Autor: Małgorzata Kessler

Picture this: You’re tracking a shipping container somewhere in the middle of the Pacific Ocean, or monitoring oil pipelines in the middle of nowhere Alaska. Your fancy LTE Cat-M1 module? Useless as a chocolate teapot. Welcome to the reality where 90% of Earth’s surface has zero cellular coverage, and your IoT dreams hit the wall of geographical physics.[1]

This is where Non-Terrestrial Networks (NTN) swoop in like a technological superhero – though, spoiler alert, every superhero has their kryptonite.

What Exactly Are These Non-Terrestrial Networks?

Think of NTN as the marriage between your smartphone’s cellular brain and satellites floating around in space. Thanks to 3GPP Release 17 (yes, the same folks who gave us 5G), we now have standardized ways for your IoT devices to chat with satellites using the same protocols they’d use to talk to a cell tower.[2][3]

Instead of your data hopping from cell tower to cell tower, it takes a scenic route through space – bouncing off satellites orbiting at various heights, from Low Earth Orbit (LEO) at around 500-2000 km up, to Geostationary (GEO) satellites chilling at 35,786 km above Earth.[4]

The Sweet Spots Where NTN Actually Makes Sense

NTN isn’t trying to replace your urban cellular networks (that would be like using a sledgehammer to crack a nut). Instead, it shines in three specific scenarios:[5]

Mobile Assets in Coverage Voids: Your truckers driving through dessert or highland’s empty stretches. These devices normally use cellular but occasionally need that satellite backup when they’re in the middle of nowhere.[6]

Critical Infrastructure Backup: When a remote electrical substation’s primary connection goes down, or a natural disaster knocks out cellular towers, NTN provides that oh crap, we still need connectivity backup.[7][8]

Remote Sensor Networks: Environmental monitoring stations in forests, soil sensors on remote farms, or seismic monitoring equipment in areas where running fiber optic cables would cost more than buying a small country.[9][10]

Picture 1: Landmark of the current NTN implementation

The Reality Check: NTN’s Limitations (Let’s Be Honest Here)

Before you get too excited and start planning your NTN-powered smart toaster network, let’s talk about the not-so-fun parts:

Latency That’ll Make You Want to Pull Your Hair Out

While cellular networks deliver data in milliseconds, NTN operates on satellite time – anywhere from several seconds to tens of seconds for a round trip. GEO satellites? You’re looking at 280ms minimum, and that’s just the physics of radio waves traveling 71,000+ km round trip. LEO satellites are better at 100-200ms, but still nowhere near the sub-50ms you get with terrestrial networks.[11]

In fact, in this case the LTE Cat1bis make much more sense – read our post on this case: Why you should avoid the false dilemma on LTE Cat-M vs. NB_IoT

Power Consumption That Drains Batteries Like a Vampire

Your device needs to shout louder to reach a satellite than a nearby cell tower. We’re talking about 800mA transmit current versus 200-400mA for cellular – that’s roughly double the power consumption. Your 10-year battery life might become 5 years (if you’re lucky).[12]

Data Rates From the Stone Age

Forget about streaming Netflix to your IoT sensor. NTN NB-IoT typically operates at 1-2 kbps (compared to tens or hundreds of kbps for terrestrial NB-IoT), with message size limits of around 256 bytes. It’s perfect for sensor says temperature is 23°C but terrible for send me a firmware update.[13]

Costs That’ll Make Your CFO Cry

NTN modules cost significantly more than cellular equivalents – think $100-$1000+ versus $7-$100 for cellular IoT modules. Plus, airtime costs are many times higher than cellular data plans. It’s not exactly the budget-friendly option.[14][15]

Coverage Gaps (Yes, Even Satellites Have Limits)

Despite the global coverage marketing hype, current NTN NB-IoT coverage is limited to specific regions with spot beams over North America, Europe, parts of South America, and Australasia. It’s expanding, but we’re not at true global coverage yet.[16]

When NTN Makes Business Sense (And When It Doesn’t)

When NTN earns its keep:

Think about shipping vessels, cross‑border trucking fleets, mining operations, or scientific stations at the edge of civilization. In places where “no bars” isn’t a nuisance but a constant reality, NTN becomes more than a backup—it’s the only lifeline. It also makes sense for infrastructure you truly can’t afford to lose touch with, even if the main terrestrial link drops. And yes, if your system is only pushing small sensor readings every so often, the extra latency isn’t really a deal‑breaker.

When terrestrial still wins hands down:

On the flip side, if your devices are installed in cities or suburbs, or you need interactive, low‑latency communications (think vehicle‑to‑everything or emergency response), NTN is a poor fit right now. Applications that move a lot of data—streaming telemetry, frequent software updates—are also better left on conventional networks. And for high‑volume deployments measured in the tens of thousands, the economics simply don’t work out—terrestrial will almost always be cheaper and easier.

The Technical Reality of Implementation

Current commercial NTN modules like the Telit ME910G1-NTN or Quectel BG95-S5 are shipping and certified. Service providers like Skylo, floLIVE, and ORBCOMM offer actual working services – this isn’t vaporware anymore.[17]

But implementation comes with gotchas: your devices need clear sky visibility (no more hiding sensors in basements), antenna design becomes critical, and power management requires careful consideration of those higher current draws.[18]

The Bottom Line

NTN represents a genuine breakthrough in IoT connectivity – it’s the first standardized way to provide truly global device connectivity using familiar cellular protocols. But like any technology, it’s not a silver bullet.[19]

Upsides worth noting:

• The obvious one is reach: satellites finally close the gap where cellular networks don’t exist and probably never will.
• For industries with high uptime requirements, having a built‑in satellite fallback provides welcome resilience.
• Perhaps most underrated: 3GPP’s stamp of standardization. It means vendors and operators can finally align on a single way of doing things, instead of relying on proprietary satellite systems.

But the headaches stack up quickly, latency is still an immovable wall for real‑time use cases. Battery drain is another sleeper issue many deployments discover too late. And then there’s cost—not just the modules themselves but the airtime plans and the more demanding installation requirements. In short: the technology works, but it’s not turnkey, and it won’t fit every business case.

The smart approach? Start with a pilot program targeting your most critical remote applications where the higher costs are justified by the business value. Most successful deployments will likely be hybrid – using cellular where available and falling back to NTN in coverage gaps.

NTN isn’t going to replace terrestrial cellular networks, and frankly, it shouldn’t try to. But for those specific use cases where no connectivity isn’t an option, it’s finally moving from interesting idea to commercially viable reality.

Just don’t expect it to be cheap, fast, or simple. But hey, at least your container tracking will work in the middle of the ocean now.

The telco standards bring an ocean of opportunities (like LTE Cat1bis). On the other hand, some of the previous path of communication to IoT device are outdated – read a story about switching the 2G off: Save your products from 2G shutdown. IoT device manufacturers need to act now!

That’s true, at first glance it is hard not to feel lost. Good news I  would like to share is that our domain experts are greedy to help you. Just contact us and we will help you to find best mobile solution for your fleet of devices.

If you’re interested in discussing available solutions for your IoT operations, feel free to reach out anytime.

---

Sources:

[1] https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2024/08/Employing-Non-Terrestrial-Network-for-IoT-Connectivity.pdf

[2] https://www.3gpp.org/news-events/partner-news/ntn-rel17

[3] https://www.5gamericas.org/wp-content/uploads/2025/02/WP_New-Developments-and-Advances-in-5G-and-NTN-.pdf

[4] https://www.3gpp.org/technologies/deep-dive/ntn-overview

[5] https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2024/08/Employing-Non-Terrestrial-Network-for-IoT-Connectivity.pdf

[6] https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2024/08/Employing-Non-Terrestrial-Network-for-IoT-Connectivity.pdf

[7] https://www.3gpp.org/technologies/deep-dive/ntn-overview

[8] https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2024/08/Employing-Non-Terrestrial-Network-for-IoT-Connectivity.pdf

[9] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[10] https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2024/08/Employing-Non-Terrestrial-Network-for-IoT-Connectivity.pdf

[11] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[12] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[13] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[14] https://www.cavliwireless.com/blog/nerdiest-of-things/guide-to-cellular-iot-and-satellite-iot-connectivity

[15] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[16] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[17] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[18] https://www.groundcontrol.com/blog/unlocking-ntn-nb-iot-with-nidd/

[19] https://www.3gpp.org/news-events/partner-news/ntn-rel17

Telecom operators all over the world are switching off 2G. Within three years legacy networks will stop working, and so will IoT products incompatible with newer connectivity standards. Electronics manufacturers who have not yet transitioned must upgrade their devices as soon as possible or face tremendous business costs.

Imagine you’re on a long road trip and have just pulled to a gas station to refuel. You try to pay with your mobile wallet – it’s always quick and easy, right? – but the payment terminal fails to respond. You give it a few tries, then start fumbling for cash but can’t find enough. There’s no ATM in sight and no one to help you out.

Here’s another story. You’re driving home on a gloomy winter afternoon, feeling slightly under the weather due to a recent respiratory infection. With the air quality monitoring system helping you avoid pollution hot spots, you feel more confident. Then, as you check for real-time updates, you notice the device is not syncing. Too late, your throat is already telling you you’ve taken a wrong turn.

These cases may seem mild, but things can get a lot worse. Try to apply connectivity failure scenarios to numerous other 2G and 3G-enabled devices, including smartphones, smartwatches, smart thermostats, home security systems, health monitoring devices, vehicle tracking systems, emergency alert systems, panic buttons, and many more.

Devices dropping out of the network can lead to severe situations. Depending on the circumstances, potential harm to users, businesses, and manufacturers can be critical. This is not just hypothesizing. Connectivity-related issues are already common and bound to surge shortly due to the imminent phase-out of 2G and 3G networks.

The bottom line?

Now is the last call for IoT device providers to upgrade their products and ensure compatibility with modern networks. The longer the delay, the greater the operational consequences and reputational damage.

2G and 3G sunset: why are telcos switching off legacy networks?

Telecom operators around the world are phasing out 2G and 3G networks, with the earliest shutdowns dating back to 2011. According to a GSA report, roughly 200 companies in nearly 70 countries have either completed or are planning to shut down their 2G and 3G networks soon. The process is picking up pace, with Europe currently leading the way, followed by Asia and North America.

Some countries have already completed the shutdown, with Japan being the trailblazer (2012) and Australia and Oceania catching up not long after. Others are advancing fast, including Canada, Germany, South Korea, Sweden, and the United States. By the end of 2027, very few European telcos will still support 2G.

Below you can find the 2G shutdown timeline plan for Europe.

There are several reasons for this transition. Here’s a rough overview.

Spectrum reallocation

The radio spectrum is a finite resource. Shutting down older networks allows telecoms to reallocate 2G and 3G frequency ranges to enhance 4G and 5G standards, which offer faster connections, improving service quality.

On https://commons.wikimedia.org/wiki/File:United_States_Frequency_Allocations_Chart_2016_-_The_Radio_Spectrum.pdf you can check radio frequency allocations for the US.

Cost efficiency

Outdated networks are costly to maintain. Telecom companies choose to shut them down to reduce operational costs and focus on newer technologies that offer better performance with lower maintenance requirements.

Cybersecurity

Legacy networks are less secure and more exposed to cyberattacks compared to their successors. One of the critical 2G/3G vulnerabilities is weak encryption. On the other hand, LTE and 5G networks use advanced encryption algorithms for enhanced data protection.

Limited device support

2G networks can simultaneously support 30 to 50 devices per square kilometer. 5G can handle 191 million devices per the same area. The gap is tremendous and speaks for itself. With the booming IoT ecosystem, requiring robust connectivity, the transition to more advanced standards is a necessity.

How are 2G and 3G closures affecting IoT device manufacturers?

The imminent switch-off of the 2G and 3G networks is a critical change for many consumer electronics manufacturers (read more: https://fideltronik.com/rnd/blog/electronic-circuit-design-in-the-design-for-manufacturing-model). Organizations that have started to take notice only recently have little to no time left to initiate the transition to newer standards. Companies that want to stay competitive can’t afford any negligence. The 2G/3G shutdown will impact businesses in several key areas.

Device obsolescence

With the 2G/3G phase-out, older consumer electronics, such as basic mobile phones, wearables, and many types of IoT devices, designed to function primarily on 2G or 3G networks, will no longer be able to connect to cellular networks and become non-functional.

Customer backlash and damage to reputation

Owners of 2G and 3G devices are bound to struggle with connectivity issues, resulting in frustration and consumer dissatisfaction. This may lead to negative perception of manufacturers and brands, harming companies’ reputation if they’re slow to offer alternatives or upgrades. More foresighted competitors are likely to leverage such issues to their advantage.

Impact on support and warranty services

As 2G and 3G networks shut down, manufacturers will need to handle an increasing number of warranty claims and customer support inquiries from consumers who find their devices no longer work. This will add strain on customer service operations and result in additional costs for companies.

Comprehensive inventory assessment

Consumer electronics manufacturers must review their entire product portfolio to identify devices relying solely on 2G or 3G networks. Companies should evaluate their products’ potential for upgrade or replacement to avoid unexpected disruptions for consumers. The sooner, the better. Postponed migration to newer networks may lead to downtime: devices that rely on outdated technologies could temporarily stop functioning, affecting both consumers and businesses.

Key benefits of migrating from 2G/3G to modern networks

The essential “benefit” of the transition is pretty straightforward: either you upgrade your devices to newer standards or they will stop functioning. Keeping your products operational is not the only benefit of the migration. Upgrading to newer networks comes with several other advantages, including the following.

1. Increased data transfer capabilities

Data transfer speeds in legacy networks are dramatically low compared to 4G and 5G networks. For reference, 2G offers up to 50 kbps (kilobits per second) for download and up to 20 kbps for upload, while 3G takes it up to a maximum of, respectively, 1 Mbps and 380 kbps. 4G LTE can provide speeds of up to 100 Mbps for download and 86 Mbps for upload for mobile devices and even higher in stationary settings. 5G networks beat even that by offering speeds exceeding 1 Gbps. The gap between 2G/3G and 4G/5G is gigantic!

2. Energy savings

LTE-M (aka LTE Cat-M1), a key feature of LTE networks, offers advanced power-saving modes such as Power Saving Mode (PSM) and Extended Discontinuous Reception (eDRX). They allow IoT devices to enter low-power states when idle, extending battery life and reducing overall energy consumption. In contrast, 2G and 3G networks were not designed with power efficiency in mind, often leading to shorter battery life in devices. By transitioning to LTE, manufacturers can create longer-lasting, more energy-efficient devices, enhancing their product appeal and – what’s becoming more and more important – reducing environmental impact.

3. Improved signal coverage and penetration

LTE offers significant improvements on 2G/3G networks in terms of signal coverage and penetration. The deployment of 4G has allowed many countries to achieve north of 99% network coverage in urban areas. In addition to higher frequency bands, some 4G networks also use lower frequency bands that are better at penetrating buildings and obstacles. Moreover, contemporary LTE standard networks also utilize LTE Cat-M and NB-IoT technologies for penetration enhancement. This results in more reliable indoor connectivity for devices and enables IoT applications in less accessible environments, such as rural areas or industrial facilities.

Other benefits of upgrading from 2G/3G to newer standards include enhanced user security, long-term cost savings related to reduced maintenance, future-proofing devices and making them compatible with further technological development, and – last but not least – environmental benefits, helping businesses to reach their ESG goals.

What are the costs of upgrading from 2G/3G to an LTE or 5G standard?

The cost of upgrading your electronic products from 2G and 3G network compatibility to LTE or 5G standard can vary significantly. The ultimate price (read more: https://fideltronik.com/rnd/blog/quality-over-price-how-to-avoid-pitfalls-in-electronics-design) will depend on several factors and include the following components.

Hardware costs

When transitioning to a newer standard you can choose between 4G and 5G, with the latter offering much higher throughput, but also higher initial costs. Prices of modules vary depending on the type, features, and manufacturer. Typically though, they range from $5 to about $50 for LTE components. The transition to 5G is more expensive. Currently, 5G modules are priced at $100 or above, making NB-IoT or LTE-M modules a far more economical alternative.

Redesign and firmware costs

Additional costs for IoT device manufacturers include the integration of new connectivity technologies into their existing product lines. This is likely to involve software development and testing processes, which can add anywhere from tens of thousands to several hundred thousand dollars depending on the complexity of the devices and the scale of production.

Certification costs

Certification for new devices also adds expenses, which depend on the complexity of the device and the required testing standards. This includes compliance with regulatory requirements and network operator specifications, which are crucial for ensuring that devices can operate on new networks.

How do I upgrade my devices from 2G/3G to LTE/5G compatibility?

The upfront costs of the transition may seem daunting but migrating from 2G to newer networks is essential for business continuity. When contemplating the decision, also consider the long-term benefits, such as enhanced device capabilities and increased consumer satisfaction, which contribute to your brand’s perception and reputation. Keep in mind, though, that some of your devices may need to be replaced entirely if they are incompatible with newer technologies.

Here’s a short breakdown of the process for upgrading IoT devices from 2G/3G to LTE, performed by an experienced third-party provider.

1. Feasibility study

This is the initial stage, which takes approximately 3 weeks and involves the following steps.

Assessment of existing devices

This involves the evaluation of the current hardware and software capabilities of the IoT devices, including the analysis of the existing communication modules, processing power, and energy consumption.

Selection of components

This step involves identifying suitable LTE (or 5G if you choose an even greater enhancement) transmission modules that meet the device’s operational requirements.

Identifying potential improvements

This involves assessing the benefits of increased data transfer capabilities, such as faster speeds and lower latency, which can enhance device functionality and user experience.

2. Production of the first prototypes

The second stage of the process takes at least one month and involves the following.

Hardware design

Developing a new hardware design that will include selected LTE or 5G modules may involve redesigning circuit boards and ensuring compatibility with existing components.

MVP changes in software

This involves software modifications to support new connectivity options. The step may include updating the firmware to handle different communication protocols and ensuring compliance with new network standards.

3. Project finalization

This stage usually takes 2–3 months and involves normative testing (read more: https://fideltronik.com/rnd/blog/maximizing-quality-minimizing-risks-a-short-guide-to-electronics-testing) – a comprehensive suite of tests for ensuring compliance with regulatory standards for electronic devices, such as performance testing under various conditions and safety tests.

4. Oversight of the certification process

This involves ensuring that the IoT device meets regulatory and industry standards before it can be marketed and used on modern networks. The process length can vary depending on the target market and device specification.

5. Support for production implementation

This is the final stage, taking at least two months. It involves comprehensive assistance in scaling up production (read more: https://fideltronik.com/rnd/blog/design-for-manufacturing-how-to-ensure-smooth-transition-to-mass-production) of the newly designed devices , ensuring that manufacturing processes are efficient and cost-effective.

Cost-effective transition: how can Fideltronik help you migrate from 2G/3G to LTE/5G?

Fideltronik is the largest EMS provider in Poland, with nearly 40 years of industry experience. We specialize in offering end-to-end solutions for engineering and manufacturing, including innovative design, rapid prototyping, volume manufacturing, and after-market services.

As a design house, we have broad expertise in designing and manufacturing IoT devices. Our in-depth knowledge of IoT development allows us to streamline the upgrade process, reducing development costs and minimizing errors.

This involves using off-the-shelf components and platforms, which helps accelerate integration and reduce custom development costs, making the transition to LTE or 5G smoother and cost-effective. As part of a large EMS, we have the know-how to select the right components that best meet your project’s needs, ensuring optimal performance, reduced expenses, and long-term support.

Overall, by applying our proven development practices and industry knowledge, we can cut both expenditures and time-to-market by up to 20%.

That’s not all. In our approach, we strongly focus on fast delivery of the MVP, allowing you to validate your upgraded devices early without committing to full-scale production.

Last but not least, our expertise covers industry standards and regulatory requirements. We can help you streamline the certification process, preventing delays and costly rework while ensuring compliance.

In a nutshell, here’s what we bring to the table:
– reduced development costs,
– minimized error and delay risks,
– fast MVP development for early validation,
– faster and cheaper integration with off-the-shelf components,
– optimal performance based on our longstanding EMS expertise,
– streamlined certification with our in-depth knowledge of industry standards and compliance.

If you think you could use our assistance, feel free to reach out anytime!

https://fideltronik.com/rnd/#contact