Telecommunications market
Satellite-based communications services are increasingly gaining traction in the telecommunications market. In particular, direct-to-device (D2D) technology allows D2D-enabled smartphones to link directly with satellites and creates new opportunities to expand mobile network coverage.
The United States’ satellite services market is increasingly gaining momentum. On September 14, 2026, T‑Mobile US, AT&T, and Verizon established a joint venture to address coverage gaps and expand satellite-based mobile services. On October 8, 2026, SpaceX agreed to acquire 800 MHz spectrum from Grain Management. This comes on the heels of SpaceX’s acquisition of AWS spectrum from EchoStar, which the Federal Communications Commission (FCC) approved in May 2026. The spectrum portfolio gives the company the means to add terrestrial network components to its satellite-based Starlink Mobile product going forward.
Operators in Europe are likewise moving to integrate satellite services into existing mobile networks via a number of different approaches. For instance, Deutsche Telekom is working with Starlink on the planned launch of D2D services in several European markets by early 2028 at the latest. Other European operators are pursuing similar avenues. In addition, the European Commission has proposed a new EU-level selection procedure for assigning mobile satellite services spectrum in the 2 GHz band beyond 2027. In October 2026, Deutsche Telekom, Orange, Telefónica, and Vodafone announced their intention to explore a joint bid for this spectrum with the goal of expanding satellite-based mobile connectivity.
The increasing convergence of satellite and terrestrial networks leverages new opportunities for cooperation and could reshape the competitive landscape in the long term. However, due to their limited capacity and technical capabilities, at present, satellite-based offerings primarily serve to enhance terrestrial mobile networks. Powerful terrestrial infrastructures thus remain a foundational backbone of mobile connectivity.