Communication Service Providers Expand Service and Revenue Opportunities with Low Earth Orbit Satellites

This IDC Market Perspective highlights how low Earth orbit (LEO) satellites have emerged to become more prominent for communications service providers' (comms SPs)' investment and technology plans for delivering converged wireless networks for consumers and businesses. Comms SPs are developing partnerships with LEO satellite operators to supply voice, data, and mobile broadband in areas where the deployment of fixed-line broadband or terrestrial wireless is uneconomical or unreachable, signaling an important new opportunity for comms SPs."LEO satellite constellations offer a pragmatic and more cost-effective option to close the remote and rural connectivity gap, considering terrestrial wireless network deployment has not been financially feasible to develop a robust digital infrastructure," says Peter Chahal, research director for Telecommunications at IDC. "The opportunity presented to global comms SPs by integrating LEO satellite connectivity is huge to connect the unconnected and help bridge the digital divide. Hence the right alliances with satellite operators will be critical for comms SPs to support their growth plans for ubiquitous satellite-to-cellular coverage and 5G wireless data and broadband services."