Leveraging Satellite NG-RAN for 5G A Path to Cost Efficiency for MNOs

The deployment of 5G infrastructure presents transformative opportunities for mobile connectivity, but also brings challenges, especially for new Mobile Network Operators (MNOs). The high costs associated with building dense radio networks and the infrastructure required for 5G services are significant hurdles. However, by partnering with satellite-based service providers or using satellite-based Next-Generation Radio Access Network (NG-RAN) infrastructure, new MNOs can achieve substantial cost savings, improve service coverage, and support sustainability goals. These advantages are particularly relevant in developing economies, where government support through spectrum auctions can enable affordable 5G deployment and broaden network access for underserved regions.

How to Achieve Cost Efficiency for New Mobile Network Operators

• Reducing CapEx and OpEx through Satellite-Based NG-RAN Solutions – Establishing a 5G network traditionally requires extensive capital expenditure (CapEx) to build out urban radio networks, along with fiber and other ground-based infrastructure. Moreover, operational expenditure (OpEx) rises as remote radio sites require ongoing maintenance, which can be logistically complex and costly, especially in rural or underserved areas. Through satellite-based NG-RAN, new MNOs can avoid substantial infrastructure costs by focusing on dense urban areas for core 5G deployment, while relying on satellite solutions for rural and remote regions. This approach minimizes the need for CapEx in areas where terrestrial radio access networks would be cost-prohibitive and reduces OpEx by eliminating the operational burden of maintaining remote ground-based sites.
• Energy Efficiency and Reduced Carbon Footprint – Satellite-based NG-RAN also provides a lower-energy alternative for delivering 5G services to less populated regions, significantly reducing energy costs and minimizing the environmental impact. For new MNOs, especially in developing markets where sustainable growth is a priority, satellite-based solutions help in reducing the carbon footprint by limiting the number of power-intensive, ground-based radio sites required in remote areas.
• Coverage and Service Reliability in Developing Economies – In developing economies, connectivity gaps are often most pronounced in rural and remote areas, where building terrestrial networks is economically challenging. Satellite-based NG-RAN can fill these gaps efficiently by providing reliable, high-quality coverage in regions where traditional infrastructure deployment is impractical. This extended reach can significantly enhance rural connectivity, enabling educational access, healthcare services, and economic opportunities in these regions.
• Economic Development and Social Impact – The improved connectivity provided by satellite NG-RAN can drive digital inclusion in developing economies, creating opportunities for social and economic development. By bridging connectivity gaps, new MNOs can support the local economy, from agriculture to small businesses, by providing services that enhance productivity and access to markets. Furthermore, satellite-based NG-RAN enables government agencies to extend public services to more remote communities, enhancing citizens’ quality of life and supporting overall economic growth.
• Spectrum Auctions and Government Benefits – For governments in developing economies, spectrum auctions for satellite-based 5G services offer an effective way to encourage market entry for new players and increase network coverage. These auctions can be structured to incentivize new MNOs and satellite operators to enter the market, providing broader coverage at a reduced cost to operators.
• Revenue Generation through Auctions – Spectrum auctions for satellite-based services provide a revenue stream for governments, which can be reinvested into national digital infrastructure and connectivity programs. This process not only facilitates the entry of new MNOs but also creates a competitive environment, reducing service costs for consumers and expanding digital inclusion.
• Collaborative Models with Satellite Service Providers – To leverage the cost efficiencies of satellite-based NG-RAN, new MNOs can explore several collaborative models with satellite providers. Infrastructure-sharing partnerships allow satellite operators to offer managed network services, reducing the operational load for new MNOs. Additionally, satellite NG-RAN allows for network slicing customization, enabling specific service levels and quality for enterprise or government applications, which is particularly beneficial for government-backed digital programs in rural areas.
• Strategic Advantages for New MNOs in Developing Markets: In addition to economic benefits, adopting satellite-based NG-RAN positions new MNOs for strategic success:
• Rapid Market Entry and Expanded Coverage – Satellite-based solutions allow for rapid deployment, bypassing the delays associated with terrestrial infrastructure buildout, enabling new MNOs to enter the market more quickly with nationwide coverage.
• Competitive Differentiation through Cost Savings – With lower CapEx, OpEx, and energy costs, new MNOs can offer competitive pricing and prioritize expanded service coverage, enhancing their market position and differentiating their offerings in highly competitive environments.

By embracing satellite-based NG-RAN, new MNOs can position themselves as agile, resource-efficient players, delivering robust 5G services in ways that traditional infrastructure alone cannot achieve, particularly in emerging markets where connectivity can drive profound socio-economic transformation.

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