Satellites that can’t adapt risk leaving money on the table.
Virtualized, software-defined systems are allowing operators to accelerate time to market, adapt quickly to mission changes and tap revenue streams hardware-based systems can’t reach.
A primary economic advantage of virtualized ground systems is scalability, according to a new white paper authored by Novaspace, “The Business Case for Virtual Ground Systems: Quantifying the ROI Advantage.” The contents of the white paper will be discussed in a March 18 webinar featuring executives from across the satellite industry. Register here to participate in the webinar.
Virtualized ground systems scale more efficiently because capacity is added through software rather than hardware, avoiding the fixed design constraints and costs that limit physical infrastructure, according to the white paper.
Flexible Ground for Flexible Satellites
For example, Kratos is supplying the virtual ground segment for OmanSat-1 a reconfigurable, software-defined satellite owned by Oman’s flagship operator, SCT. The virtualized approach is part of Oman’s push to expand its national broadband and satcom footprint. Paired with the Airbus-built OneSat-1 satellite, the virtualized ground infrastructure allows SCT the flexibility to dial coverage and capacity up or down in software as it adds new users and regions, instead of relying on one-off hardware builds.
The virtualized ground segment will let SCT configure and monitor OmanSat-1, track performance and automate parts of daily operations. The setup will implement Ka-band tracking and control antennas, monitoring and carrier-monitoring software, flight dynamics capabilities and an orchestration system.
Very High Throughput GEO satellites, particularly software-defined VHTS like OmanSat-1, are projected to drive GEO HTS market revenues above $4.6 billion by 2033, but this value can only be fully realized if operators leverage virtualized ground solutions, according to the Novaspace white paper. Software-defined ground infrastructure provides the necessary flexibility to adjust capacity and the capability of orchestrating the satellite and ground components of a network in concert, according to the white paper.
Reshaping the Economics of the Ground Segment
Operators of satellites and constellations in various orbits that implement a virtualized ground solution also minimize the need for manual installation, operations and maintenance and site visits, which can accumulate costs, according to the white paper. The standardization enabled by virtualized infrastructure also allows IT teams to manage daily operations without adding specialized skills or new certifications, further saving time and costs, according to the white paper. A Novaspace financial modelling exercise determined that satcom operators moving to a virtualized ground system reduced operations and maintenance by 12%.
In fact, virtualized ground systems save operators around 43% in CAPEX and 30% in OPEX, resulting in a 39% overall reduction in costs – approximately $3.2 million in savings over a five-year period, according to the white paper.
“Virtualization is fundamentally reshaping the economics of the satellite ground segment,” Randall Barney, executive director, World Teleport Association, said in the white paper. “For teleport operators, this shift not only drives greater efficiency, but also opens new growth opportunities by increasing competitiveness, flexibility, and the ability to support rapidly evolving satellite networks.”
The 5G First-Mover Advantage
For emerging markets like 5G NTN, virtualization “will likely introduce a first-mover advantage to the operator that is able to implement it the most quickly,” John Canali, principal analyst, IoT at Omdia, told Constellations.
In fact, virtualization could pave the way for the entry of new operators planning 5G NTN constellations and offer an edge to the new entrants that act quickly, Canali said.
The 5G NTN market presents a $30 billion opportunity for the satellite industry by 2030, with software-defined ground architecture a key enabling technology for successful integration of satellite and terrestrial networks, according to the Novaspace white paper.
“Software-defined ground infrastructure is absolutely critical for 5G NTN,” said Vikrant Gandhi, vice president of research for information & communications technologies at Frost & Sullivan, echoing the white paper. “It serves as the ‘brain’ that synchronizes rapidly moving satellite constellations with terrestrial core networks to enable real-time resource allocation.”
Software-defined radio enables operators to make various adjustments in milliseconds in satellite environments, which is impossible with hardware-based systems, Gandhi said.
Software-based scheduling systems can also more easily manage complex multi-access interference and resource blocks from a centralized terrestrial location to compensate for Doppler shifts caused by a satellite moving at a high velocity, he added.
Virtualization also reduces 5G NTN costs by allowing advanced computing to be performed using standard, less expensive hardware rather than requiring the operator to purchase new, specialized equipment, Gandhi said.
“By virtualizing the ground segment, we can expect to significantly reduce deployment costs, scale services faster, better manage the needed site diversity and backup options in order to integrate satellite networks with 5G/6G networks seamlessly,” Kevin Choi, chief technology officer at South Korea’s largest satellite operator KT SAT, said in the Novaspace white paper.
Longer, More Lucrative Network Lifelines
Virtualization also provides a competitive edge by allowing operators to reconfigure their offerings in response to changes in business models, according to the January white paper. Operators can more easily customize their offerings and future-proof their ground system to accommodate technological advancements and evolving consumer demands, according to the white paper.
A flexible architecture can also expand a network’s longevity and in turn, maximize revenues, said Omdia’s Canali.
“We’re starting to see pushes in architecture really aimed at making it so that satellites are also software-defined, so that they aren’t just defined by their hardware characteristics,” Canali said. “And what this means is that satellites should be easier to update over the air rather than necessarily having this cycle where satellites become obsolete and then need to be replaced.”
“I think [virtualization] will change the horizon for how long a satellite can remain operational. Satellites can be better optimized over time and networks can be better balanced,” he said.
Next-Gen Readiness
Virtualization, standards-based orchestration and AI are like modular “Lego blocks” for next-generation satellite networks, with virtualization shifting satellite network functions into the cloud so they’re no longer tied to custom hardware, Ushua Prashant, senior research analyst at Analysys Mason, said during the Feb. 12 virtual conference “Satellite and the Cloud: Innovative Cloud Strategies Infusing Next-Gen Tech.”
Orchestration adds a unified control layer that can span different vendors and orbits, while AI then sits on top, using data to continuously optimize performance, Prashant explained. The pieces matter individually, but the real impact comes when you snap them together into one flexible, scalable architecture, she said.
This stack sets the foundation for where demand is trending—toward more data-driven, higher-value services in orbit, Dennis Gatens, founder of LEOcloud, now part of Voyager Technologies, said during the virtual conference.
“It’s going to be a data-driven economy. It’s going to be an AI-driven, AI-optimized economy to become an autonomous economy and posture in space,” Gatens said.
Explore More:
The Road to Interoperability: Exploring AI? First Consider Your Ground Architecture
4 Takeaways: Industry Analyst on the Software-Ground Competitive Advantage
For Satellite Industry, Virtualization and Interoperability Can’t Happen Soon Enough
