The Next Wave in Connectivity: Commercial Satellite D2D Takes Shape

2025 marks a defining moment for satellite direct-to-device (D2D). D2D is evolving from a niche emergency service to a scalable communications model, linking smartphones, IoT devices, and businesses through satellites. While most of the conversation around D2D has so far centered on consumer applications, there is an emerging opportunity in the commercial sector that should also be acknowledged.

In this area, the competitive landscape is now taking shape, the enterprise value proposition is solidifying, and commercial business models are becoming clearer. Simultaneously, spectrum, regulations, and technology are rapidly advancing. Together, these forces are transforming commercial D2D from concept into an executable business opportunity. The following aims to summarize the current status and what is left to achieve to fulfil the potential for satellite D2D in commercial applications.

A Maturing Competitive Environment

SpaceX’s $17 billion acquisition of EchoStar’s spectrum made Starlink the most vertically integrated D2D operator, controlling satellites, spectrum, and distribution. Additionally, the planned merger between Lynk Global and Omnispace (supported by SES as a major strategic investor), aims to combine Omnispace’s globally coordinated S-band spectrum with Lynk’s satellite platform and existing relationships with mobile network operators (MNOs). Once closed, the entity will be positioned to become a credible global challenger in D2D and IoT connectivity.

While early consumer services like Apple’s SOS via Satellite and T-Mobile and Starlink texting validated the technology, enterprise applications are the next major step. Industries such as logistics, energy, mining, transport, and maritime depend on constant visibility of assets and teams. D2D transforms coverage everywhere into a business continuity feature. It provides resilience without new hardware or operational complexity.

Mobile operators can offer it as a premium add-on to enterprise mobility contracts, IoT providers can embed it as fallback connectivity, and satellite operators can monetize capacity through wholesale deals.

Emerging Business Models

As D2D nears commercial deployment, a few clear models are taking shape.

Hybrid Operator Bundles: mobile carriers partner with satellite operators to expand coverage and allow users to seamlessly roam over both terrestrial and satellite networks under a single plan. Vodafone and T-Mobile are notable examples in this category, having partnered with AST SpaceMobile and Starlink, respectively.

Wholesale IoT Access: This model lets IoT service providers and mobile virtual network operators (MVNOs) easily add satellite coverage to their existing networks. With one SIM card, they can keep vehicles, cargo, and remote equipment connected anywhere in the world, without juggling multiple network providers.

Vertical Solutions: These models are gaining traction in maritime, energy, and public safety. For smaller operators and remote businesses, D2D delivers simple and reliable connectivity at a fraction of the cost of conventional satellite setups.

These business models are transforming D2D from a promising technology into a commercial and scalable opportunity for mobile and satellite companies.

Early Adoption

Early adoption in D2D is strongest in industries where coverage assurance equals operational value. Utilities, mining, and emergency services are using D2D to maintain “always-on” communications in the field without satellite phones. Logistics operators and transportation fleets rely on it for seamless asset tracking across borders and remote regions.

Another natural early adopter is the maritime sector, with D2D enabling low-cost messaging and telemetry for small commercial and leisure vessels. Similarly, businesses that are reliant on mobile connectivity for distributed operations are adopting D2D as a resilience layer, thereby ensuring continuity during network outages.

Across these sectors, D2D’s value lies not in bandwidth, but in the guarantee that connectivity is always available.

Spectrum Strategy

Spectrum strategy and regulations will define how D2D services are deployed and monetized. Terrestrial spectrum operators such as SpaceX and AST SpaceMobile use mobile network licensed frequencies to connect unmodified smartphones, while mobile satellite service (MSS) players like Globalstar, Lynk, and Omnispace rely on L- and S-band allocations tailored for IoT and messaging.

Recent moves like those from SpaceX’s $17 billion spectrum acquisition to the Lynk/Omnispace merger highlight how spectrum access strengthens reach and scalability.

Simultaneously, regulations are catching up. The FCC’s Supplemental Coverage from Space (SCS) framework, finalized in 2024, legitimized hybrid satellite mobile operations, while 3GPP’s Non-Terrestrial Network (NTN) standards align terrestrial and satellite protocols to ensure interoperability and lower integration costs.

With spectrum consolidation and regulations advancing together, D2D is evolving from concept stage to infrastructure ready technology that is set to deliver seamless, standards based connectivity globally.

The next phase of connectivity is not about speed, but permanent reach and transparent interoperability

AST, Lynk, Starlink, and Globalstar have all demonstrated direct links to standard smartphones under real world conditions. The next challenge is network level integration, handover, and billing between mobile and satellite centers, so users can experience a single, seamless connection.

3GPP Release 17 introduced the NTN standard, while Release 18 (now in progress) will enhance mobility and power efficiency. As NTN-ready chipsets from Qualcomm, MediaTek, and Sony Altair enter mass production, D2D will become a standard feature in smartphones, wearables and IoT devices.

Defining the Next Decade

Satellite D2D is moving from experiment to commercial execution. The companies that align pricing, partnerships, and business models will define the next phase of this market.

As D2D becomes part of real-world infrastructure, its success will be judged not by speed or data volume, but by how effectively it delivers reliable connectivity where needed.

This article marks the launch of Valour Consultancy’s upcoming report, Satellite D2D: Its Role in Commercial Applications, providing an in-depth look at how emerging business models, pricing strategies, and technology developments are shaping the commercialization of direct-to-device connectivity.

Shagun Sachdeva Ferran is a seasoned space industry consultant working with Valour Consultancy. She has held leadership roles at Analysys Mason and Spiral Blue, and founded Kosmic Apple Pty Ltd.