INTELLIGENT BRANDS // Mobile Technology
Satellite smartphone services forecast to generate revenue of US $ 18 billion by 2027
New research from CCS Insight brings attention to a significant development in the telecommunications industry : the integration of satellite capabilities in mass-market smartphones . The research firm ’ s report , Spotlight : Direct Satellite-to-Device Mobile Services , sheds light on the nascent market as basic satellite communication services reach more and more people .
The report reveals new opportunities for enhanced global connectivity , with projected growth in satellite-connected devices and the introduction of new satellite constellations that can fill connectivity gaps in remote areas .
CCS Insight forecasts that 92 million phones will have built-in satellite messaging functionality by the end of 2023 , a significant rise from just under 2 million devices in 2021 . This remarkable shift in accessibility is driven by Apple ’ s tie-up with Globalstar for the Emergency SOS feature in the iPhone 14 range , as well as Qualcomm ’ s partnership with Iridium , which is bringing similar capabilities to Android phones .
Satellite communication services were previously limited to a niche market of users with specialised handsets , but they are becoming available to more and more people , bringing connectivity to remote locations with limited traditional network coverage .
“ Bringing satellite capabilities to massmarket smartphones marks a milestone in the telecom industry ,” said Luke Pearce , Senior Analyst at CCS Insight . “ This development creates exciting opportunities for consumers , manufacturers and operators and promises to help bridge the digital divide . The projected growth in revenue and subscribers highlights the potential this integration holds for expanding connectivity options – we ’ re witnessing the start of a new era where satellite services become an integral part of everyday smartphones .”
According to the research firm , the integration of satellite connectivity on mobile devices will soon no longer be reliant on hardware modifications . With commercial services expected to launch later in 2023 , new low-Earth-orbit satellite constellations led by AST SpaceMobile , Lynk and SpaceX will work alongside terrestrial mobile networks to provide satellite connectivity to all unmodified phones .
CCS Insight believes that initially , these enhanced satellite networks will offer basic messaging functions like Apple ’ s Emergency SOS service , but the capability could grow to deliver voice and data services as the constellations evolve . Network operators will be able to offer these satellite services as add-ons to existing subscription packages , catering to the growing demand for ubiquitous connectivity . p
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