MNOs and OEMs need to adopt Satellite D2D now

The Pros and Cons of Two Different D2D Satellite-to-Cellphone Paths

Mobile service providers that decide to offer satellite-to-cellphone service can choose between two primary paths. They can let a satellite operator use some of their cellular spectrum or they can use spectrum intended for satellite use — spectrum that typically is controlled by the satellite operator. A new report from Analysys Mason explores the pros and cons of the two direct-to-device (D2D) options.

It’s an important topic, as some industry observers see big potential for D2D services and as mobile providers map out their strategies for addressing this opportunity.

In the U.S., T-Mobile, AT&T, and Verizon all have made cellular spectrum available to satellite provider partners. T-Mobile has a deal with Starlink, while AT&T and Verizon have deals with AST SpaceMobile. In addition, Verizon has a deal with Skylo that will use satellite spectrum. And Apple has a deal with Globalstar that also uses satellite spectrum.

Currently, D2D services are limited to SOS emergency alerts and possibly short message services. But, over time, services are expected to include voice and data.

D2D Pros and Cons

Overall, Analysys Mason favors the use of satellite spectrum. The authors point to a high level of global alignment for the satellite spectrum bands, known as the L-band and S-band. But not all countries have taken the necessary regulatory steps to allow providers to use cellular spectrum for satellite communications.

The authors also argue that the use of satellite spectrum is less likely to cause interference with cellular network operations.

The downside of using satellite spectrum, however, is that service is not backwards compatible with existing cellphones. As of now, only a few cellphone models support connectivity over the L-band and S-band.

As manufacturers begin to introduce new models that can communicate in satellite spectrum, however, they are likely to add other capabilities that will enable D2D service to integrate more seamlessly with traditional cellphone functions, the authors argue.

Satellite D2D spectrum
Source: Analysys Mason: MNOs and OEMs need to adopt Satellite D2D now

A Call to Action

Whatever strategy mobile operators choose, they shouldn’t procrastinate in preparing for the D2D opportunity, Analysys Mason advises.

The authors cite research showing that 82% of users considering switching mobile providers within the next six months expressed interest in D2D messaging services.

“This strong correlation suggests that D2D features such as off-grid messaging and SOS can be powerful differentiators in customer retention strategies,” the authors note.

Currently, most mobile operators are offering basic D2D capabilities such as SOS emergency alerts for free. But operators may be able to charge for services as those services become more sophisticated. Thirty percent of respondents to an Analysys Mason survey expressed willingness to pay for D2D messaging services.

Alternatively, providers may consider including D2D services in a premium tier to attract more users to that tier.

The authors close with a call to action.

“The decisions made in 2025 will shape the industry’s trajectory for years to come,” they argue. “D2D is evolving fast, and those who lead now will define its value, own the user experience and set the standard for what always-on connectivity means in the next era of mobile connectivity.”

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