5G NTN is a significant opportunity for SNOs, however it re-writes the traditional satcom business case, where revenue has previously been made per bit from a small number of high-value global customers.
SNO networks:
a deep dive into new waters?
SNO networks are vastly different from those of MNOs. Built for maximum efficiency, SNO systems are proprietary. As with mobile networks, there is an exceptionally high cost associated with
owning and managing satellite constellations, and maintaining full control over assets has long been the industry's approach to maintaining control over profits. Link budgets are at the core of
constellation and terminal design. Decisions are driven by spectral efficiency, with operators striving for optimal OpEx and CapEx. Often, the entire network supply chain is owned and
controlled by the operator, providing them with control over operational performance at a very granular level.
This creates a significant challenge surrounding interoperability. In recent years, the satellite industry has started shifting parts of their systems to introduce improved interoperability, with
software-defined components and virtualisation at the ground segment helping to deliver more flexible networks. However, as the industry looks to slot into the wider 5G NTN
landscape, infrastructure must be carefully planned to ensure that investment is placed into future-proof networks. As SNOs look to create new networks capable of running to 3GPP standards, there
are a large number of operational decisions to make to ensure that systems are live in time to tap into the first wave of NTN opportunities, whilst being agile and flexible enough to adapt to the
inevitable evolution of the 5G NTN.
Architectural flexibility is key for SNOs wishing to deliver 5G NTN capabilities to their networks. Satellite assets are long-lived whilst 5G NTN standards are evolving, and SNOs
must establish infrastructures which enable continuous network management. Without this flexibility, SNOs could face expensive and slow pivots to stay aligned with future updates
to 3GPP standards. This flexibility will also allow network updates to accommodate future demands of 5G NTN, such as the need for multi-orbit and hybrid orchestration. In the future, services may
need to move between terrestrial, LEO, MEO, and GEO depending on demand, such as coverage, latency, capacity, regulation, and economics. By building a dynamic network now, SNOs can stay on the
front foot and expand capabilities as and when 5G NTN demands them.
A large challenge for SNOs is balancing proprietary optimisation against 3GPP interoperability. The historic satcom model of tightly integrated waveform, modem, terminal, and payload design does
not map cleanly onto a mass-market standards ecosystem. This serves as a big challenge for SNOs, demanding a significant shift in how satellite networks are designed and integrated within the
wider NTN. SNOs need a clear terminal and RF strategy, as weak handset RF performance directly increases satellite complexity, link-budget pressure, and constellation cost. With the coexistence
of NTN, terrestrial networks, and satellite systems increasing, spectrum and interference management must be planned for as a dynamic operational challenge to ensure operational and budget
efficiency.
5G NTN is demanding a fundamental shift in how SNOs operate, and it is introducing new processes to well-established networks. Pivoting to a more agile infrastructure is a necessity for SNOs.
3GPP will continue to evolve, meaning flexibility is fundamental when establishing these new capabilities.
Delivering a unified communications network
MNOs have long built their networks upon agility and interoperability due to the nature of the industry, and this flexibility is proving advantageous as it pivots towards 5G NTN
delivery. Mobile networks are largely localised, with a large customer base and effective low ARPU (average revenue per user). Although it must adapt to align with the latest 3GPP releases,
the largely software-defined industry is in a good position to deliver NTN capabilities. On the other hand, in an industry based on proprietary, vertically optimised systems, SNOs have a larger
task ahead of them. There are important steps to take for SNOs that want to deliver 5G-NTN services; establishing networks that are future-proof and adaptable will be the key to their
success.
However, creating these networks requires a significant shift in how SNOs deliver their services. It is not the case of expanding existing proprietary structures or systems; it requires a
complete rethink. 5G NTN is a significant opportunity for SNOs, however it rewrites the traditional satcom business case, where revenue has previously been made per bit from a small number of
high-value global customers. Acknowledging the challenges discussed above and creating systems to mitigate potentially limiting factors will determine whether an SNO will be effective in 5G NTN
delivery. As we move towards the delivery of a unified communications network, operators are facing lucrative opportunities. Success will be directly related to the establishment of agile,
forward-thinking 5G NTN infrastructures, which can adapt to market demand, evolve with 3GPP updates, and ultimately, deliver seamless interoperability throughout the communications ecosystem.
Investing in intelligent infrastructure will be the key to operator success in 5G NTN.