Lockheed Martin And Omnispace Take On SpaceX With Plans For Space-Based Internet

Lockheed Martin Corporation (NYSE: LMT) and Omnispace, LLC, have entered into a strategic interest agreement to explore the development of a space-based 5G network.

What Happened: On Tuesday, Lockheed Martin, a global security and aerospace company, announced its plan to develop a global 5G standards-based non-terrestrial network (NTN) network with Omnispace, a global communications provider. The project is intended to provide government, commercial and enterprise devices with the ability to communicate seamlessly and reliably.

“Seamless, global 5G connectivity has a wide range of civil and commercial applications. It also brings the coverage and capacity to support defense, government and military use, including mobile joint all-domain interoperable communications,” Lockheed wrote in the press release.

Why It Matters: The space-based network would eliminate the need for ground terminals and provide 5G capabilities direct from space to telecommunication devices, according to a CNBC report. This puts Lockheed and Omnispace into competition with SpaceX, a private company owned by Tesla Inc (NASDAQ: TSLA) CEO Elon Musk, which is in the testing phase of its Starlink satellite network service.

Both Starlink and the Lockheed/Omnispace networks would provide internet in areas of the globe where there is currently no connectivity.

“This type of network has the potential to redefine mobile communications, benefiting users requiring true mobility, regardless of environment or location,” Lockheed wrote.

(Photo: Lockheed Martin image of Orion, another LM space project)