Satellite connectivity is moving from network backup to mainstream telecom strategy. Yet many mobile operators still treat it as wholesale capacity. That view now looks too narrow, as satellites become part of resilient, global connectivity.
Capgemini’s Praveen Shankar and Cambridge Consultants’ Derek Long argue that telcos need a new model. Operators must stop selling simple connectivity. Instead, they should offer complete solutions across terrestrial and non-terrestrial networks.
Shankar said, “Satellite is becoming mainstream”. He added that operators must “completely reimagine the business model.” This shift matters because satellite players no longer serve only remote sites. They now target direct-to-device services, broadband, aviation, maritime and enterprise resilience.
T-Mobile US has pushed early direct-to-device services in the US. Meanwhile, Starlink has expanded its ambitions through spectrum moves and partnerships. This creates opportunity for telcos, but also pressure. Satellite firms can become partners, infrastructure disruptors, or even competitors.
Operators face a difficult timing problem. Many still focus on fibre builds, network upgrades, compliance and cost reduction. Satellite adds another strategic priority. However, delaying too long could weaken their position in future connectivity markets.
Enterprise demand is already visible. Long noted that many customers want non-terrestrial networks included in their services. However, only 17% said telcos provide proper NTN-related solutions. That gap could hurt operators as B2B telecom growth outpaces consumer growth.
Customers also want simplicity. Long summed up their message clearly: “I want seamless, digital-first experience. I don’t care what you’re doing at the backend”. In other words, enterprises care about outcomes, not network architecture.
Satellite also strengthens digital sovereignty. Governments want resilient alternatives for critical infrastructure. This is especially important during cyberattacks, physical disruption, or geopolitical tension. Long said, “If telcos can become the face of sovereignty, they are a very, very interesting partner.”
The technology path remains complex. Operators must choose between LEO, medium Earth orbit, geostationary systems and high-altitude platforms. Each option balances coverage, cost and delay differently. Multi-orbit strategies may offer resilience, but they also raise integration challenges.
Standards should reduce fragmentation. Industry players are moving toward 3GPP Release 19 and later specifications. These standards support 5G-Advanced and future 6G direct-to-device services. That should help devices and networks work together more easily.
Regulation will also shape the market. The FCC plans to auction upper C-Band spectrum in 2027. Brendan Carr said, “This harmonized super band will be the envy of the world.” Such spectrum decisions could reshape power between carriers and satellite providers.
By 2030, satellite connections could rise from 16 million to almost 90 million. Falling launch costs make that growth more realistic. Telcos that act early can lead the ecosystem. Those that wait may become secondary partners in a market they once expected to control.
