Space-based IoT connectivity player Sateliot declared itself on the brink of launching commercial operations worth a potential €187 million in annual revenue, a move which could challenge mobile operator business models.

The company outlined plans to launch four low Earth orbit satellites by the middle of the year, clearing the way for it to begin offering low-cost mobile data services in the second half.

Sateliot said its revenue potential comes from an order book spanning more than 350 customers in over 50 nations and sets it on a path to generate €500 million within three years of service launch.

It targets annual revenue of €1 billion by 2030.

Reuters reported Sateliot’s customers are mainly located in nations including Canada and South Africa, where mobile network coverage is not ubiquitous.

The news agency added Sateliot co-founder and CEO Jaume Sanpera told it the company is seeking to raise €100 million in equity to fuel its ambitions, having already committed around €25 million to develop and launch a pair of test satellites along with the quartet which will spearhead its service launch.

In its statement, Sateliot explained it had previously secured €13.5 million through an investment by Banco Santander, a convertible note and a loan from a private equity group.

Sateliot explained its birds are around the size of a microwave oven and are 3GPP compliant, meaning they can deliver 5G data rates.

It initially aims to target sectors requiring only periodic bursts of two-way communications before moving on to more complex areas needing real-time connectivity.