The 2026 Optical Fiber Communications Conference (OFC) will shine a spotlight on one of the biggest shifts in telecom: the fast-blurring line between terrestrial fiber networks and optical satellite links. Siegbert Martin from Tesat-Spacecom plans to share how space-based optical networks are stepping out of the shadows and into the mainstream, changing the way data moves, stays secure, and gets accessed worldwide.
The Two-Level Transformation of Space Communications
For years, satellites mostly used radio and microwave links. Meanwhile, fiber-optic cables on the ground handled the heavy lifting for high-capacity data.
That division? It’s quickly disappearing. Martin describes a two-level digital transformation in space communications that not only mirrors the terrestrial fiber boom but also pushes it further.
From Isolated Satellites to Interconnected Optical Networks
The first big shift is moving from standalone satellites to densely interconnected constellations using optical inter-satellite links (OISLs). These links work a lot like fiber in space, letting data hop from satellite to satellite at lightning speed and with very little delay.
Instead of satellites acting solo, these constellations now function as coherent optical networks orbiting above us.
Digital Transformation Onboard the Satellite
The second transformation happens inside each spacecraft. Modern satellites now include advanced digital signal processors (DSPs)—the same kind you’d find in ground-based optical transport systems.
With these DSPs, satellites can handle advanced modulation, error correction, routing, and monitoring right in orbit. That brings a whole new level of flexibility and smarts to the space segment.
Blurring the Boundary Between Earth and Space
As these technologies mature, the old barrier between ground networks and space infrastructure is fading fast. Optical satellite links aren’t just a separate layer anymore—they’re becoming a true extension of the global communications grid.
Toward a Single, Unified Communications Ecosystem
Now, space and terrestrial networks can be engineered as a single ecosystem. Traffic can move through fiber or satellite, depending on factors like cost, latency, congestion, or resilience.
Key Drivers: Cost, Capability, and Resilience
This shift isn’t random. Martin points to three big reasons why optical satellite networks are finally ready for prime time, both technically and commercially.
Rapid Cost Decline in Laser Communication Terminals
In just the past few years, the price of laser communication terminals (LCTs)—the gear that connects satellites optically—has dropped a lot. What used to be rare, pricey hardware is now entering mass production territory.
This price drop is key for building huge constellations with hundreds or even thousands of optically linked satellites.
Onboard DSP Integration and Terrestrial Tech Reuse
The next driver is the integration of advanced DSPs onboard satellites. Instead of reinventing the wheel, the industry is reusing proven terrestrial optical networking components, architectures, and algorithms.
By adapting what already works on the ground, satellite makers can move faster and with more confidence.
Growing Demand for Resilient, Independent Infrastructure
The third driver is all about resilience. Even with their huge capacity, terrestrial fiber networks can still be knocked out by physical damage or even deliberate attacks.
Optical satellite networks provide a geographically independent, highly resilient backup and complement to ground infrastructure. For governments, businesses, and critical services, this extra layer of diversity feels more like a necessity than a luxury.
Why Optical Beats Microwave in Space
Microwave and radio frequency (RF) links still matter, but optical satellite communications bring some pretty big advantages that put them at the forefront for future space networks.
High Capacity, Security, and License-Free Operation
Optical links in space can deliver:
These features make optical communications super appealing for both commercial and sensitive government or defense needs.
Industrial Scale-Up and Market Realignment
This move to optical networking in space isn’t just about technology—it’s shaking up the industry and supply chains in a big way.
From One Terminal a Year to One a Day
Tesat-Spacecom is a great example. They used to make about one optical terminal per year. Now, they’re up to one terminal per day, with plans to hit five to ten terminals daily soon.
That’s a massive jump, shifting from custom, slow aerospace manufacturing to a high-volume model more like what you’d see in semiconductors or telecom gear.
New Entrants, Privatization, and Partnerships
With optical satellite communications maturing, the market is exploding. New players are jumping in, and privatization and commercialization are speeding up across the board.
It’s a lively, competitive scene that’s driving innovation and pushing costs down, which just adds fuel to the fire for more growth.
Looking Ahead: Constellations, 5G/6G, and Direct-to-Device
Martin’s outlook stretches far beyond today’s early systems. He sees a future packed with tightly integrated optical satellite constellations, working hand-in-hand with terrestrial networks and mobile infrastructure.
Ubiquitous Connectivity and Ground–Space Co-Design
In the next decade, we’re looking at some big changes:
This shift means the ground-based telecom folks and the space industry will really need to work together. They’ll have to co-design network planning, protocols, security, and service models across both Earth and orbit.
Here is the source article for this story: A Transforming Communications Industry