Direct-to-device (D2D) satellite connectivity is emerging as one of the biggest new opportunities in the global telecom industry, with investment topping $40 billion over the past year as mobile operators, satellite companies and smartphone makers race to extend mobile services beyond traditional cellular networks.
Commercial deployments show that D2D’s immediate advantage is not high-speed mobile broadband but coverage in rural areas, remote locations, maritime environments and disaster zones. Operators are viewing satellite connectivity as a complementary layer that can keep subscribers connected when terrestrial mobile networks are unavailable, Ookla report said.
Real-world network measurements from Ookla and RootMetrics also indicate that D2D adoption is accelerating, although usage varies substantially by country because of differences in spectrum availability, regulation, device compatibility, pricing and operator partnerships.
$40 Billion Investment Puts D2D Satellite Connectivity in Telecom Spotlight
More than $40 billion has been invested in D2D technology during the past year alone, highlighting the growing strategic importance of satellite-to-smartphone connectivity.
The technology allows compatible smartphones and other mobile devices to communicate directly with satellites, potentially filling coverage gaps without requiring conventional mobile towers nearby.
Commercial services are expanding as telecom operators form partnerships with satellite providers and handset manufacturers introduce support for satellite connectivity. However, availability has not automatically translated into high adoption.
Australia has emerged as one of the more mature D2D markets, recording relatively sustained satellite usage, although D2D still represents only a tiny fraction of overall terrestrial mobile network traffic.
The UK has expanded rapidly from a low base following O2’s launch with Starlink, while Japan continues to show relatively low usage despite being an early mover.
Usage in the U.S. and Canada has cooled somewhat, potentially reflecting the impact of changing promotional offers and seasonal usage patterns. Operators are increasingly shifting from free or promotional access toward charging an additional D2D fee or including satellite connectivity with more expensive premium mobile plans, creating an opportunity to improve ARPU.
In Southeast Asia, Globe launched the Philippines’ first commercial D2D service, with network measurements indicating testing activity months ahead of the official launch.
D2D Delivers Around 90 Percent Text Success in U.S. Drive Tests
Coverage rather than speed is currently the strongest selling point for D2D satellite connectivity.
RootMetrics drive testing across the U.S. during the first half of 2026 found D2D successfully completed roughly nine out of every ten text messages from a moving vehicle.
That is significant because early satellite-to-device systems were largely designed around stationary usage with a clear view of the sky.
D2D activity is particularly visible in rural regions where terrestrial mobile coverage gaps remain. In Oregon, D2D connections appeared in as much as 5.7 percent of drive-test samples, with usage concentrated in rural areas.
These results illustrate the technology’s near-term opportunity: not replacing 4G or 5G networks, but providing basic connectivity where conventional networks cannot reach economically or where mobile infrastructure is temporarily unavailable.
Venezuela Earthquakes Show D2D’s Emergency Communications Potential
Emergency communications could become one of the most important applications for satellite-to-phone services.
Following earthquakes in Venezuela, regulators quickly authorized D2D services and all three national mobile operators partnered with Starlink.
Network measurements showed D2D satellite connections carrying mobile services in some of the hardest-hit locations while terrestrial network scan counts declined as electricity and communications infrastructure failed.
Ookla compared network measurements with seismic activity information from the U.S. Geological Survey and found that areas experiencing the most severe shaking also recorded the greatest volume of D2D satellite connections.
The experience demonstrates how D2D could strengthen mobile network resilience during earthquakes and other natural disasters when terrestrial infrastructure is damaged.
D2D Could Expand from Messaging to Voice and Mobile Data
Most current D2D deployments concentrate on messaging, emergency communications and bandwidth-light applications. The industry’s longer-term objective is significantly more ambitious: delivering voice, data and messaging directly to existing mobile devices.
For consumers, the critical development will be seamless switching between cellular, Wi-Fi and satellite networks without requiring users to manually select or authenticate a connection.
The evolution could resemble Wi-Fi integration technologies such as Passpoint, which made movement between Wi-Fi and cellular networks more seamless.
D2D adoption could accelerate when satellite access no longer requires significant user intervention or a premium tariff add-on and instead becomes a standard component of mobile subscriptions, similar to how 5G access gradually became bundled into mainstream mobile plans.
However, new handsets may be required to take advantage of additional satellite spectrum being acquired to increase D2D capacity.
Europe D2D Satellite Rollout Could Be Delayed Until 2028
Regulation and spectrum policy will have a major influence on the speed of D2D expansion.
Commercial D2D availability in Europe remains limited outside the UK and Ukraine, with regulation rather than technology emerging as a key barrier.
The European Commission has outlined plans to divide the 2 GHz Mobile Satellite Service (MSS) spectrum band into three categories: one supporting government-facing services, another reserved for European companies, and a third open to all participants, including international satellite companies.
The approach aims to balance commercial satellite connectivity with government requirements and European sovereignty over strategic communications infrastructure.
Broader European D2D deployment may consequently have to wait until 2028 or later, potentially following the next World Radiocommunication Conference.
FCC Opens More Spectrum Pathways for D2D in the U.S.
The U.S. is taking a more aggressive approach to enabling satellite-to-mobile services.
The Federal Communications Commission has opened additional spectrum bands for D2D and enabled Starlink to acquire AWS-3 spectrum through re-auction.
Private spectrum transactions could create further opportunities, including a potential 800 MHz spectrum lease involving Grain Management and a D2D provider.
Australia is following a different regulatory model. Its Universal Coverage Obligation is expected to take effect next year, potentially allowing operators to provide a baseline level of D2D coverage for emergency communications.
Most regulators, however, do not currently consider D2D satellite coverage a replacement for terrestrial mobile network coverage obligations.
Telecom Operators Explore D2D Pricing and ARPU Opportunities
Creating a sustainable commercial model remains one of the industry’s biggest challenges.
Most mobile operators are unlikely to build their own satellite constellations. Instead, they are partnering with satellite companies that provide infrastructure, spectrum or both while operators retain their customer relationships.
AST SpaceMobile is pursuing the mobile-operator partnership approach.
Device-led satellite partnerships represent another model. Apple has used a satellite partnership strategy based on MSS spectrum rather than shared terrestrial mobile spectrum.
A third possibility is direct-to-consumer satellite mobile service, in which satellite companies bypass conventional mobile operators. Such a model has been discussed around Starlink Mobile, although regulatory requirements make widespread deployment difficult in many markets.
Pricing strategies remain fluid. Some mobile operators include D2D connectivity in premium plans, while others have used free trials to encourage adoption. Operators are also testing satellite services as a potential ARPU driver.
Revenue-sharing arrangements between satellite providers and mobile operators continue to be negotiated individually, while industry consolidation could increase as companies compete for scarce spectrum, satellite capacity and operator partnerships.
$8 Billion Iridium Spectrum Bid Highlights Battle for Satellite Assets
The next stage of D2D expansion will depend not only on spectrum but also on the industry’s ability to launch larger and more capable satellites.
Larger satellites can potentially deliver stronger D2D performance but require powerful rockets and dependable launch schedules. Only a limited number of companies currently possess the necessary launch capabilities.
SpaceX’s Starship heavy-lift rocket is therefore important to several satellite expansion strategies, while launch setbacks elsewhere illustrate how rapidly deployment schedules can change.
The growing strategic connection between launch capability and spectrum is also reflected in Rocket Lab’s planned $8 billion bid for Iridium’s spectrum assets.
The proposed transaction demonstrates how valuable satellite spectrum could become as companies position themselves for the next stage of direct-to-device communications.
Smartphone Compatibility Could Slow Mass D2D Adoption
Device support represents another major obstacle.
Even when new satellite spectrum bands are incorporated into 3GPP standards, smartphone manufacturers are not required to support every approved band.
This could create a long replacement cycle before satellite-compatible smartphones reach mass-market penetration. Consumers often keep smartphones for several years, meaning support for newly approved MSS bands may take considerable time to spread across the installed device base.
Handset makers, mobile operators and satellite providers will therefore need greater coordination if D2D is to move beyond emergency communications and become a standard mobile network feature.
D2D Satellite Could Become the Third Layer of Mobile Connectivity
Direct-to-device satellite connectivity has progressed from demonstrations to real commercial networks. More than $40 billion of investment, roughly 90 percent text-message success in U.S. drive testing, D2D activity in up to 5.7 percent of Oregon drive-test samples, potential broader European deployment from 2028 or later, new 800 MHz and AWS-3 spectrum opportunities, and a planned $8 billion Iridium spectrum bid demonstrate how quickly the market is evolving.
The biggest opportunity is not replacing terrestrial 4G or 5G networks. D2D can instead become an additional coverage layer alongside cellular and Wi-Fi, providing connectivity where towers cannot economically reach or where terrestrial networks have been disrupted.
For telecom operators, the next phase will depend on spectrum availability, smartphone compatibility, satellite launch capacity, network integration and viable pricing models. If those pieces come together, satellite connectivity could evolve from an emergency smartphone feature into a standard component of mobile subscriptions — extending mobile coverage far beyond the traditional limits of terrestrial networks.
BABURAJAN KIZHAKEDATH
