Thailand’s First LEO Satellite Broadband Service
The National Broadcasting and Telecommunications Commission (NBTC) has officially granted approval for National Telecom (NT) to launch Thailand’s inaugural local satellite broadband internet service. This pioneering service will utilize a low Earth orbit (LEO) satellite network, a partnership between the state-owned telecom company and Eutelsat OneWeb, a global leader in satellite communications. The service began operating this month, building upon a previous NBTC resolution that allowed NT to provide LEO broadband services to the regional market, excluding Thailand itself. According to NT president Col Sanpachai Huvanandana, the company has set a target of generating US$10 million in revenue from this service by 2030, in addition to the 200 million baht per year that Eutelsat OneWeb pays to NT for infrastructure rentals. The two partners have collectively invested over $25 million to establish the local infrastructure, including a gateway in Ubon Ratchathani province, which is expected to support over 50,000 users in Southeast Asia in its first year.
Explosive Growth in LEO Satellite Applications
The approval for Thailand’s new service comes at a time of rapid global expansion and innovation in the LEO satellite market. According to tech research firm Gartner, worldwide spending on LEO satellite communication services is projected to reach $14.8 billion by 2026, marking a significant 24.5% increase from the previous year. While LEO satellites have traditionally been vital for providing broadband access to remote locations with limited connectivity, new and diverse use cases are now emerging. Gartner analyst Khurram Shahzad notes that LEO technology is enabling innovations like connected drones providing emergency 4G/5G connectivity during natural disasters and airlines offering high-speed, free WiFi to passengers. The largest growth areas are expected to be businesses and consumers in remote areas, with spending set to increase by 40.2% and 36.4% respectively, followed by applications in IoT connectivity, maritime, and aviation.
Addressing Challenges and Future Outlook
Despite the explosive growth and expanding applications, the LEO satellite industry is still considered nascent and faces several limitations, as highlighted by Gartner. Analyst Khurram Shahzad pointed out ongoing challenges such as regulatory barriers in some countries, capacity constraints in certain regions, and issues with roaming restrictions and interoperability. He also noted that LEO services are not yet certified for all mission-critical maritime needs. These factors underscore the importance for communications service providers to meticulously assess their strategies on a use-case basis. However, the long-term outlook remains highly positive. With more than 20 active service providers and over 40,000 satellites anticipated in the coming years, LEO technology is on a trajectory to become a mainstream enterprise broadband solution, promising consistent and ubiquitous internet access for companies and consumers regardless of their location.
