Tysons satellite communications company Omnispace LLC and Bethesda defense giant Lockheed Martin will work together to explore creating a 5G network in space, the two companies said Tuesday.
The "strategic interest agreement" between the companies is not a contract, nor is any money exchanging hands. What it does is cement an agreement for both companies to work cooperatively together to explore a hybrid 5G network that would combine on-the-ground networks with satellite-based networks for harder-to-reach areas, allowing for continuous global 5G speeds, Omnispace said.
“We share a common vision with Omnispace of a space-based 5G global network that would enable users to seamlessly transition between satellite and terrestrial networks — eliminating the need for multiple devices on multiple networks,” said Rick Ambrose, executive vice president of Lockheed Martin Space. “Ultimately, it’s about empowering end users with low latency connections that work anywhere. This step forward has the potential to upend space-based mobility.”
Lockheed Martin could benefit in a number of ways from the development of such a 5G network. The company designs and builds satellites for government agencies as well as maintaining its own, through which it offers its own services. It also builds military and other devices that could benefit from the global reach promised by Omnispace.
The announcement with Lockheed Martin comes after Omnispace raised $60 million in February in part from Fortress Investment Group, Columbia Capital, Greenspring Associates, TDF Ventures and Telcom Ventures. The company has raised $108 million since its founding in 2012.
Here’s how the combined 5G system would work:
- Companies that use internet-connected devices to track equipment, for example, would use traditional ground-based 5G networks in areas that offer them. (Think cellphone towers).
- When they move to rural or more remote areas, those devices would switch seamlessly to the Omnispace network through the technology and protocols it is developing.
- Omnispace, which owns several satellites with plans to launch more, would be able to offer the space-based product and earn revenue when that portion of the service is used.
Omnispace CEO and President Ram Viswanathan said earlier in 2021 that it was working on pilot projects to demonstrate the technology, adding that the space-based 5G portion of the market could be $50 billion to $75 billion in revenue, and even that could be conservative.
