Sateliot’s first low-earth orbit (LEO) satellite was recently shot into space, the first step toward the Spain-based nascent satellite communications provider’s plans to eventually have 250 satellites in orbit to support 5G-based narrowband IoT (NB-IoT) connections.

Following several delays, the first Sateliot satellite was launched into orbit aboard a SpaceX Falcon 9 rocket that took off from Vandenburg U.S. Space Force Base in California. Once active, the 22-pound device will be able to provide 5G coverage across more than 800,000 square miles.

The satellite can support NB-IoT connections using 3GPP’s Release 17 non-terrestrial networks (NTN) specification. That specification allows the satellite to communicate with ground-based 5G devices and a focus on IoT connectivity.

Sateliot last year struck a deal with Amazon Web Services (AWS) to build a host its virtualized 5G core. That work tapped into the Linux Foundation’s Magma Core platform that was initially developed by Meta.

The satellite’s LEO orbit means it operates relatively close to Earth at a height of less than 1,000 kilometers and is able to make s full Earth orbit in around 90 minutes. This LEO orbit allows the Sateliot constellation to provide relatively low latency compared to satellite’s that operate in medium-earth orbit (MEO) at the expense of coverage per satellite.

Sateliot previously told SDxCentral that it planned to launch four more satellites this year, to have 64 satellites in space by the end of 2024, on its way to a “full constellation” of 250 satellites in orbit by the end of 2025.

Company CEO and Founder Jaume Sanpera explained that Sateliot would act as a service wholesaler with its constellation operating as a “coverage extender” for operators through a “single roaming agreement.”

“We target $1 per month per device for the satellite connectivity to be paid by the final user, typically to an MNO,” he said.

Sateliot claims to have closed deals with operators and other entities, with more than $1.3 billion in its sales pipeline. It expects to hit more than $1 billion in sales and more than $380 million in earnings before interest, taxes, depreciation and amortization (EBITDA) by 2026.

Its highest-profile deal is with Spain-based telecom giant Telefónica to develop services for the operator’s managed IoT platform.

Sateliot earlier this year announced a partnership with power grid solution company Sentrisense to support smart power line infrastructure. The deal will connect sensors to Sateliot’s NB-IoT constellation for data retrieval, even when they are out of reach from terrestrial connection points.

This followed a deal with IoT provider Sensefinity to help prevent cargo damage, and a deal late last year with South Africa-based Streamline to offer livestock tracking management services.

Telecommunication-focused satellite services have garnered increased attention as a way to provide some level of connectivity to hard-to-reach places. High-profiles companies like SpaceX’s Starlink have started to gain traction in providing consumer and enterprise broadband services.

ABI Research predicts LEO-based satellite services could generate $141 billion in service revenues by 2030. It cited market opportunities like IoT, backhaul, commercial broadband and mobile satellite services.

“The market is evolving quickly, and many services are finding enhanced deployment through strategic alliances and increased bandwidth supply in LEO,” Jake Saunders, VP of Asia Pacific and research director for ABI Research’s satellite communications service, noted in a report. “While these services are still in their early stages, there is evidence that they will find momentum as smartphone technology begins to peak, sales taper off, and new revenue streams grow in demand. To this end, the market is revealing new development paths that will influence the market and shape partnerships and opportunities for enterprises throughout the telecommunications value chain.”