SIOT (IEU TI)

The project relates to the final phases of development of a low earth orbit (LEO) nanosatellite constellation to provide 5G IoT services for low bandwidth non-time-sensitive applications globally, notably in areas where terrestrial networks do not have coverage. The project will also include investments in a 4-satellite pilot constellation to test the system's full functionality end-to-end, and 40 additional satellites to validate the market-entry constellation launch and its operation at scale.

The main objectives are the deployment of satellite communication infrastructures targeting uncovered areas worldwide and European innovation. The project will also contribute to highly skilled job creation in Spain. It supports an emerging European leader in satellite communications, bringing narrowband internet-of-things services directly to terrestrial 5G IoT devices from space. The financing thereby develops the strategic EU "New Space" industry, in line with EU space policy and strategic autonomy goals. The company's network will serve a variety of industries globally, allowing to potentially connect to millions of currently unserved IoT devices in areas unreachable by terrestrial IoT networks. This will help businesses monitor their assets, in industries such as agriculture, fishing, maritime, oil and gas, wildlife, utilities, environmental, livestock, etc. Generally, for outdoor, non-time-sensitive, rural, or oceanic IoT applications. The project can also have a positive impact on the climate transition by allowing some industries to optimise consumption of fuel and natural resources.

The project aligns with InvestEU objectives of developing the space sector, the EIB Strategic European Security Initiative, and the Green Deal. Sateliot is a Spanish "New Space" pioneer aiming to offer low-cost "narrowband Internet-of-Things" with small satellites, affordably serving millions of unconnected devices in remote areas uncovered by terrestrial IoT networks.

Sateliot will deploy a satellite constellation to provide rural IoT coverage as wholesaler to mobile network operators, who can then offer end-customers global IoT coverage by extending own terrestrial urban networks with rural satellite connectivity. It will support operators serving industries such as agriculture, fishing, maritime, oil & gas, wildlife, utilities, environmental, infrastructure, defence, or livestock, mostly outdoor, non-time-sensitive rural IoT use cases. This can have a positive impact on the climate transition, by optimising consumption of fuel, natural resources, etc.

The venture loan will co-finance research & development and capital investments, mainly in Spain (EU). This addresses multiple EU policy goals and market failures: funding deep tech innovation, supporting European security, defence, and strategic space autonomy, create positive R&D spill-over externalities, and correct SME information asymmetries and investment gaps in European venture capital markets.

More specifically, the project will support the further development of Sateliot's small satellite platform for narrowband IoT, adding more functionality and efficiency to new satellites and connectivity services. This will improve access, pricing, quality, and frequency of space IoT connectivity for numerous terrestrial applications currently unserved to due high pricing.

The loan will grant risk capital at longer maturities and later repayments than current market standards for venture debt, allowing greater managerial focus on business execution thanks to a more stable capital structure. The EIB support will signal an EU stamp of approval to the market, requiring further crowding-in of new capital to unlock the full EIB loan. The project would not be carried out by the EIB without the InvestEU support. 

The investments will concern mostly research and development (R&D) activities carried out in already existing facilities. Therefore the project does not fall under Directive 2014/52/EU amending the EIA Directive 2011/92/EU.

The company is a private company not operating in the Utilities sector and does not have the status of a contracting authority. Consequently, the company is not covered by EU Directives on public procurement