According to the World Bank’s World Development Report 2023, 95% of the world’s population is concentrated on just 10% of the world’s land mass. In the ITU’s Facts and Figures published in November 2022, 95% of the world’s population – not necessarily the same 95% but pretty close – has access to cellular. That leaves a lot of the Earth’s surface – including land, sea and ice – not covered by cellular, and a lot of space where things are not connected, writes Robin Duke-Woolley, the chief executive of Beecham Research.
Cellular networks are located where most people are, but not necessarily where things are that need to be connected. As IoT becomes increasingly central to operations for businesses and many other types of organisation, the other 80%+ of the Earth’s surface is becoming increasingly important to connect to. Satellite looks to be the clear option, but the traditionally higher connectivity costs have impeded growth. This is because most satellite communication today is based on proprietary solutions – each constellation has its own set of protocols. As a result, IoT applications connected via satellite typically have to reach a higher bar of added value before they can justify being connected, which means they tend to be limited to mission critical activities. But that may soon change.
Low power wide area network (LPWAN) technologies are being introduced for satellite use, which increases the standardisation and the opportunity for lower costs. Some initiatives to combine long range wide area network (LoRaWAN) with satellite constellations have already commenced. Meanwhile, the 3rd Generation Partnership Project (3GPP) has been working to extend 5G standards to include satellite networks – referred to as non-terrestrial networks (NTNs) – in Release 17 and further in Release 18. As a result, Figure 1 shows typical expectations for growth of satellite IoT connections over the next few years with LPWAN satellite connections becoming more evident from 2024 onwards. While CAGR to 2023 is 23% per annum, from 2023 through 2027 it is 42% per annum as these new technologies come to market.
Introducing 5G to satellite
As the rate of adoption of mobile communication technology around the world continues to rise, the goal of using it to provide seamless global coverage to anyone, anywhere, at any time has become increasingly important. This has led to major advances in both terrestrial and non-terrestrial satellite networking technology.
Smooth interworking and integration of terrestrial network (TN) – such as cellular networks – and NTN components is the next logical step on the coverage journey to provide enhanced mobile broadband (eMBB) to consumer smartphones (direct-to-smartphone) and Internet of Things (IoT) use cases.
Integration with satellite networking technologies that can provide coverage in areas that TNs cannot reach will help to deliver resilient services to people and businesses currently unserved in both developed and undeveloped parts of the world, bringing potentially significant social and economic benefits. Beyond the benefits NTNs will deliver to smartphones, they will also have the capability to support both industrial and governmental IoT devices for verticals such as:
- Agriculture/forestry
- Automotive
- Healthcare
- Logistics/track and trace
- Maritime transport
- National security/public safety
- Railways
- Utilities
- Weather/environmental monitoring
Different satellite systems have been used for years to provide services such as TV broadcasting, navigation, communications, surveillance, weather forecasting and emergency systems. Figure 2 illustrates the orbits of the three main satellite types – geostationary (GEO), medium-Earth orbit (MEO) and low-Earth orbit (LEO) – in comparison to a commercial aircraft and high-altitude platform system (HAPS) providing local service coverage.
GEO satellite systems are operated at a high altitude of about 35,000km, which introduces long latencies (>500ms) and limited data rates. GEOs appear stationary to the device and provide a large field of view for a portion of the Earth’s surface, such as Europe or North America but not both together. This makes them well suited for satellite television, business-to-business data services (such as trunking/backhauling and enterprise networking) and governmental services (such as military satellite communication systems).
MEO satellite systems such as Galileo, global positioning system (GPS) and GLONASS are mainly used for navigation and are typically deployed at an altitude of about 20,000km in a semi-synchronous orbit that is predictable and reliable with an orbital period of 12 hours. There are constellations in MEO that are also used for communications services deployed at a height of about 8,000km. This leads to a latency that is five times lower compared with GEO, providing higher data rates.
LEO satellite systems are used for services such as Starlink, OneWeb, Iridium and Globalstar. These satellites operate at altitudes of 400km to 1,500km, where a higher speed of about 8km/s is required to stay in orbit. The time to orbit the Earth is then 90-120 minutes. LEO satellites provide the lowest latency and tens of megabits per second of capacity, making them suitable for MBB and IoT applications. As the footprint is notably smaller compared with MEO and GEO – with typical footprint diameter of just 1000km – larger constellations are needed.
3GPP Release 17 has specified the use of GEO and LEO satellites for IoT connectivity via NTNs in a track known as IoT NTN. To a large extent this follows on from the Release 17 work done for direct-to-satellite smartphone use, termed NR (meaning 5G New Radio) NTN. This work has resolved a wide range of key technical issues. For example, it includes reducing the number of fast handovers between cells required for devices connected to LEO networks, by using beam steering to create Earth-fixed beams. Also, inserting pre-compensation delays for dealing with Doppler shift issues caused by round-trip delays and frequency shifts that would otherwise impact receiving stations.
IoT NTN includes adaptations to NB-IoT and LTE-M that will enable them to support NTNs. This 3GPP track is known as IoT NTN. Discontinuous coverage is a topic that is specific to IoT NTN. Unlike smartphone use via satellite, many IoT NTN use cases do not need continuous coverage. They may only need to transmit their data once every few hours. These types of use cases make it feasible to deploy constellations with fewer satellites. To support such operations, information needs be signalled to enable user equipment to predict the times when it will have coverage. Release 18 will then extend these capabilities further.
What are the benefits of integrating 5G with satellite for IoT?
Essentially, integrating 5G with satellite, as envisaged in 3GPP Release 17, puts a stationary cell tower in the sky when considering GEO, or a fast-moving network of cell towers when considering LEO. It means a single SIM will be able to connect to both TN and NTN-compliant satellite networks.
Taking the case of GEO, incumbent satellite connectivity providers work with proprietary devices and communication protocols. These are relatively expensive due to relying on dedicated devices and high cost of infrastructure. As a result, customers have to invest in equipment that can only be used with one constellation and are therefore locked in. This is justified for critical applications but it limits the range of applications that can be cost effectively served.
In comparison, use of 5G introduces the opportunity to use standardised hardware made by many different suppliers for both TN and NTN use. This will significantly increase the addressable market.
A LEO NTN equipped with 5G is exactly the opposite scenario to a 5G TN. For NTN, the ‘cell towers’ are moving very quickly in relation to the connected devices, whereas for TN the devices move around static cell towers. Each LEO satellite is typically travelling at 8km/s, or nearly 17,900 mph. That is equivalent to Mach 23 – 23 times the speed of sound. However, they are much further away from the devices than in a terrestrial network and the line-of-sight range of the devices is much greater. The opportunity is to use a TN when you can, and NTN automatically when you cannot. This minimises the cost of universal coverage anywhere on the Earth’s surface.
Taken further, the utility of satellite communications is more limited within cities and in city-to-city communications because these are areas where fibre and Wi-Fi already dominate and the lines of sight necessary for satellites are significantly reduced. Nevertheless, integrating satellite and terrestrial systems will be necessary to meet the full spectrum of future demands likely to be placed on 5G networks. These include:
- with the proliferation of IoT devices, increasing traffic and number of connections outside of dense city centres in more rural and remote areas.
- providing coverage for devices on the move (such as a ship at sea or a car driving cross country where there is variable coverage, such as across the US.
- processing and data caching pushing progressively closer to the network edge as a result of edge computing, and further away from areas of dense fibre availability.
Take, for example, the connectivity needs of mobility. If you disconnect a mobile asset – a car, truck, plane, drone or ship – from the fibre network, it is possible to stay connected using Wi-Fi and terrestrial 5G infrastructure so long as it is either in or in close proximity to cities. Moving to more rural and remote areas, satellite communication has the potential to provide reliable coverage and sufficient data density. As the number, uses, and requirements of connectivity continue to evolve, so does the importance of extending the promise of 5G networks beyond the urban and densely networked communities.
To meet these demands, satellites will need to serve a diversity of purposes ranging from the last mile problem to connections on the move, redundancy for critical emergency services, edge networking, and IoT dense traffic areas outside of the already highly networked cities.
As a result, satellites as part of 5G are likely to play an increasingly significant role in the future.
Use cases for TN + NTN IoT
5G together with satellite has potential for a wide range of IoT applications. Here are some of the more compelling use cases for early deployment.
Utilities
The effects of climate change have brought utility networks covering electricity, gas and water to particular attention. Cellular networks are increasingly being used for smart metering and for utility network monitoring of supply and leakages. As a low power alternative, NB-IoT is a front runner for the connectivity and extending this direct to satellite offers opportunities for substantially increased visibility in remote locations.
Maritime
There is little network infrastructure available on the ocean – the majority of the Earth’s surface. The further from the coastline, the less accessible connectivity solutions become. For telematics applications where there is a need, for example, to track shipping containers and their contents, to recover lost or stolen assets including vehicles, or warn vessels of emergency situations, satellite IoT will increasingly have a significant part to play. Emissions control and remote monitoring for preventive maintenance are also of increasing interest. Telematics devices are often designed to be low power and do not require a constant network connection, which further makes satellite IoT a strong option.
Transportation and logistics
Cellular network coverage on roads and highways outside residential areas can be patchy or non-existent yet the need is increasing. For telematics applications that track vehicles, containers, or report the condition of goods across shipping routes, satellite IoT connectivity provides a missing link for low-powered telematics devices. This is particularly useful for cross border monitoring.
Oil and gas
Oil rigs need to operate wherever the oil is—and that is most often not where network infrastructure is. Some oil operations need to set up on the ocean, too far from cellular towers and other traditional connectivity solutions. Securing remote assets is an issue, as is the increasing need for ensuring and proving regulatory compliance.
Environmental/Weather
Climate change has also brought the need for higher visibility of the local environment and local weather conditions, from all points of the Earth’s surface. Remote stations may be on drifting buoys at sea, monitoring forestry or desert locations on land and many others. Satellite is often the only viable connectivity method and improving the efficiency and economics of this will likely significantly raise the visibility, particularly in remote locations.
Agriculture
Agriculture increasingly relies on IoT to automate routine processes and make more data-informed decisions. But remote rural environments can also create challenges for traditional connectivity solutions. In environments where cellular coverage is unavailable or spotty, satellite IoT can close coverage gaps for tech-enabled farming operations.
Government
Governments need access to data in remote locations for security and other operational needs. These applications are already substantial users of satellite connectivity. Improvements in efficiency and economics open opportunities for further developments.
Mining
In remote mining areas, there is either no public cellular network coverage, or only intermittent coverage available due to geographical conditions. This is where a NTN connectivity solution via satellite is needed. When cellular land reception drops or is not available, the IoT device uses the satellite network connection. Heavy equipment used in mining locations can stay connected for tracking location, predictive maintenance or remote condition monitoring, and emergency alerts.
Recent related G+D announcements
1. G+D and Sateliot announce first iSIM with cellular and satellite connectivity
Giesecke+Devrient (G+D) has agreed to cooperate with Sateliot, a satellite communications network operator headquartered in Barcelona, Spain. This will enable G+D to offer users of its IoT services true global coverage. Whenever a terrestrial cellular connection is unavailable, roaming to a satellite network is automatic.
As a provider of cellular IoT connectivity, G+D already connects numerous devices across the planet. However, there are areas where there is no or only limited coverage with mobile networks, for example, at sea or in remote or rural areas. G+D is now closing this coverage gap by cooperating with service provider Sateliot, which provides 5G satellite connectivity for IoT.
Sateliot is the first provider to operate a LEO network that uses identical technologies for satellite and cellular connectivity. Unlike other solution approaches, this makes satellite connectivity available at a low cost by extending the coverage footprint of MNOs and MVNOS through standard roaming integration.
The LEO network will consist of a number of nanosatellites with 5G coverage for NB-IoT in NTN . The first of five nanosatellites this year was sent into space on a SpaceX Falcon 9 rocket on 15 April 2023. Sateliot is planning calls for an expansion to 64 nanosatellites in 2024 and 250 in 2025.
Global coverage in G+D’s IoT service offering will be ensured in the future by Sateliot’s satellite-based IoT connectivity and G+D’s cellular mobile network for IoT devices. The IoT devices automatically switch from cellular to satellite communication when needed, without the user noticing.
The devices are equipped with G+D’s SIM-technology. In principle, classic pluggable SIM cards, embedded or integrated SIMs (eSIM or iSIM) can be used here.The iSIM solutions offer users the greatest benefits. They are characterized by low space requirements, optimised energy consumption, and low costs. In addition, iSIMs score highly in terms of sustainability, which is ensured by the absence of any requirement for SIM slots, additional housings or use of plastic. iSIMs are therefore increasingly the first choice for secure IoT connectivity in NB-IoT applications.
Users can conveniently manage the SIMs and control all IoT activities via their IoT Suite. They can use it, for example, to analyse data, identify efficiency potential or read off costs.
The potential range of applications for G+D’s new solution and service offering, which will be commercially available from the beginning of 2024, is far-reaching: conceivable applications include asset tracking, metering, smart farming and massive IoT applications in general.
2. G+D strengthens position in IoT market with acquisition of MECOMO
G+D acquired MECOMO, a specialist in tracking and tracing solutions, in May 2023. MECOMO, based in Munich/ Unterschleissheim, Germany, is a software systems house that provides end-to-end (E2E) telematics solutions for industrial and logistics enterprises. Founded in 2000, the company is the market leader in German-speaking Europe for the digitalisation of fleet-based logistics processes. In addition, its connected solutions promote climate-friendly operations in supply chains where goods are shipped via different modes of transport.
MECOMO is the leading provider in German-speaking Europe for maintenance-free tracking solutions of all kinds of logistics objects without own power supply. This ranges from pallets and refrigerated containers to load carriers, freight cars and sea containers. Eight of the ten largest Central European logistics companies are already using MECOMO’s fleet telematics. Growing customer groups include railroad companies, airports, and defense and industrial companies.
The company offers its customers a holistic IoT solution that enables them to optimally control and manage their goods and fleets, including solar-powered IoT devices and sensors which are being attached to the logistics objects. They can be used not only to track location via GPS but also the condition of goods, for example, by measuring temperature or humidity. The recorded data is collected, processed and analyzed in the company’s own software platform. The features of the platform can be specifically tailored to the customer’s needs, such as dynamic rule and reporting settings. Thus, all aspects of tracking logistics objects and their condition in real time – from the warehouse location, through the company premises, to cross-border transport by rail, ship and road – are addressed. The direct transmission into various customer IT systems via a wide range of standardised data interfaces is a decisive factor for logistics companies.
Every day, more and more IoT devices and machines are being connected with each other via cellular networks. In addition to data authenticity and data security, reliable global connectivity and powerful E2E solutions are essential. With the acquisition of Pod Group in 2021, an Enterprise Network Operator (ENO) specializing in scalable, mobile-networked solutions for the Internet of Things, G+D had already expanded its range of solutions in this area. Through the acquisition of MECOMO, G+D becomes an IoT solution provider with a complete end-to-end portfolio for customers in the transportation and logistics sector.
G+D’s offering includes market-leading eSIM technology. With eSIMs, the SIM chip becomes permanently embedded into the device during manufacturing. Through a highly flexible and dynamic eSIM management solution, the associated connectivity profiles can be downloaded over-the-air and exchanged later at any time if required. This offers enormous application and cost advantages, especially in the IoT area.
With the acquisition of MECOMO, G+D is now taking the next step in expanding its IoT product portfolio and offering solutions from a single source. In doing so, the technology group is making targeted investments into selected verticals, one example being the logistics industry as one of the largest and fastest growing segments within the IoT market.
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