By Leif-Olof Wallin —
Using satellite for IoT has been around for a couple of decades but usually only for high value asset monitoring like pipelines, jet engines and expensive construction equipment. The market dynamics have now changed significantly with the introduction of smaller and more cost-efficient Low Earth Orbit (LEO) satellites and significantly lower launch costs making it feasible for more organizations to use satellite services for more use cases.
Summary
Using satellites to connect IoT devices in areas without traditional mobile operator coverage is slowly becoming reality in 2026 for additional use cases. Pricing for satellite services has become much more attractive and the elimination of the need for special satellite hardware/modules means an increasing number of use cases can benefit from satellite services. As a lot of the newer technologies put in use are nascent, it’s imperative to verify that the target satellite service meets current and future requirements of the use case, as their characteristics vary significantly. In addition, vendor viability, as well as the viability of its partners, is extremely important in a capital intensive and quickly changing market.
The changing satellite landscape
- Lots of progress in the satellite eco system:
- More and more satellites are being launched. There are probably around 14.000 satellites orbiting earth whereof approx. 90% are LEO satellites, in January 2026. This number is expected to grow to 30.000 – 40.000 in the next 5 years based on launch plans.
- The convergence between traditional mobile networks and satellite from a standards perspective really started with 3GPP release 17.
- More and more IoT module manufacturers are becoming satellite capable. Semtech was the first module manufacturer to bring an IoT module with both satellite (Skylo certified) and cellular in a single casing to market in 2H2025. Leading IoT module manufacturers are expected to ship cellular and satellite capable single modules in 1H2026 either through completely new designs or in some cases by upgrading the firmware in existing modules based on high end chipsets and that have an omnidirectional antenna for use with predominantly LEO satellites.
- Mobile Network Operators (MNO) are increasing their investments in 5G and moving to Release 17, the first release that supports Non-Terrestrial Networks (NTN), or the later Release 18, also known as 5G Advanced. All leading MNOs have partnerships in place with at least one satellite services provider, in some cases several.
- Telecom Regulatory Authorities (TRA), like the FCC in the US, is increasingly supporting direct-to-device services by allocating or authorizing use of existing spectrum for this use case.
Not all satellites are created equal
The majority of new satellites being sent up in orbit are LEO satellites. The cost of building as well as launching a LEO satellite has gone down at least 10X compared to one decade ago.
Satellite services have very different characteristics when it comes to:
- Bandwidth
- Latency
- Geographic availability (footprint)
- Frequencies used
- Power consumption when an IoT device is transmitting
- Type of connection – always connected or intermittently connected 15-20 minutes once every x hours (dictated by number of satellites in constellation, altitude and geographic coverage).
Please see figure 1 for typical values for GEO (Geostationary) and LEO satellites.
Figure 1: Typical characteristics of different satellite types
Types of satellite services providers:
- Legacy satellite providers, typically using GEO satellites and with a long history of providing satellite phones and VSAT links to organizations
- Satellite connectivity aggregators like Skylo that leverages existing, typically legacy satellite providers, and focus on developing the connectivity layer for mobile operators to connect to.
- MNOs and other Telecom Service Providers (TSP) that provide the services through a partnership with a satellite services provider. Most leading MNOs have at least one partnership announced.
- Newer entrants, typically leveraging their own LEO satellites. These satellite operators can be divided into two categories:
◦ Operators of small constellations like SatelIot that focuses on IoT and have currently 4 satellites in operation. These services typically offer intermittent access, usually in combination with a store and forward mechanism on board.
◦ Operators of large constellations like Starlink that offers continuous connection. - Organizations forming partnerships with established satellite operators where the company will have their own satellites with their own technology but leveraging capabilities of a partner. One such example is T-Satellite from T-Mobile US that have partnered with Starlink/SpaceX. T-Mobile have their own constellation of approximately 650 satellites with T-Mobile technology onboard to cover the continental US (Including Hawaii, Puerto Rico and the southern part of Alaska). These satellites “piggy back” on the Starlink constellation for backhaul to ground stations and they also use SpaceX for deploying the satellites. For all intents and purposes, this is really a LTE base station in a satellite. See figure 3 for an image of the actual satellite.
There are basically 3 different types of satellite services currently. See figure 2 for a more detailed list.
Figure 2 – Different types of satellite services
The two main spectrum options:
- Work with existing, typically GEO satellite providers, leveraging Mobile Satellite Services (MSS) spectrum, typically L-band (1.5–1.6 GHz – n255/B255) and S-band (2–2.5 GHz – n256/B256), that are largely harmonized worldwide, for connecting satellites directly to handheld and IoT devices.
- Use MNO dedicated spectrum, same spectrum that is used for traditional cellular communication on the ground. This means using traditional 5G spectrum licensed to a specific operator in a specific country, where permitted by the TRA.
Figure 3 – T-Satellite in orbit. This is actually a flying LTE base station for all intents and purposes (Source: Image courtesy of T-Mobile US)
It’s now also becoming possible to leverage LoRaWAN over satellite in addition to the 3GPP based standards and technologies. At least three Satellite providers are in various stages of offering it (Lacuna, Echostar Mobile, Plan S) using the conventional LoRaWan spectrum in the unlicensed sub-gigahertz industrial, scientific, and medical (ISM) radio bands.
Consolidation and new entrants into the satellite market
There has been a number of acquisitions among the legacy satellite operators consolidating the industry. Most notably SES acquiring Intelsat in 2025 and Viasat acquiring Inmarsat in 2023.
Some of the new entrants that typically deploy LEO satellites include:
- Starlink with approximately 9.350 operational satellites in January of 2026 providing close to global coverage, limited more by regulatory aspects then technology.
- AST SpaceMobile that is scaling up during 2026 from 5 satellites to approximately 40.
Some specialty satellite providers with a small number of LEO satellites in their constellation may provide close to continental coverage but only during 15-20 minutes when a satellite is overhead which may happen 1—2 times per day. This is typically using Narrowband IoT (NB-IoT). One such provider is Sateliot who operates a constellation of currently 4 LEO satellites that circle the earth every 90 minutes. For this to work, the satellite acts as a store and forward service, collecting and sending data when overhead the IoT device and storing data until it’s overhead a ground station where the data will be handed off and new data for the IoT device uploaded.
Financial viability is important when selecting your provider
The satellite business is still very capital intensive based on:
- Launching satellites are more cost effective now compared to a couple of years ago but still expensive. As a reference point, the lowest cost to get a LEO satellite launched today is around USD 2.500/kg (1 kg is approximately 2,2 lbs). Customer need to make sure satellite operator has access to capital to get the entire planned constellation in operation (if customer requirements require that).
- LEO satellites typically have a life expectancy of 5 years (can range from 3-7) due to atmospheric “drag” slowing them down and limited onboard fuel for repositioning. It’s imperative that the satellite operator has access to capital to replace satellites in the constellation as needed or service levels will degrade. As a comparison, GEO satellites typically have a life expectancy of up to 30 years. Another reference point is that Starlink loses about 1-2 satellites per day.
Another aspect is to understand what launch partners the satellite operator uses and if that is a viable solution in the longer term from a geopolitical perspective.
The 3GPP standards evolution
Support for combining conventional mobile networks with NTN was introduced in release 17 with further enhancements coming in release 18 and 19 and most likely future not yet frozen versions. See figure 4 for the most important NTN features introduction.
Figure 4 – Introduction of NTN support by 3GPPrelease
There will always be a significant lag between a standard being frozen and mobile operators adopting it. In terrestrial networks this is usually 18-24 months. In NTN, when factoring in additional time to build and launch satellites, this time is probably closer to 48-60 months.
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Links:
Too many IoT connectivity technology options can be challenging – A hands on guide to selecting the best possible technology - 2026 version
https://www.linkedin.com/posts/leifolofw_iot-iotabrnb-lteabrm-activity-7424940134497755137-6JCF
“Space: The Final Frontier” or How Satellite is Playing an Increasing Role in Both IoT and Enterprise Mobility
https://www.linkedin.com/posts/leifolofw_satellite-iot-ntn-activity-7422678290261524483-e8i0
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Byline
Leif-Olof Wallin is an independent Tech Advisor that specializes in Enterprise Mobility, Frontline Workers, Private Mobile Networks and IoT. Formerly, he was one of the Gartner analysts that published most of the Gartner research around IoT and what happens in the intersection of IoT, advanced analytics and Frontline Workers. LinkedIn: https://www.linkedin.com/in/leifolofw/
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