The adoption of 5G Non-Terrestrial Networks (NTN) alongside terrestrial 5G has the potential to transform the telecom industry by creating a seamless network. This integration is expected to significantly enhance space segment capacity, providing more users with access to high-speed data services, ET reported, citing experts.
Unlike traditional mobile towers that transmit signals to mobile phones, the 5G NTN standard utilises orbiting satellites to deliver connectivity, including data, directly to handsets on Earth. NTN is now incorporated into the 3GPP Release-19 specifications for 5G.
Many telecom and satcom providers have announced connecting standard, unmodified smartphones with satellite connectivity for sending text messages. Recently, the UK’s Vodafone claimed to have made the world’s first satellite video call using a standard mobile phone with AST SpaceMobile, TelecomTalk reported in January 2025.
Key Applications
The demand for niche applications, such as disaster management via satellite communications, will persist as they serve critical and specialised functions. However, according to the report, experts believe the 5G NTN standard has the potential to unlock even more significant opportunities, especially in the fast-growing Internet of Things (IoT) market.
“This will lead to the emergence of a wider variety of applications and use cases, creating added value for users in vertical markets. These advancements are expected to fuel significant growth in the global satellite communications market,” Gareth Owen, Associate Director of Counterpoint Research, reportedly said. “By enabling seamless connectivity in remote and underserved regions, 5G NTN can help propel the growth of Internet of Things (IoT) applications across industries, driving innovation and creating new possibilities on a global scale.”
However, despite the immense potential, it will take several years for this vision of 5G NTN to fully come to fruition, Owen reportedly added.
Meanwhile, a KPMG India report estimates that satcom will add USD 20 billion in value and contribute 0.12 percent to GDP by FY2028. Traditionally, the satellite communications market has been a niche sector, primarily due to its dependence on proprietary technologies. However, the adoption of standardised 5G NTN solutions could greatly expand the market for broadband-from-space services, according to the report.
Purushothaman KG, Partner and Head of Digital Solutions and National Telecommunications Leader at KPMG in India reportedly said there are multiple use cases for satcom services, including facilitating five billion ATM transactions annually through 125,000 very small aperture terminal (VSAT)-enabled ATMs. Additionally, it plays a crucial role in networking the nearly USD 2 trillion equity markets and provides support for cellular backhaul, enterprise networking, rural connectivity, as well as in-flight, rail, and maritime communications.
Additionally, 50,000 gas stations are automated via satcom which offer a reliable link to access information on a real-time basis, while 65,000 trains are fitted with GAGAN (GPS-aided GEO augmented navigation) devices, which has improved efficiency in train operations to a significant extent, he said, according to the report.
Despite significant cost reductions in satellites and launches over the past two decades, satellite systems remain far more expensive than terrestrial networks and have limited capacity, making it challenging to establish a profitable business case for consumer broadband access.
Owen reportedly added that the economics might work in geographically large advanced economies such as the US, Canada or Australia, but the market size is not sufficient enough to support a major low-Earth orbit (LEO) constellation which is why companies like Starlink are trying to add as many other markets as possible, including India.
India’s immense potential, with the largest number of telecom and internet users outside China, has drawn several global players, including Elon Musk’s Starlink, Amazon’s Kuiper, and Canada’s Telesat in partnership with Tata Group’s Nelco, the report said.
As 5G services gain traction in India, it is essential not to overlook the crucial role of satcom services, which will be the next major step in further enhancing connectivity across the country, Purushothaman added, according to the report.
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