SoftBank’s High Altitude Strategy: The Growing Role of LEOs and HAPs in Global Connectivity

October 2025

IoT & Emerging Technology

Sam Barker

VP of Telecoms Market Research

Japan-based network operator SoftBank has recently joined a consortium to develop and test space-based optical connectivity technologies to explore integrating non-terrestrial solutions, such as satellites and high-altitude platforms (HAPs), with ground-based stations. The consortium will launch low-earth-orbit (LEO) satellites in 2026 to test wireless optical communication technologies, followed by HAP launches in 2027. Softbank will develop the wireless communication equipment and integrate it with the HAPs systems. Kirohara Optics will build the optical communication terminals, and ArkEdge Space is responsible for the LEO satellites.

As we approach the 6G era, Juniper Research believes these architectures will become commonplace over the next 10 years; owing to their inclusion in telecoms standards, their ability to provide increased coverage at a lower cost, and the network redundancy they add to connectivity service providers.

The Role of LEOs and HAPs in Connectivity

Source: Juniper Research

A key differentiator here is the use of optical wireless technologies, rather than radio frequency radio frequency (RF) waves that are commonly used in telecoms networks today. However, while RF waves are well-suited to terrestrial networks today, several limitations may dissuade network operators from implementing them in satellite networks. These include:

• Risk of signal interception: RF signals can be more easily intercepted than optical wireless technologies, which require further investment into encryption of traffic whilst in transit. Additionally, any losses related to signal interception will diminish the value of a satellite-based network.
• Atmospheric interference: Given the large distances between network nodes and the high altitudes in networks, the changing atmospheric conditions can have substantial impacts on the consistency of network provision when RF waves are used. However, certain bands, such as the L band, are more resistant to changes in atmospheric conditions. Moreoverver, the correct placement of HAPs, including drones or balloons, can reduce the impact of interference across all bands.
• Power constraints: RF waves require heavy power consumption; requiring the equipment for antennas and amplifiers to be larger, which will result in challenges for LEO satellites and smaller HAPs.
• Spectrum congestion: There is already a heavily regulated process for spectrum allocation and acquisition in the satellite space. Additionally, as demand for satellite connectivity is expected to increase, Juniper Research predicts the cost of spectrum acquisition to rise.

Which Industries Will Drive Satellite Revenue Growth?

Juniper Research expects operators and satellite network operators (SNOs) to struggle in monetising satellite services directly. Primarily, most cellular connections are attributable to consumers (ie smartphones, tablets and other consumer devices), and the average consumer is unlikely to be willing to spend more with their network operators for specific coverage in rural or remote areas.

Operators must focus on growing revenue through enterprises, but these industries differ in their needs and requirements. Requirements such as high data throughput, fixed network end nodes, and low latency are ubiquitous across industries that will demand wireless optical technology. Juniper Research has identified the following sectors that will benefit from the technology’s introduction:

• Cloud Service Providers: Cloud providers require ultra-fast, secure data transmission between global datacentres to support real-time services and backups. Wireless optical satellite links offer high-capacity, low-latency communication without relying on congested undersea cables or RF spectrum. This enables more resilient and scalable infrastructure for cloud computing and edge services.
• Maritime: Ships and offshore platforms operate in remote regions where terrestrial and RF-based connectivity is limited or unreliable. Wireless optical satellite links provide high-speed, interference-free communication for navigation, logistics, and crew welfare. This improves operational efficiency and safety, while supporting digital transformation at sea.
• Smart Energy: Smart grids, wind farms, and solar installations often span vast or remote areas that lack robust terrestrial connectivity. Wireless optical technology enables secure, high-bandwidth data exchange between satellites and ground-based energy assets. This supports real-time monitoring, predictive maintenance, and efficient energy distribution.
• Military & Defence: Military operations demand secure, resilient communication across global theatres, often in contested or remote environments. Optical satellite links are harder to intercept or jam than RF; making them ideal for encrypted, mission-critical data transfer. They support battlefield awareness, drone coordination, and strategic command systems.
• Remote Infrastructure: Mining sites, research stations, and large-scale construction projects often operate far from traditional networks. Wireless optical satellite communication enables reliable, high-speed connectivity for automation, safety systems, and remote diagnostics. This reduces downtime, enhances productivity, and supports digital integration across isolated assets.

What Does Juniper Research Expect to Happen?

We believe there will be increased investment in wireless optical technologies. This technology uses modulated light to transmit data through the air and vacuums; providing high-speed, secure communication. Unlike RF technologies, it does not rely on radio waves or spectrum licensing; making it ideal for environments with RF congestion or restrictions. However, it must be noted that it requires line of sight, and the level of service is also dependent on weather conditions.

Given the differences between RF-based technologies and optical wireless networks, how do network operators implement these technologies to maximise revenue generation? Both technologies offer distinct benefits and constraints, therefore Juniper Research believes that future LEO-based networks will include both technologies, and Softbank must ensure it can test satellites with both antennas moving forward.

However, while increased coverage has been outlined as a key benefit of using satellites, it must be stressed that this creates issues with indoor coverage. The idea that satellites will ‘commoditise’ wireless connectivity is not proper. Other technologies must be used in conjunction with satellites for actual ubiquitous coverage. Indeed, as we approach the 6G era, we expect network operators to use a range of different network equipment types, such as HAPs and other small cells, to maximise indoor and outdoor coverage. The challenge operators face is minimising the investment needed to provide maximum coverage.

As VP of Telecoms Market Research at Juniper Research, Sam produces high-quality research on telecommunications technologies and the future of digital content. His recent reports include 5G Satellite Networks, CPaaS, and Operator Revenue Strategies. Sam has been interviewed by leading media outlets, including the BBC and Wall Street Journal, and is a regular contributor to messaging conferences and telecommunications industry events.