Amazon and SpaceX's Starlink extended the reach of their satellite systems with U.K.-based operator Vodafone signing a deal to link with the former and Japan-based operator KDDI linking with the latter. The moves bolster attempts by operators to extend the physical reach of their 4G LTE and 5G networks.

Vodafone’s efforts tie into Amazon’s Project Kuiper, which is the hyperscaler’s $10 billion plan to extend broadband connectivity. That plan will involve more than 3,200 low-Earth orbit (LEO) satellites, which Amazon plans to start shooting off into space beginning next year with the target of having at least half of those satellite’s operational by mid-2026.

Vodafone will use that constellation to expand the reach of its broadband services in Europe and in Africa through its Vodacom operations. The carrier also stated it was looking at enterprise-specific services such as backup service and extending connectivity to remote infrastructure.

Amazon has stated early testing has shown downlink speeds of up to 1 Gb/s using its largest customer terminal. This would be comparable to Vodafone’s current 5G network capabilities.

The Project Kuiper service would be separate from Vodafone’s ongoing efforts to support direct satellite-to-smartphone services. Vodafone earlier this year participated in a network trial with AT&T, Rakuten Mobile and AST SpaceMobile that facilitated a two-way voice call between a pair of Samsung Galaxy S22 smartphones.

Amazon initiated work on Project Kuiper in 2018, and received a license to operate the network from the Federal Communications Commission (FCC) in mid-2020. It has since signed up operators like Verizon for the service.

KDDI’s efforts with Elon Musk’s Starlink service will be focused on the direct satellite-to-smartphone market. The carrier will supply some of its own terrestrial spectrum to help power services from Starlink’s LEO constellation.

The use of KDDI’s own spectrum will allow the service to connect natively across Japan into current smartphones that have compatible radios. KDDI said it would begin testing basic text-messaging services across the connection beginning next year.

KDDI’s model is similar to one announced by T-Mobile US last year. That deal has the carrier using some of its extensive 2.5 GHz spectrum for an eventual Starlink-powered direct-to-smartphone service.

KDDI’s deal also comes on the heels of rival NTT stating plans to integrate SES’s satellite network capabilities into its managed enterprise edge product. The integration will embed SES’s O3b mPower medium-Earth orbit (MEO) satellite system with NTT’s managed Private 5G and Edge Compute offerings. It’s targeted at enterprises operating in areas lacking terrestrial network coverage like mining, energy, maritime or remote manufacturing.

A 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 a full Earth orbit in around 90 minutes. This allows a LEO constellation to provide relatively low latency compared to satellites that operate in medium-Earth orbit (MEO) at the expense of coverage per satellite.

Both deals also hasten what is an increasing push by telecommunication providers in looking toward the heavens to extend the reach of their wireless networks.

“Whether it’s the companies that are doing (or aspire to do) direct-to-device satellite connectivity, or whether the mainstream satellite broadband players now have some potential overlap with the mobile guys, this is an area we’re getting asked a lot of questions about just how is this all going to come together,” Dan Hays, partner at consulting firm PwC, noted in a recent interview with SDxCentral.

Some of this increased interest has come from standards bodies that have started to release specifications for integrating satellite communications into traditional 5G-based services. Standards body 3GPP included an initial integration path for “non-terrestrial network” (NTN) technology in its 5G-focused Release 17 last year. It’s expected to further that integration and capability with Release 18, which is expected to be frozen by mid-2024.

ABI Research noted late last year that more than “70 satellite service providers [are] currently providing services worldwide.” More recently it predicted the market could generate $124.6 billion in service revenues by 2030, citing market opportunities like IoT, backhaul, commercial broadband and mobile satellite services.

“We are seeing that the market is evolving quickly, and many services are finding enhanced deployment through strategic alliances and from increased bandwidth supply in LEO,” Jake Saunders, VP of Asia Pacific at ABI Research, wrote. “With satellites becoming smaller, more affordable, and reaching closer orbits, the barriers to entry have been lowered, fostering innovation and expanding the scope of satellite-based services and applications. The market is revealing new development paths that will influence the Terrestrial and Non-terrestrial connectivity markets and shape enterprise opportunities throughout the telecommunications value chain.

Traditional telecom operators are expected to play a big role in this opportunity.

“Looking at these market opportunities, a thought may arise whether satellite operators are trying to disrupt the traditional telecom market. But the reality is that telcos will continue to be the primary service provider for wireless access,” MTN Consulting’s Arun Menon wrote in a report.

“Telcos are also going to benefit from partnerships with satellite operators as they will aid in providing an enhanced experience for telco customers, reinforced by ubiquitous coverage. For satellite operators, though, navigating the regulatory hurdles and ensuring constant capital flow are key concerns; several players from the current herd will vanish in the next three to five years.”