Thales' Pioneering Role in 5G Satellite Connectivity and Its Implications for Future Growth

The global telecommunications landscape is undergoing a seismic shift as the demand for secure, high-speed, and ubiquitous connectivity accelerates. At the forefront of this transformation is Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), which is redefining the boundaries of satellite-based infrastructure. By leveraging its expertise in 5G Direct-to-Device (D2D) technology, laser communications (SOLiS), and flexible geostationary satellites (Space Inspire), the company is not merely adapting to market needs but actively shaping the next generation of global connectivity. For investors, this strategic positioning offers compelling insights into the firm’s potential to capture emerging demand in a sector poised for exponential growth.

5G D2D: Bridging Terrestrial and Satellite Networks

The convergence of terrestrial and non-terrestrial networks is a critical milestone in achieving seamless global 5G coverage. Thales Alenia Space has taken a leading role in this domain through its U DESERVE 5G project, a government-backed initiative under France’s 2030 industrial strategy. This project, involving partners such as Capgemini, Orange, SES, Qualcomm, and Loft Orbital, aims to demonstrate direct communication between satellites and mobile devices or fixed terminals. A demonstrator satellite in low-Earth orbit will test interoperability between terrestrial and satellite 5G networks, addressing a key challenge: ensuring smooth handovers between the two systems. According to a report by Thales Alenia Space, this initiative will evaluate how devices can transition between satellite and terrestrial coverage, a capability essential for applications ranging from IoT to emergency response [1].

The company’s collaboration with Ericsson and Qualcomm since 2022 has further advanced this vision. In early 2025, the trio achieved a breakthrough by demonstrating an end-to-end 5G Non-Terrestrial Network (NTN) call using a simulated LEO satellite channel in a French laboratory. This milestone proved that 5G-capable devices can maintain uninterrupted connectivity in remote areas—such as oceans or dense forests—without requiring additional satellite equipment [3]. By tackling technical hurdles like latency management and Doppler effects, Thales Alenia Space is accelerating the commercialization of NTN, a market projected to grow rapidly as demand for "connectivity anywhere" intensifies.

SOLiS: Revolutionizing Laser Communications

While 5G D2D addresses the "last mile" of connectivity, Thales Alenia Space is simultaneously pushing the frontiers of data transmission through its SOLiS (Service Optique de Liaisons Spatiales Sécurisées) project. Funded under the France 2030 program and led by CNES, SOLiS aims to demonstrate the viability of optical communications via geostationary satellites. This technology promises to deliver ultra-secure, high-speed data transfer—up to one terabit per second—while mitigating the vulnerabilities of traditional radio-frequency systems [1].

The project builds on prior innovations, such as the CO-OP and VERTIGO initiatives, and involves a consortium of industry leaders and startups. The optical payload will be deployed on the Hellas Sat 5 geostationary satellite, with pilot ground stations in Cyprus and Côte d’Azur. By leveraging free-space optics (FSO), SOLiS could enable multi-orbit connectivity, addressing the growing need for resilient, high-capacity networks in sectors like defense, finance, and critical infrastructure. As stated by Thales Alenia Space, this initiative underscores the company’s commitment to developing technologies that not only meet current demands but also anticipate future challenges in data security and transmission efficiency [1].

Space Inspire: Flexible Geostationary Satellites for Dynamic Markets

While LEO and MEO satellites dominate discussions on 5G and IoT, geostationary (GEO) satellites remain indispensable for high-capacity, wide-area coverage. Thales Alenia Space’s Space Inspire platform is redefining the role of GEO satellites through its all-digital, reconfigurable-in-orbit design. This innovation allows operators to dynamically adjust satellite capacity in response to market fluctuations, a critical advantage in an era of rapidly evolving demand.

In 2022, the company secured six of the ten contracts for GEO telecom satellites in the global open market, a testament to the platform’s appeal. Notable projects include the Intelsat 41 (IS-41), Intelsat 44 (IS-44), and Eutelsat Flexsat satellites, which leverage Space Inspire’s flexibility to deliver tailored services. More recently, the firm secured an order for the JSAT-31 satellite, which will provide broadband services across Asia and the Pacific [2]. By combining high throughput with adaptability, Space Inspire positions Thales Alenia Space to dominate a market segment that remains vital for global connectivity, even as LEO constellations expand.

Strategic Implications for Investors

Thales Alenia Space’s tripartite strategy—advancing 5G D2D, laser communications, and flexible GEO satellites—positions it as a linchpin in the next-gen telecom infrastructure. The company’s ability to integrate terrestrial and satellite systems, pioneer secure data transmission, and offer adaptable satellite solutions aligns with three key trends: the global push for universal connectivity, the rise of data-intensive applications, and the need for resilient infrastructure in the face of geopolitical and environmental risks.

For investors, the implications are clear. The satellite telecom market, valued at over $250 billion in 2023, is expected to grow at a compound annual rate exceeding 10% through 2030, driven by 5G expansion, IoT proliferation, and the digitization of critical sectors. Thales Alenia Space’s leadership in these areas, supported by government partnerships and commercial contracts, suggests a strong capacity to capture market share. Moreover, its focus on interoperability and reconfigurability ensures that its solutions remain relevant across diverse use cases, from consumer broadband to industrial IoT and defense communications.

Conclusion

Thales Alenia Space is not merely a participant in the satellite telecom revolution—it is a catalyst. By pioneering technologies that bridge the gap between terrestrial and space-based networks, the company is addressing the most pressing challenges in global connectivity. For investors, the firm’s strategic alignment with emerging demand, coupled with its track record of innovation and commercial success, presents a compelling case for long-term growth. As the world moves toward an era of ubiquitous, secure, and resilient connectivity, Thales Alenia Space stands at the intersection of necessity and opportunity.

Source:
[1] Thales Alenia Space leads 5G direct-to-device demonstration [https://www.thalesaleniaspace.com/en/press-releases/thales-alenia-space-leads-5g-direct-device-demonstration-cnes-capgemini-and-thales]
[2] 2022: Thales Alenia Space leads the way in telecom satellite market [https://spacenews.com/2022-thales-alenia-space-leads-the-way-in-telecom-satellite-market-as-space-becomes-a-strategic-priority/]
[3] 5G via Satellite: Ericsson, Qualcomm and Thales Alenia Space revolutionize global connectivity [https://www.aerocontact.com/en/aerospace-aviation-news/95311-5g-via-satellite-ericsson-qualcomm-and-thales-alenia-space-revolutionize-global-connectivity]