More modern satellites rely on regenerative payloads that are software-defined and can be updated with new capabilities over the satellite’s life. These software-defined payloads provide more efficient use of the radio spectrum and can support new 3GPP features and even new radio interfaces from cellular chips over time. 

Satellite LEO architecture offers distinct advantages over geostationary alternatives: lower latency, stronger signal penetration, and true global coverage—including polar regions and oceans. These features make it ideal for mission-critical applications and low-power IoT devices. Moreover, mature constellations and operational readiness provide MNOs with a reliable and proven platform for extending their services.

Business Opportunities and
Market Expansion

Standards-based integration with satellite communications opens up a wealth of new business opportunities. In the IoT sector, many potential customers are currently underserved, either because existing satellite solutions are too expensive or because their devices primarily operate within terrestrial coverage but require occasional satellite connectivity. By leveraging advanced cellular chipsets, satellite operators can offer cost-effective, dual-mode solutions that easily switch between terrestrial and satellite networks. This capability is particularly compelling for MNOs, who can now provide global coverage to their IoT customers without needing expensive add-ons or specialized hardware.

As satellite and terrestrial networks converge, the next frontier lies in how operators leverage this integration to differentiate services and drive innovation. Rather than simply extending coverage, MNOs can now reimagine service tiers, bundling satellite connectivity into mainstream offerings and enabling new applications in mobility, logistics, and public safety. This shift reframes satellite not as a fallback but as a strategic enabler of resilient, global-first connectivity—especially as demand grows for uninterrupted service across increasingly mobile and distributed use cases.

The Greenfield Opportunity in D2D and NB-IoT

Perhaps the most exciting frontier is the direct-to-device (D2D) market, particularly for connected IoT sensors, vehicles, and remote assets of all kinds. This is a greenfield space with no dominant incumbents and immense growth potential. Integrating satellite support into cellular chipsets empowers device manufacturers to participate in a broader connectivity ecosystem, enabling differentiated services and accelerating innovation across sectors that demand continuous, intelligent communication. This is especially relevant for safety, asset tracking, and emergency communications, where reliable connectivity can be a matter of life and death. 

Architectural Evolution and Cloud-Native Solutions

The shift to standards-based integration also demands a rethinking of network architecture. Traditional satellite gateways have relied on proprietary hardware and custom software, resulting in high maintenance costs and slow innovation cycles. By adopting standards-based core network elements—similar to those used in 5G networks—satellite operators can leverage commercial off-the-shelf products and cloud-native solutions.

Cloud-based gateways offer several advantages: they reduce dependency on specialized hardware, accelerate service deployment, and enable simple integration with terrestrial networks. Leading mobile operators are already migrating their core networks to the cloud, and satellite providers can follow suit, building scalable, flexible, and future-proof infrastructure. This also simplifies interoperability with other operators, as standardized interfaces and protocols become the norm rather than the exception. The architectural evolution benefits MNOs by streamlining integration and reducing operational complexities.

The journey toward full satellite-cellular integration is still in its early stages, and purpose-built satellite systems will continue to play a vital role in specialized, high-reliability, or mission-critical applications where tailored performance is essential. However, the direction is clear. Standards-based approaches are unlocking new markets, driving down costs, and enabling innovative services that were previously out of reach. The technical and commercial challenges are significant, but so too are the rewards: a more connected world where reliable communications are available to everyone, everywhere. The convergence of satellite and terrestrial networks is not just a technological evolution—it’s a business revolution.

For MNOs, this means expanding their footprint and service offerings. For chipset makers, it means enabling the next generation of globally connected devices. The convergence of satellite and cellular networks through standards-based integration represents a paradigm shift in global communications. By becoming part of standards, satellite operators can deliver global, innovative, cost-effective services to new and existing markets.