Direct-to-Device: Tomorrow's Questions
Imagine a world where direct-to-device satellite technology has proved technologically feasible, presenting users with multiple options for satellite connectivity on their smartphones. Some offers would be proprietary, tied to specific manufacturers or operators. Others would be based on open standards.
In this new landscape, users face a key decision: how to make the most of this technology. Meanwhile, regulators and policymakers are tasked with ensuring that the concept of connecting smartphones directly with satellites is not only beneficial to the public but also delivered in a transparent, affordable, and accessible way.
The User's Dilemma: More Choice, More Complexity
For users, the introduction of satellite connectivity means making decisions that go beyond simply choosing a mobile operator or picking the right data plan. For example, it is unclear whether users will form the habit of choosing between satellite and terrestrial networks as easily as they currently switch between Wi-Fi and mobile data.
Satellite connectivity may also come with higher costs, raising the question of how users will track and manage these premiums. The added choice could result in more freedom, but also a layer of complexity that they may not be accustomed to. Users might need to become more tech-savvy or vigilant about their usage patterns and billing to avoid unexpected charges.
A useful parallel can be drawn with international roaming, where travellers often face the dilemma of paying higher fees for mobile connectivity or relying exclusively on Wi-Fi. With satellite connectivity, users might find a middle ground by using satellite services to avoid the steep costs associated with roaming.
Another significant question is whether users will be aware of the switch between networks. The transition may be seamless, or there could be a discernible change in service quality. As users adapt to this new technology, they must adjust their expectations regarding connectivity and reliability.
There’s also the possibility that in emergencies, where satellite connectivity is the only option, devices may need to enter a special mode where non-urgent functions are reduced.
The Regulator's Challenge: Accountability and Security
While users grapple with these choices, regulators face an equally challenging landscape. Ensuring that users receive a satisfactory service and appropriate protections is a given, but there are more intricate issues to address.
One of the most fundamental questions is who will be recognised as the official provider of electronic communication services. If multiple parties are involved, such as the satellite provider, the mobile network operator (MNO), and potentially even the device manufacturer, who will be held accountable for upholding consumer rights, ensuring network security, or adhering to laws concerning the lawful interception of communications?
Moreover, in a globally connected satellite network, regulators need to consider the safety and security of the data flowing through these systems. By their very nature, satellite networks operate across borders, where traffic from one country can land in a gateway in another. How do we ensure that security and privacy standards are upheld when satellite traffic can bypass national infrastructure? These questions not only concern technology but also the governance and trust that underpin these systems.
The Operator's Perspective: New Competitors and Alliances
For operators, satellite connectivity opens new avenues of competition and collaboration. Imagine a smartphone with built-in satellite connectivity capabilities. What happens when an MNO offers its own satellite service as part of a subscription? This could potentially create a scenario where the smartphone manufacturer and MNO are in direct competition. Which option will be offered to the user and how will these choices be managed?
Things get even more complex when we consider the possibility of third-party satellite services. For example, if a user wants to subscribe to a premium satellite connectivity service from a different provider to their mobile subscription, we have a scenario where MNOs, device manufacturers, and satellite providers are all competing against each other for the same customer base. In emergencies, which service takes precedence? Who will the user rely on, and will they be able to set a "default" option for satellite connectivity in these situations?
As satellite services become more integrated into consumer devices, other questions arise. Could users see specialised bundles that tie satellite connectivity to premium features, such as unlimited messaging or access to social media apps, independent of traditional mobile network subscriptions? If such offers are made, it will need to be determined who regulates them and how competition laws will be applied to ensure users are protected from monopolistic practices.
A Shifting Landscape: Short- and Long-Term Implications
These questions suggest a future where the boundaries between mobile and satellite both on the infrastructure and over-the-top side blur. In the short term, the familiarity and widespread infrastructure of mobile networks will likely ensure they remain the dominant form of connectivity. However, this does not mean the situation will remain static. As satellite technology becomes more accessible and integrated into everyday devices, the dynamics of competition and regulation could begin to shift.
In the medium to long term, we may witness a slow but significant transformation in how connectivity is managed and offered. The roles of operators, device manufacturers, and satellite providers could overlap in unprecedented ways, pushing regulators to rethink traditional frameworks and creating new challenges for all stakeholders.
For now, the potential complexity presents more questions than answers. However, as this technology evolves, the rules of business and regulation will be forced to adapt to the new frontier.
About Access Partnership
Access Partnership makes innovation work for the world. Guiding businesses and governments through complex regulatory challenges, it designs frameworks that optimise deployment, drive growth, and attract investment. Access Partnership delivers in over 200 markets worldwide through specialist knowledge across all areas of the digital economy. From setting strategy and designing policy to ensuring compliance and measuring success, it expertly advises every step of the regulatory journey. Find out more here: accesspartnership.com.
techUK - Breakthroughs in Satellite Connectivity
techUK’s Breakthroughs in Satellite Connectivity campaign is our showcase of the opportunities and benefits created by the latest advances in satellite technology.
During this campaign, techUK will run a regular drumbeat of activity, including videos, reports, and insights, to demonstrate some of the most exciting satellite innovations.
Visit our Campaign Week hub to learn more, or find our latest activity below.
Upcoming digital connectivity events:
Cluster 1 and Cluster 4 Workshop: Landscape of NTN's and Spectrum Management
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Contact the team
Jaynesh Patel
Jaynesh Patel is Head of Telecoms and Spectrum Policy, leading the Communications Infrastructure and Services Programme at techUK and overseeing the UK Spectrum Policy Forum.
Josh Turpin
Josh joined techUK as a Programme Manager for Telecoms and Net Zero in August 2024.
Matthew Wild
Matthew joined techUK in August 2023 as a Programme Assistant.
Tales Gaspar
Tales has a background in law and economics, with previous experience in the regulation of new technologies and infrastructure.
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