Across supply chains, utilities, and transport networks, billions of connected devices depend on ubiquitous communication. Yet many IoT devices, such as those tracking shipping containers traveling through hard-to-reach geographies, cannot rely on terrestrial coverage alone. This is where satellite connectivity becomes important.

Historically, satellite communication hasn’t been a realistic option because of the costs of the transceiver and the network service. The rise of modern low-Earth orbit (LEO) constellations has transformed this as they are much cheaper to deploy – using lower-cost transceivers and reduced access costs. This combination of lower network costs and lower device costs opens the door to new enterprise and IoT applications.

By integrating cellular and satellite, operators can keep more devices connected, in more places, with greater reliability than ever before. That is the real opportunity for satellite.

But tapping into that potential requires closer collaboration between telcos and satellite providers and an open dialogue with regional and national policymakers. So how did we get here, and what will it take to make these partnerships work?

What changed in satellite connectivity?

Until recently, deploying IoT via satellite was a heavy lift. It required custom-built devices, specialist installation, complex partnerships, and high service costs that limited its viability to low volume but highly critical IoT use cases. Modern technology has changed this.

Direct-to-device NB-IoT is one of the biggest developments. Standard IoT modules can now communicate directly with satellites, removing the need for bulky, dedicated terminals. Standards have also moved forward: 3GPP Release 18 – finalized in mid-2024 – introduced harmonized non-terrestrial network (NTN) specifications, letting devices switch smoothly between cellular and satellite networks.

Hardware has evolved, too. Modern antennas are smaller, lighter, and a lot more power-efficient, meaning they can be embedded directly into standard IoT devices without extra infrastructure. At the same time, expanding LEO constellations brings low latency, high bandwidth, and ubiquitous global coverage.

All of this has made satellite services and hardware far more affordable and scalable. What was once a niche, high-budget option has become a technology capable of supporting cellular networks at scale.

Policymakers are trying to keep pace with satellite IoT too; a necessary step for global players to hyperscale. Beyond the European Union, U.K. and U.S., other national authorities like India, Brazil, and Saudi Arabia ran satellite‑IoT consultations during 2024-25, signaling a desire for rapid regulatory convergence on NTN/IoT topics.

Hybrid connectivity – a welcome addition for cellular

Despite satellite becoming much more accessible, one thing remains clear: satellite does not (and will not) replace cellular. It lacks the indoor penetration to cover densely populated areas and can’t compete with terrestrial speed and efficiency. What it does offer, however, are a couple of major advantages to strengthen IoT systems.

The first is coverage. In remote or low-density areas where building terrestrial networks isn’t an option, satellites keep devices connected. The second is resilience. As IoT deployments grow, having a failsafe is crucial. Satellites can step in to keep them online, ensuring services continue uninterrupted.

For industrial IoT, this hybrid approach has real benefits. Continuous global coverage removes blind spots across oceans, deserts, and mountains. Operational visibility improves, allowing companies to enhance the tracking of assets, monitoring pipelines, and accessing environmental data in real time. Safety and compliance are also enhanced, with automated reporting and monitoring tools maintained constantly. And because a satellite isn’t affected by natural disasters or geopolitical disruption, it complements the cellular network in these scenarios.

Take vehicles in emergencies. Even at the edge of terrestrial coverage, cars still need to be able to send emergency signals. A combined cellular-satellite approach makes sure that life-critical information can always be shared. Asset tracking is another example: IoT sensors on containers, vehicles, or heavy machinery transmit location and condition data anywhere, enabling better route planning and faster responses to issues.

Collaboration and positive policy environment are key

However, there is a catch. Satellite’s potential for global IoT connectivity can only be realized if satellite and telecom operators work together within the right policy environment to stimulate growth in this market segment. The real promise of hybrid connectivity depends on much closer collaboration across the industry.

The only way to make this happen is with seamless integration. That means moving between cellular and satellite without the end user noticing a change. Achieving this requires manufacturers, mobile operators, and regulators to move in the same direction.

Fortunately, we are starting to see this alignment. Initiatives such as the GSMA’s NTN working groups are codeveloping standards for satellite connectivity to connect directly to any 3GPP-based mobile infrastructure. Or recently, the EU Commission’s Digital Networks Act proposal that seeks to incentivize the creation of pan-European satellite communication services by establishing an EU-level spectrum authorisation framework. Initiatives like these make it easier to deploy global IoT projects, avoiding bespoke hardware, integrations, or provisioning for each provider.

And of course, there are other opportunities for collaboration. Simplifying onboarding processes accelerates deployment and boosts reliability. Harmonizing commercial models (contracts, pricing, and service agreements) also reduces variation between operators, standardizing hybrid connectivity.

Ultimately, regulation that allows seamless handover across technologies and borders is key. Regulation also promotes technology advances – enabling innovation in the IoT sector. Yet today, we observe regulatory fragmentation across the globe: complex fee structures and administrative sovereignty provisions that inhibit scale, uncertainty around permanent roaming, and spectrum coordination delays.

Failing to act risks fragmented services and slow adoption. Consider the need for multiple device certifications across regions. But with the right partnerships and the political drive, the benefits could be huge: universal, seamless coverage, greater resilience for mission-critical operations, and the ability to scale IoT deployments – enabling digitalization and inclusion.

Satellite has matured into a scalable partner for cellular networks, and organizations that embrace this combined model will gain safer, more efficient operations. By taking accountability and recognizing this future won’t fall to any single player or region, the industry can make hybrid networks sustainable, affordable, and the foundation of global connectivity for the decade ahead.