Omnispace Secures $60M Funding for Satellite-5G Network

The Expanding Reach of 5G: Beyond Consumer Applications

Over the past several years, 5G technology has experienced significant growth, driven by marketing efforts from both wireless carriers and smartphone manufacturers emphasizing increased bandwidth and reduced latency for end-users. However, despite the consumer focus, some of the most impactful advancements utilizing next-generation wireless technology are emerging within the enterprise sector.

Enterprise Applications of 5G

A frequently cited example is the development of self-driving cars, which will likely depend on a combination of edge computing, minimal latency, and substantial bandwidth to function effectively.

Beyond autonomous vehicles, numerous other applications are proving to be equally compelling and are becoming viable for implementation even sooner. For instance, in agriculture, connectivity solutions can aid in equipment management, livestock monitoring, and the analysis of water consumption to enhance plant cultivation.

Logistics firms require the ability to oversee global supply chains, meticulously tracking shipping containers as they traverse the world between various ports.

Challenges to 5G Implementation

A significant obstacle exists: deploying 5G wireless networks in rural areas presents challenges, as the profitability of base stations is often questionable, leading to sparse coverage. Naturally, oceanic regions lack wireless base stations entirely.

Omnispace: A Hybrid Solution

Omnispace, headquartered in Washington D.C., aims to deliver comprehensive 5G-compatible connectivity for enterprise users by integrating terrestrial wireless technology with satellite communications.

The core concept involves combining these two distinct approaches – ground-based and space-based – into a unified system. This would allow businesses in sectors like agriculture and logistics to maintain consistent IoT connectivity without needing to switch between different technologies to benefit from 5G capabilities.

Recent Investment and Company History

The company recently announced a $60 million equity investment, spearheaded by Joshua Pack of Fortress Investment Group. Pack serves as head of credit investing at Fortress and also co-leads one of the firm’s Special Purpose Acquisition Companies (SPACs), Fortress Value Acquisition.

Existing investors, including Columbia Capital, Greenspring Associates, TDF Ventures, and Telcom Ventures, also contributed to this funding round.

Founded in 2012, Omnispace initially functioned as a holding company for wireless spectrum assets, specifically within the 2Ghz “S band” spectrum. These assets were acquired from the remaining holdings of ICO Global, a satellite-based service provider that had previously filed for bankruptcy.

Ram Viswanathan, CEO of Omnispace since early 2016, explained that the company began exploring ways to integrate its diverse assets through a technological layer, ultimately identifying a significant opportunity in providing global 5G connectivity tailored for IoT applications.

The Role of Satellite Technology

“The expansion of 5G will be limited by the extent and speed of mobile operator deployments,” Viswanathan stated. “Complete coverage of all land areas and customer bases will not be achieved” through conventional terrestrial wireless infrastructure.

“The primary benefit of satellite technology lies in extending the network’s reach into more remote and underserved regions.”

Viswanathan brings extensive experience in the satellite and wireless industries, having previously co-founded Devas Multimedia, an India-based connectivity startup involved in a protracted legal dispute with the Indian government regarding the cancellation of its satellite launch. U.S. courts recently awarded Devas $1.2 billion in compensation from a government-affiliated commercialization entity.

Distinction from Starlink

While comparisons to SpaceX’s Starlink project are understandable, Omnispace is not targeting the consumer broadband market. Instead, its focus is on enterprise and IoT applications.

Furthermore, Omnispace operates a hybrid network utilizing a combination of technologies, whereas Starlink is solely focused on space-based deployment.

Future Plans and Partnerships

Omnispace intends to utilize the new capital from Fortress to refine its services, complete pilot programs with mobile operators, and prepare the network for commercial operation, anticipated to begin in 2023, with the network fully operational by 2022.

Viswanathan affirmed that “our objective is to deliver the service on a global scale” with “a coverage footprint encompassing all locations.”

The company has contracted with Thales Alenia, a division of the French aerospace and defense company Thales Group, to execute its space-related strategy. Simultaneously, it is integrating its spectrum assets and collaborating with several mobile operators to develop a comprehensive solution, with initial strength in the Asia-Pacific and Latin American markets.