There is a quiet problem in the IoT world that most people do not talk about enough. We have billions of connected devices. Smart meters. Agricultural sensors. Fleet trackers. Environmental monitors. Yet the moment you move outside major population centers, connectivity becomes fragile. Oceans, forests, mountains, large agricultural fields, and remote industrial sites still fall into coverage gaps.

Cellular networks are impressive, but they were never designed to cover the entire planet.

That is why the announcement from Latvian technology company LMT Group deserves attention. The company has launched a 12-month strategic development initiative together with the European Space Agency to build what could become a new standard in universal IoT connectivity: a dual-mode IoT module that works seamlessly across both terrestrial mobile networks and satellite networks.

If they succeed, IoT devices may no longer need to “choose” between cellular and satellite. They could simply use both.

A Dual-Mode Vision

At the heart of the project is a simple idea with complex engineering behind it.

Develop an IoT module capable of autonomously switching between traditional cellular networks and Non-Terrestrial Networks, or NTNs. NTNs include satellite connectivity, particularly Low Earth Orbit systems that are increasingly being integrated into the 5G ecosystem.

Instead of requiring separate hardware for cellular and satellite, LMT’s IoT team aims to design a cost-effective hardware module combined with a software suite that enables automatic switching between the two connectivity modes. The device would transition between links without user intervention and without data loss.

That matters more than it sounds.

In industrial IoT, losing even small amounts of data can disrupt monitoring systems, logistics chains, or safety alerts. Autonomous switching ensures continuity. The device decides, not the user.

This is not just about coverage. It is about reliability.

From Concept to Laboratory Proof

The collaboration with ESA is structured as a technology maturation effort. The project aims to advance from Technology Readiness Level 2, which represents a formulated concept, to Technology Readiness Level 3, meaning laboratory-validated proof of concept.

That may sound incremental, but in space and telecom innovation, moving one TRL level forward can represent significant validation.

ESA’s involvement is not symbolic. The agency brings expertise in satellite systems, space connectivity, and integration into broader European secure connectivity frameworks. For LMT, this is an opportunity to anchor its innovation inside the European space ecosystem.

Building on IoT Shortcut

The technical foundation for this project is LMT’s IoT Shortcut, one of the world’s smallest mobile data modules. On top of that base, LMT’s IoT team plans to develop a dual-mode System-on-Module, or SoM.

The objective is to simplify space-based communication rather than treat it as an exotic, high-cost layer.

Equally important is the software side. LMT IoT will develop a high-level Software Development Kit that translates complex satellite modem controls into simple developer commands. In other words, the hardware might switch between terrestrial and satellite links automatically, but developers also need abstraction layers to integrate that capability easily.

This SDK could determine whether the project becomes niche or scalable. Developers do not want to manage orbital parameters. They want connectivity that behaves like an API.

Strategic Partnerships in Orbit

The project is not limited to LMT and ESA.

The initiative includes collaboration with Sateliot, the first LEO satellite operator providing global NB-IoT connectivity aligned with 3GPP standards and 5G NTN roaming for telecom operators. Knowledge support will also come from the Ventspils International Radio Astronomy Centre.

Sateliot’s involvement is particularly important because it bridges terrestrial and satellite standards within the 3GPP framework. That means the ambition is not to create a proprietary system, but a standardized Rel-17 TN-NTN module aligned with evolving 5G specifications.

Ingmārs Pūķis, VP & Member of the Management Board at LMT, explains the motivation clearly:

“Many devices remain too complex, expensive, or unavailable in the required market formats, especially for low-power IoT solutions. LMT is removing this exact barrier by developing a module that provides connectivity in cities, rural areas, and beyond traditional mobile coverage, without requiring two separate devices or complex configurations. This creates new opportunities for companies to participate in ESA and EU secure connectivity programs and allows LMT to take on a more significant role in the European space and telecommunications innovation ecosystem”

Frank Zeppenfeldt, Project Lead at ESA, adds:

“We are very pleased to see that LMT, as an innovative mobile network operator, is taking the initiative to integrate future NTN networks in its IoT service offering”

And from Sateliot’s side, Joaquín Cruces, R&D Engineer, highlights the integration challenge:

“For Sateliot, this project is strategically important because it enables the development of a standardized 3GPP Rel-17 TN-NTN module, bridging two technologies that are individually at high TRL but have not yet been fully integrated into a seamless, market-ready dual-mode solution. By supporting the maturation of a unified terrestrial and satellite IoT ecosystem, Sateliot strengthens its position as a 5G NTN operator, accelerates device availability for its network, and reduces barriers for mass-market adoption of direct-to-satellite IoT services”

Why This Matters Now

The timing is not accidental.

Direct-to-satellite connectivity is moving from experimental to commercial. Apple’s emergency satellite messaging, Qualcomm’s NTN chip integrations, and 3GPP Rel-17 standards have accelerated the conversation around hybrid connectivity models.

But most existing implementations remain fragmented. Devices either support satellite as a separate channel or require distinct hardware configurations.

What LMT and its partners are attempting is deeper integration. A unified module that treats terrestrial and satellite connectivity as a single logical system.

For European industry, this is also strategic. The EU has been investing heavily in secure connectivity initiatives and sovereign satellite capabilities. A standardized dual-mode IoT module developed within Europe aligns with that geopolitical ambition.

Market Context and Competitive Landscape

Globally, players such as Iridium, Globalstar, and emerging LEO constellations have long targeted satellite IoT. At the same time, terrestrial IoT ecosystems dominated by LTE-M and NB-IoT have matured under traditional mobile network operators.

The convergence of the two is where the market is heading.

According to industry analyses from GSMA and other telecom research bodies, NTN integration into 5G networks is expected to unlock new revenue streams in agriculture, maritime, logistics, and environmental monitoring. The challenge has never been use cases. It has been cost and complexity.

If LMT’s dual-mode SoM succeeds in lowering both, it could position European operators competitively against US- and Asia-led satellite initiatives.

What This Signals for IoT

For Alertify readers who follow connectivity trends closely, this development signals something bigger than a single hardware module.

It reflects a structural shift. Connectivity is no longer categorized as either terrestrial or satellite. It is becoming layered, fluid, and context-aware.

The real value is not in adding satellite capability. It is in removing the boundary between networks.

Conclusion

This project sits at the intersection of telecom evolution and European strategic autonomy. By moving toward a standardized 3GPP Rel-17 TN-NTN module, LMT, ESA, and Sateliot are aligning with global 5G NTN trends while reinforcing Europe’s role in shaping that ecosystem.

Compared with legacy satellite operators that operate in parallel to mobile networks, this approach integrates rather than competes. Compared with purely terrestrial IoT modules, it expands coverage logic without multiplying hardware costs.

If the laboratory validation phase proves successful, the next critical step will be commercialization and ecosystem adoption. Developers, operators, and enterprise clients will determine whether dual-mode modules become mainstream or remain specialized.

But one thing is clear.

The future of IoT connectivity will not be defined by coverage maps. It will be defined by how intelligently devices move across networks.

And Europe wants a seat at that table.