Lockheed Martin’s (NYSE:LMT) space division on Tuesday announced a strategic interest agreement with satellite start-up Omnispace, “to explore jointly developing 5G capability from space.”
“This really stems from a common vision of a global 5G network, which enables users to seamlessly transition between the satellite [and the] terrestrial network,” Omnispace CEO Ram Viswanathan told the media.
Viswanathan highlighted Lockheed Martin’s “depth of expertise” in a variety of markets, most notably with a wide swath of customers from the Department of Defense.
“Their appetite never dulls and the kind of need they have for communications across the board,” Lockheed Martin Space executive vice president Rick Ambrose told the media.
“Omnispace has a very powerful vision of how to offer the service … [and] how you get it down to a mobile device.”
Ambrose said the two companies have been interacting for about a year. The strategic interest agreement further cements the pair working toward a hybrid network that combines the reach of a global satellite network, known in the industry as a constellation, with the capacity of mobile wireless carrier networks.
The partnership puts the companies in the widening field of space-based data communications, with potential competitors including Elon Musk’s SpaceX consumer-focused Starlink broadband service, satellite-to-smartphone specialist AST & Science, and the enterprise-focused networks of OneWeb and Telesat.
Viswanathan recognized the other players building low Earth orbit satellite communications constellations, but differentiated Omnispace as offering a “direct to device capability” — rather than the “expensive and bulky” ground terminals that are required for users to connect to other space-based networks.
LMT shares gained 34 cents to $358.00