In an audacious move that promises to reshape the landscape of satellite Internet of Things (IoT) connectivity, Spanish startup Sateliot has announced plans to secure a substantial €100 million through a mix of equity and debt. This funding is earmarked for launching a pioneering fleet of 5G Narrowband IoT (NB-IoT) small satellites, aiming to offer unparalleled connectivity across the globe, especially in regions traditionally underserved by mobile networks.
Sateliot, a trailblazer in satellite IoT technology, has been making headlines since its partnership with telecommunications giant Telefónica in August last year. With two test satellites already in orbit, the startup is gearing up to launch its first four commercial satellites by June. This milestone is not just a testament to Sateliot’s technological prowess but also a crucial step towards realizing its vision of offering global NB-IoT connectivity.
The company’s bold strategy comes at a time when many satellite firms face financial headwinds. However, Sateliot’s prospects look promising, buoyed by a significant order book worth approximately €187 million in annual revenue. According to CEO Jaume Sanpera, this demand stems from clients in countries like Canada, Brazil, South Africa, Indonesia, and Australia – vast lands where mobile network coverage is sparse.
The financial journey of Sateliot has been remarkable. With an investment of about €25 million, the company has developed, built, and launched its test satellites and the upcoming commercial fleet through a collaboration with SpaceX. Unlike its peers grappling with challenges, Sateliot stands on solid ground, backed by heavyweights like defense contractor Indra, telecommunications infrastructure company Cellnex, and the Spanish Government.
In collaboration with Telefónica, Sateliot is set to revolutionize how mobile network operators (MNOs) integrate satellite connectivity into their services. Starting in 2024, Telefónica plans to offer its customers NB-IoT connectivity that seamlessly merges cellular and satellite networks, enabling reliable communication across the globe with affordable commercial devices.
One of Sateliot’s innovative technologies, the patented “store & forward” authentication method, demonstrates the company’s commitment to overcoming the limitations of a nascent satellite constellation. This method allows satellites to store data when out of reach of ground stations, transmitting it once contact is reestablished – a critical feature for delay-tolerant IoT applications.
Expanding its partnership horizon, Sateliot recently inked a deal with Turkcell to showcase IoT connectivity in Turkey’s remote areas. This move, along with a collaboration with Kongsberg Satellite Services (KSAT) and Amazon Web Services (AWS) to connect a 5G messaging service, underscores Sateliot’s approach to offering standardized 5G satellite connectivity across various industries, including agriculture, livestock management, and maritime logistics.
As Sateliot strides towards its June milestone, the global IoT landscape watches with bated breath. This venture not only marks a significant leap for Sateliot but also heralds a new era of connectivity, promising to bridge the digital divide with its innovative satellite technology.
