating on Iridium’s proven Low-Earth Orbit (LEO) satellite constellation, is leading this modernization. With the company’s globally licensed L-band spectrum and regulatory approvals already in place, MNOs can deploy services quickly and with minimal compliance risk. This demonstrates the tangible benefits of a standards-led approach, offering a clear path for MNOs to extend their reach into previously inaccessible areas and support global business customers.

Technical Challenges and Solutions

Satellite networks are expensive to build and launch and must operate for many years to repay the cost of capital. Historically, that has meant that satellite services rarely change unless a new generation of satellites is being launched. This introduces challenges with 3GPP standards since they are updated every couple of years and may change dramatically during the lifespan of a satellite constellation. 

Most satellites capture signals from user devices and relay them to a ground station, where they are processed. This allows some standard updates to be implemented terrestrially but reduces the flexibility in how satellites use scarce spectrum resources.