D2D Market Could Support Numerous Operators and Spectrum Approaches

Expect lots of satellite operators in the direct-to-device space using myriad approaches, from reusing terrestrial spectrum, using satellite spectrum or something else altogether, satellite company executives said Tuesday during a SpaceNews webinar. Multiple satellite operators beat the drum for the FCC's supplemental coverage from space (SCS) framework adopted in March (see 2403140050). Other large regulators will follow suit and put forward SCS frameworks, Lynk Global Chief Operating Officer Margo Deckard said. AST SpaceMobile's CEO said something similar to Wall Street this week (see 2404020007).

While D2D is a big opportunity with room for lots of approaches, many opportunities are in urban-adjacent dead zones where terrestrial signals get dropped, said Omnispace Vice President-Strategy George Giagtzoglou. Those urban-adjacent areas could be 45%-70% of the market, he added. Operating there using terrestrial spectrum is problematic, as mobile network operators (MNO) have voiced concerns about potential interference to their terrestrial networks, he said.

Replied Deckard, Lynk has done thousands of tests over large cities since 2020 and seen no terrestrial interference issues. The FCC "wouldn't have jumped in" to SCS without data showing use of terrestrial frequencies can be done without affecting terrestrial networks, she said.

While there will be multiple approaches, those involving standards represent a much larger potential market than proprietary approaches, Sateliot CEO Jaume Sanpera said. There will be a general move to working with standards, the same way IoT devices are moving in a similar standards-based direction.

The operators indicated that partnering with MNOs is the path to generating D2D revenue. Deckard said SCS service lets terrestrial operators monetize spectrum they couldn't otherwise, and provides them with network resiliency. She said MNO operators are worried about customer churn and losing subscribers to ubiquitous coverage. D2D service can represent a cost savings for MNOs, as edge networks are often not very economical, Giagtzoglou said. But D2D service pricing needs to be in line with the cost of connectivity in urban areas, Sanpera said.

The D2D market won't be based around either satellite or MNO exclusivity in many cases, the operators said. Deckard said it's likely an MNO might partner with multiple satellite operators, and that a satellite operator might collaborate with multiple MNOs in a country. For example, Lynk is partnering with a pair of New Zealand MNOs, she said. The FCC's SCS framework recognized all sorts of partnership structures, she said. Giagtzoglou said exclusivity might be necessary to access some markets. Some regulators might want only one operator involved when reaching rural and remote areas, he said.

Lynk plans on offering seamless texting globally in 2025, with voice and broadband service the goal beyond that, Deckard said. Iridium is working through 3GPP to get technical parameters of its waveform included in Release 19, and thus into subsequent chipsets, Vice President-Regulatory Kara Azocar said. The aim is 2026 for finishing that work, with MNO agreements to follow, she said. Iridium's focus will be on IoT service as well as messaging and SOS capabilities, she said. Giagtzoglou said Omnispace is working toward phased implementation of service in coming years to provide voice and data. Omnispace is discussing how it can address video conferencing in future systems, he added.

Giagtzoglou said as Omnispace looks at providing unlimited text and voice and a reasonable amount of data, getting there also opens the door to providing IoT services and use cases such as connected vehicles. Omnispace is pursuing a standards-based solution that would let 5G handsets using Third Generation Partnership Project Release 17 standards and higher will be able to get on the Omnispace network simply by MNOs changing their roaming table. He said it's looking at ways of also accommodating older handsets. "It's not that complex," but those older handsets won't have as much capability, he said.

Asked about competing with the SpaceX/T-Mobile SCS partnership, Sanpera said getting country-by-country approval for terrestrial spectrum could be more difficult than anticipated. Giagtzoglou said use of terrestrial spectrum also raises big challenges when it comes to border areas and could result in very big exclusion zones. At the same time, he said, SpaceX is setting the benchmark for pace in D2D and operators need to watch what it is doing "very carefully."