Does satellite broadband have a business case in the UK and EU?

by David Howell, IT Pro

As businesses increasingly rely on fast, stable internet connectivity to operate, the limitations of terrestrial broadband infrastructure – especially in rural and remote areas – are becoming harder to ignore. Satellite broadband, historically considered a last resort due to high latency and cost, is undergoing a renaissance.

Satellite broadband has long been synonymous with rural communities: slow, expensive, and reserved for the most remote users. However, the advent of low Earth orbit (LEO) satellites, spearheaded by companies like Starlink, OneWeb, and Amazon's upcoming Kuiper network, is changing that perception.

Promising lower latency, higher speeds, and global reach, these next-generation satellite networks have sparked renewed interest from enterprise users and governments alike. However, does satellite broadband truly have a viable business case in the UK and EU, or is it still a niche solution? The answer, as it turns out, depends on the use case, geography, and expectations.

Until recently, satellite internet was hindered by high latency and inconsistent service. Geostationary (GEO) satellites orbit at about 36,000 km, making real-time communication difficult. LEO satellites, by contrast, orbit at altitudes between 500 and 2,000 km, significantly reducing latency and, therefore, data transmission speeds. According to ABI Research, LEO satellites will expand from the current 7,000 to an astonishing 42,600 by 2032.

Simon Dumbleton, UK CTO at World Wide Technology, explains that the technical capabilities of LEO networks are altering the way satellite broadband is perceived. "Users have been generally reporting consistent and reliable performance, both in terms of download and upload speeds, as well as latency," he says. "The ground dish is super sophisticated, and it continuously tracks the satellites to maximize performance."

Yet, while performance metrics are improving, not all networks are created equal. Dumbleton notes that mobile broadband services via satellite are still in their infancy, with current capabilities limited primarily to messaging and emergency services.