For decades, satellite connectivity was viewed as a last resort—a niche solution for extreme circumstances where no other option existed. But a technology revolution is happening in space, and the implications for business infrastructure are profound.
IT leaders must prepare their teams for a new broadband era, driven by constellations of next-generation satellites. It's becoming a core, high-performance component of a modern global enterprise connectivity solution.
Read on to discover how this development provides a foundational layer of connectivity for everything from disaster communications for remote employees to IoT device management in areas beyond the reach of traditional networks.
Previously, the answer was simple. 5G offers speed and low latency in dense urban areas, while satellite offers global coverage with significant performance trade-offs. That distinction is rapidly becoming obsolete.
Low-earth orbit (LEO) constellations have fundamentally changed the performance equation. By operating much closer to Earth than their geostationary predecessors, they slash latency and boost speeds to levels that were previously unthinkable.
The market is responding with incredible speed. In a recent forecast, Gartner predicts that global LEO satellite communications spending will reach $14.8 billion by 2026, primarily driven by enterprise demand for resilient, high-speed broadband coverage anywhere on the planet. This surge underscores a fundamental shift: satellite is taking its place alongside 5G and fiber as a primary connectivity solution.
The emergence of enterprise-grade satellite opens up new strategic possibilities for connectivity leaders managing a sprawling global footprint. It directly addresses the core challenges of uptime, global reach, and disaster recovery.
A Boston Consulting Group analysis shows that modern LEO satellites can deliver speeds of around 100 Mbps and latency of under 30 milliseconds. This performance closely approaches that of fiber and 5G, but with one massive advantage: ubiquitous global reach.
By integrating satellite into their communication technology portfolio, enterprises can:
1. Eliminate single points of failure from local fiber cuts or regional carrier outages.
2. Deliver high-speed connectivity to remote factories, offshore operations, and sites in underserved regions where terrestrial options are unreliable or non-existent.
3. Deploy scalable, high-performance connectivity quickly without waiting for costly and time-consuming terrestrial infrastructure builds.
4. Guarantee an instant, reliable failover path when natural disasters or other major incidents disrupt primary terrestrial networks.
Businesses no longer need to sacrifice performance for uptime (or vice versa), but instead must match the right technology with a location’s requirements.
The practical applications for LEO satellite networks are expanding across every industry. It’s a powerful tool for enabling growth and ensuring operational continuity.
For industries such as energy, shipping, and mining, satellites provide the essential high-speed link needed for data-intensive applications, IoT monitoring, and crew welfare in the most remote environments.
Enterprises can rapidly open new retail locations or distribution centers in emerging markets without being constrained by the local telecom infrastructure.
How can enterprises use satellite networks for business continuity? By creating a connectivity path that is entirely independent of the terrestrial grid, which relies on vulnerable assets like submarine cable networks, satellite ensures your most critical locations remain online no matter what.
The most powerful use case is pairing a satellite with other connections, such as mobile (5G), fiber, and DIA to create a resilient, multi-layered network.
The short answer is no, especially not as a standalone replacement for every use case. While LEO satellite performance has improved dramatically, 5G and fiber hold a distinct advantage in densely populated urban areas.
For a corporate headquarters in a major city, a high-capacity fiber circuit or a dedicated 5G connection will offer higher top-end speeds at a better price point.
The question enterprises should be asking is not "which is better?" but rather, "where is it better?" The true power of satellite is unlocked when it becomes a strategic component within a larger, hybrid network.
A hybrid connectivity strategy that intelligently blends satellite with traditional solutions delivers the ultimate combination of performance, resilience, and efficiency.
Businesses that do so experience four competitive advantages:
Despite its advantages, integrating satellite presents challenges. Procurement teams can expect to face historically higher costs, increased contract complexity with new providers, and a lack of visibility into performance. This is where the role of a global connectivity partner becomes critical for designing an optimal architecture.
With the rise of high-performance LEO constellations, satellite is now a strategic asset that delivers unmatched global reach and resilience.
The smart business move is to integrate satellite technology into a hybrid network that provides support in areas where fiber and 5G are unavailable or have limited capabilities. This sophisticated approach maximizes operational uptime, enables seamless global expansion, and provides a crucial layer of security for business continuity.
Advantage helps global enterprises design, source, and manage intricate hybrid networks that deliver security, cost efficiency, and the operational uptime your business demands.
Could satellite strengthen your company’s global connectivity strategy? Start a conversation with us to find out more.