The telecommunications industry is entering a transformative phase, as companies explore space as the next frontier for global communications. French startup Constellation Technologies & Operations is positioning itself at the forefront of this shift by leveraging 5G technology to deliver high-speed, low-latency internet from space. With an innovative approach to satellite communications, Constellation aims to provide telecom operators with a competitive edge in a market currently dominated by giants like SpaceX and Amazon.
Repurposing 5G for Space
Constellation Technologies, founded in 2022 by Charles Delfieux, plans to launch a constellation of satellites into very low Earth orbit (VLEO) to facilitate satellite broadband services. Unlike traditional models, Constellation's approach repurposes the 5G spectrum that telecom operators already use for terrestrial networks. By doing so, the company helps telecom operators extend their services into space, opening new revenue streams and allowing them to compete with other players in the satellite internet space.
The company plans to integrate cellular frequencies with its in-house-developed user terminals, enabling telecom operators to deliver space-based broadband services. These services will be powered by satellites designed to operate at around 375 kilometers above Earth, ensuring low-latency connectivity, which is increasingly comparable to terrestrial solutions.
Funding and Investment
Constellation recently secured €9.3 million ($10.2 million) in seed funding from French state-backed Expansion Ventures, Bpifrance, and other investors. This funding will be used to accelerate the company's engineering studies, complete its first end-to-end tests, and prepare for the launch of its first two prototype satellites in 2026.
With support from France’s strategic France 2030 investment plan, this funding will also help the company build and mass-produce user terminals and satellite payloads. The aim is to deploy a global satellite network that could eventually consist of 1,500 satellites, offering comprehensive global coverage. By integrating cost-effective, mass-produced components into its system, Constellation aims to drive down costs while delivering high-performance satellite internet access.
Competitive Landscape and Market Opportunities
The global satellite internet market is rapidly expanding, with companies like SpaceX's Starlink and Amazon's Kuiper leading the charge. According to a report by GSMA Intelligence, this market could be worth $35 billion by 2035. Most of this growth is currently being captured by these U.S.-based ventures, as well as Chinese initiatives, which are rapidly deploying thousands of satellites into low Earth orbit (LEO).
For telecom operators to remain competitive, they need solutions that allow them to tap into this space-based connectivity market. This is where Constellation Technologies aims to make its mark by offering telecom operators the ability to deliver high-speed, low-latency internet via satellite, particularly in remote areas where terrestrial networks are unavailable.
Technological Innovations
Constellation is distinguishing itself with two key technological innovations. First, its use of VLEO for its satellite constellation enables high-speed connectivity with minimal latency. By operating at lower orbits compared to competitors, the company can achieve faster communication speeds and reduce the size of the user terminals needed to access the network.
Second, Constellation's strategy of repurposing 5G spectrum for space-based communications offers telecom operators access to a largely untapped frequency band. Many telecoms are underutilizing their 5G spectrum, particularly in the 26 GHz band. Constellation’s technology allows operators to monetize this underused capacity by delivering 5G services from space, further enhancing the business model for both the startup and its partners.
Overcoming Challenges
While the technological vision is compelling, Constellation faces several operational challenges. Operating in VLEO presents specific hurdles, such as increased atmospheric drag, which shortens the lifespan of satellites. However, the company has designed its satellites with specific aerodynamic profiles to mitigate these issues. Delfieux, the company's founder, has stated that each satellite will be able to operate for about seven years before naturally breaking up in the Earth's atmosphere, reducing the risk of space debris.
Additionally, the company must navigate complex regulatory landscapes to ensure its satellites do not interfere with existing terrestrial communication systems. Several European telecom operators have already expressed interest in revenue-sharing partnerships with Constellation, and at least one has signed up to test the technology during the startup's first orbital demonstration in 2025.
Future Plans
Constellation Technologies has set ambitious milestones for the coming years. By 2025, the company plans to launch its first hosted payload aboard a SpaceX Falcon 9 rocket, in partnership with Italian space transportation company D-Orbit. This payload will serve as the first test of Constellation’s satellite-based 5G service.
By 2027, Constellation aims to deploy its first full production satellites, gradually building out its constellation to provide global internet coverage. The startup envisions its infrastructure fully operational by the end of the decade, at which point telecom operators will be able to offer customers high-performance, affordable satellite internet access.
With its B2B2C business model, Constellation places telecom operators at the center of its value chain, allowing them to maintain control over customer relationships while offering cutting-edge space-based connectivity services. This approach could help bridge the digital divide, particularly in regions where access to reliable, high-speed internet remains limited.
