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I would be very surprised if it is a satellite based system. I have a satellite phone, and the voice clarity is nothing compared to the X5's. (The codec used for satellite is very, very high compression, and the latency in voice communication is noticeable. Neither is true with BMW Assist.) I am betting they say it is satellite because of the GPS integration with the overall service.
There would really only be two vendors that it could be: Globalstar and Iridium. (I have Iridium.) Neither can penetrate tunnels, etc., unless they have ground repeaters VERY close to the tunnels. I've had my X5 in a tunnel where the BMW Assist was active. I had cell phone coverage as well.
Joel
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