Photo: ST Engineering iDirect

The satellite industry is undergoing a seismic shift. With competition heating up from players like SpaceX and Amazon, and the horizontal consolidation of satellite operators, the sector is being compared to the Apple-Android rivalry — a clash of walled gardens and open ecosystems.

But there’s a new approach on the horizon. ST Engineering iDirect is introducing “diagonalization,” a concept intended to break down the rigid silos of traditional vertical and horizontal models, paving the way for a more integrated business approach. This strategy aims to drive the interoperability the satellite industry needs while aligning with the broader telecom and tech landscape.

The industry has long debated the benefits of different orbits and standards, but ST Engineering iDirect CEO Don Claussen believes it’s time to broaden the conversation to business models. “Vertically integrated models seek full control at the expense of interoperability and customer choice, while horizontal approaches often rely on broader ecosystems that can lack agility,” Claussen explains. “Diagonal integration offers a third path—breaking down these silos for a seamless user experience that aligns satellite services with telcos and wireless providers – where standardization and collaboration are essential.”

Claussen emphasizes that the conversation about different orbits should focus on their strengths — flexibility and scalability — rather than viewing them as rivals. “Most networks will adopt multi-orbit solutions, not just a single path. We need to move away from perceiving companies or orbits as competition and instead consider how to integrate all available options,” he says.

Many satellite operators are already taking this approach. For example, GEO operators are leveraging multiple ground vendors to enhance their networks’ resilience, manage risks and ensure business continuity. The industry is evolving, embracing new technologies to expand capabilities.

According to Sridhar Kuppanna, Senior Vice President of Engineering at ST Engineering iDirect, customer demand is shifting from proprietary solutions toward a multi-vendor approach, fueling a push for standards-based integration. “With 5G-NTN (Non-Terrestrial Networks) on the horizon, satellite networks need to seamlessly interact with terrestrial networks,” Kuppanna explains. “New high-throughput, software-defined satellites require standards-based APIs and end to end orchestration critical for integrating space and ground solutions.”

ST Engineering iDirect executives: SVP of Corporate Strategy Cynthia Harty; CEO Don Claussen; and SVP of Engineering Sridhar Kuppanna.

Overcoming Roaming and Network Integration Challenges

Achieving seamless integration presents challenges, Kuppanna acknowledges. ST Engineering iDirect is working on enabling roaming across different satellite and terrestrial networks, while also addressing operational support system (OSS) and business support system (BSS) consolidation. Claussen adds that “growing pains” are expected as large satellite operators consolidate and service providers integrate multiple systems.

Customers are looking to ST Engineering iDirect to facilitate multi-orbit, multi-network connectivity, notes Cynthia Harty, Senior Vice President of Corporate Strategy. “The value of roaming is undeniable, and we’re collaborating with partners to bring this capability to market,” she says. The company is driving future standards for service orchestration across competing networks.

“The idea of deploying iDirect’s waveform and software on non-iDirect hardware was unthinkable five years ago. Now, it’s a requirement,” Harty says. “We have to understand our customers’ growth projections and enable them.”

With vertical approaches from companies like SpaceX pushing the industry to rethink strategies, pursuing standards that offer customers more flexibility is essential, especially amid horizontal consolidations. Newly merged operators like SES/Intelsat and Viasat/Inmarsat have mixed infrastructure, presenting a choice: overhaul everything for a single vendor or enable interoperability.

“The future lies in a ‘network of networks’ where everything is connected. Developing compatibility is foundational for seamless connectivity. No one solution fits all, and customers need to start where they are, with the investments they’ve already made,” says Kuppanna. “An ecosystem where networks co-exist is crucial.”

Operators and service providers are increasingly dependent on diverse ground systems to meet scaling and resiliency needs. “Offering more technology options gives our customers a competitive edge,” Kuppanna adds. “We’re embracing that reality.”

Adapting to a Changing Landscape

Claussen points out that the industry has recognized the need to standardize and collaborate.

“The new entrants have demonstrated that loud and clear. We’ve paid attention and now it’s opportunity time. We – the ecosystem – have something more expansive to offer. I think it’s time to clearly differentiate ourselves,” Claussen says. “Technology is accelerating rapidly from the cloud to automation. Partnerships between and beyond the satellite industry are creating enormous value that will benefit customers and users immeasurably.”

Efforts by industry groups like DIFI, WAVE consortiums, and 3GPP standards are key to enabling diagonalization and interoperability across vendors. Customers are already engaging with these bodies to drive standards for digital IF/RF and 5G NTN adoption.

These changes demand more than technological advancements—they require new ideas and flexible approaches. “Telcos are looking to add value beyond just providing a data pipeline. Our focus will be on higher-layer applications and can leverage the intelligence in the network to create greater value,” Kuppanna adds.

In the coming months, ST Engineering iDirect plans to test its new INTUITION ground system with customers in their own network environments, alongside continuing to deliver proof-of-concepts showcasing what standards can achieve. Claussen emphasizes that seeing is believing. “PowerPoint slides can’t show the true value of a solution. But once customers experience Intuition’s virtualization and multi-orbit capabilities, they’ll start to embrace these advancements,” he says.

The release of INTUITION for testing marks a pivotal step forward—inviting the industry to explore, experience, and envision a path to the future.

Claussen summarizes “The concept of diagonalization is more than just a buzzword; it is a call for the satellite industry to rethink its foundational business models. By facilitating greater integration and interoperability, ST Engineering iDirect aims to unlock new possibilities for seamless connectivity across orbits and networks, positioning itself at the forefront of the multi-orbit revolution.”

The future of satellite communications is not about choosing sides in a binary battle—it’s about breaking down barriers, connecting the dots, and building a truly interconnected digital world.