Telcos Pick Satellite Sides in Mobile Broadband Space Race

Why It Matters

These alliances extend coverage to underserved areas and provide a backup layer for outages, but the technology’s indoor limitations temper expectations for core revenue disruption.

Key Takeaways

• Starlink Mobile has 10M MAUs, targeting 25M by year‑end
• AST SpaceMobile preparing D2D trials, no live service yet
• Starlink V2 aims 150 Mbps using 2 GHz S‑band
• Mobile operators view D2D as complementary, not replacement
• Satellite D2D struggles indoors, limiting core network impact

Pulse Analysis

The race to bring satellite‑based broadband directly to smartphones has accelerated after Mobile World Congress, as telcos scramble to fill coverage gaps left by traditional towers. Low‑Earth‑orbit constellations promise near‑global reach, and the direct‑to‑device (D2D) model eliminates the need for separate user terminals. By leveraging mobile satellite spectrum, operators can integrate satellite links into existing handset architectures, positioning the technology as a resilience layer rather than a wholesale substitute for 4G/5G networks.

SpaceX’s Starlink Mobile leads the pack with a 650‑satellite constellation already supporting 10 million monthly active users and a pipeline of 35 operator partners, from T‑Mobile in the United States to Virgin Media O2 in the United Kingdom. The upcoming V2 rollout, slated for mid‑2027, will use the 2 GHz S‑band acquired from EchoStar to deliver up to 150 Mbps downlink speeds. Meanwhile, AST SpaceMobile is gearing up for its first trials, targeting comparable broadband performance but without a live service to showcase yet. Both firms are eyeing mobile‑satellite spectrum to move beyond narrowband emergency texting and enable richer data, video, and voice services.

For telcos, the strategic calculus hinges on cost, coverage, and customer experience. Satellite D2D can bolster network resilience during outages and extend service to remote or disaster‑prone regions, but indoor penetration remains a technical hurdle that limits its appeal for core traffic. Operators must weigh partnership fees against potential new revenue streams and regulatory considerations. As the technology matures, the industry is likely to see hybrid models where satellite augments terrestrial capacity, especially in markets with sparse infrastructure, while the hype around a full‑scale satellite‑only mobile ecosystem continues to be tempered by practical constraints.