The Satellite to Phone Market
Los Angeles, Calif., February 1, 2024 - Satellite connectivity direct to phone and devices is not new for companies like Iridium, Globalstar, Inmarsat that have been active in this market for the last 25-plus years but the new wave is the Low Earth Orbit (LEO) satellite constellations that are now targeting the cellular services and IOT with existing traditional companies already providing some services and new startup coming to this market.
The Mobile Satellite Services (MSS) industry is undergoing a transformative shift due to the rapid rise of direct-to-device satellite solutions, primarily from direct-to-phone services, driven by the integration of terrestrial and non-terrestrial network (NTN) connectivity and technology developments. Direct-to-phone satellite connectivity expected to revolutionize the satellite communications industry, emerging as a billion-dollar market by 2027. The latest edition of Euroconsult's 'Prospects for Direct to Handheld and IoT Markets' unveils the developing potential of the satellite direct-to-device market, with projections indicating that direct-to-phone services could connect nearly 130 million average monthly users by 2032.
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Euroconsult report move into the dynamic landscape of three crucial satellite communication market segments: traditional handheld phones, direct-to-phone connectivity, and Internet of Things (IoT). The report provides a new level of detailed analysis covering market developments, major applications, equipment solutions, and the growth drivers and challenges inherent to each segment. Satellite cellular IoT is a niche market enabling hybrid solutions via in-market unmodified IoT devices with a high market potential due to the ease of implementation. Non-geostationary orbit (NGSO) satellite constellations are playing an increasingly pivotal role in creating new opportunities to seamlessly integrate satellite connectivity into existing devices.
Addressing the potential ‘unconnected’ population, the direct-to-phone segment eyes a total satellite connectivity market of over 2 billion subscribers in 2022. This segment targets individuals without terrestrial network coverage (1.9 billion) and mobile users encountering connectivity issues due to poor terrestrial network coverage or travel to areas without coverage (130 million).
Expanding the market’s horizons further, the IoT segment is set to substantially increase its potential as a revenue-generating force with satellite cellular IoT, anticipated to commence revenue generation in 2025. Key applications expected to drive this growth include ‘connected cars’ in transport/logistics, ‘smart cities’ in natural resources (oil rigs, mining sites, utilities) and personal tracking assets like smartwatches. Projections forecast a substantial addressable market of 10.6 billion cellular IoT devices by 2032. Sumaiya Najarali, Euroconsult senior consultant, emphasized: “Continuous technological improvements have bolstered satellite capacity and enhanced device capabilities, hastening the adoption of direct-to-device satellite services. Despite the strong prospects for the direct-to-handheld and IoT markets, success will be largely influenced by external factors, particularly securing spectrum rights and overcoming regulatory barriers, and internal forces, including funding initiatives to support planned satellite infrastructure and commitments from MNOs. Additionally, affordability of services and customer willingness to pay will be pivotal in this cost-sensitive market.”
The existing satellite Phones in the Market are Iridium and Globalstar (Low Orbit Satellite Constellation) and Inmarsat and Thuraya (GEO Satellites). We have a brief description for each company what is available in the global level for personal use, enterprise, government and defense and what they are planning to the new trends to connect with cell phone services devices.
There is currently no shortage of satellite businesses looking to tap into satellite phone demand. There’s Iridium, for example, which already has a full-fledged service in operation although mostly appealing to military and disaster relief clients. Apple has also contracted with Globalstar to supply emergency Text-based cellular connectivity to iPhones, although has admitted that a full satellite-to-phone service is one of its aims. Other companies such as AST SpaceMobile is also pursuing a full-fledged cellular service, while UK-based Bullitt Group says it is working with Taiwanese chip company MediaTek to build a handset that could link to satellites to send and receive text messages.
Iridium Extreme® is the new satellite phone of Iridium. (photo courtesy of Iridium)
Iridium
The Iridium satellite constellation provides L band voice and data information coverage to satellite phones, satellite messenger communication devices and integrated transceivers. Iridium Communications owns and operates the constellation, additionally selling equipment and access to its services. The constellation consists of 66 active satellites in orbit, required for global coverage, and additional spare satellites to serve in case of failure.
Iridium provides mobile voice and data satellite communications network that spans the entire globe. Iridium enables connections between people, organizations and assets to and from anywhere, in real time. In 2019, the company completed a generational upgrade of its satellite network and launched its specialty broadband service, Iridium Certus®. Iridium Communications Inc. is headquartered in McLean, Va., U.S.A.
Iridium early in 2023 announced that it entered into agreements with Qualcomm to enable satellite messaging and emergency services in smartphones powered by snapdragon® Mobile Platforms using Iridium's satellite network. The companies successfully developed and demonstrated the technology; however, notwithstanding this technical success, smartphone manufacturers have not included the technology in their devices. Due to this, on November 3, 2023, Qualcomm notified Iridium that it has elected to terminate the agreements, effective December 3, 2023. With the termination of these agreements, Iridium informed to the market they will be free to directly re-engage with smartphone OEMs, other chipmakers, and smartphone operating system developers that the Company had been collaborating with previously. Iridium will also be pursuing new relationships with smart device OEMs, chipmakers, and developers for its existing and future service plans
GSP-1700 handheld portable satellite phone. (photo courtesy of Globalstar)
Globalstar
Globalstar, Inc. is an American satellite communications company that operates a low Earth orbit (LEO) satellite constellation for satellite phone and low-speed data communications. The Globalstar second-generation constellation consists of 25 low Earth orbiting (LEO) satellites.
Globalstar provides reliable and portable satellite communication solutions that keep you connected in areas without cellular coverage. Check in via talk, text or email and relay important information quickly, or trigger Search & Rescue services in the event of an emergency from your vehicle, vessel or building.
During 2022, Globalstar struck a deal with Apple to power the iPhone maker’s emergency-texting system, a partnership that gave Globalstar a deep-pocketed customer and a steady stream of revenue. Apple’s emergency-texting system, called Emergency SOS, enables all iPhone 14 and 15 models to send messages to emergency services via a satellite connection when outside of a cellular range.
Apple said it would invest some $450 million in infrastructure for its emergency-satellite service, with most of that going to Globalstar to upgrade aging satellites. The deal also kicked off a race for others to develop and commercialize comparable technology. Globalstar and Apple aren’t alone in pursuing the technology. So-called direct-to-device satellite communications have attracted new entrants in recent years. Elon Musk’s SpaceX is working with cell carrier T-Mobile to test the technology while AT&T is working with AST SpaceMobile
Inmarsat- www.inmarsat.com now is part of Viasat since the acquisition last May 2023. Inmarsat headquarter is based in London and is a satellite telecommunications company, offering global mobile services. It provides telephone and data services to users worldwide, via portable or mobile terminals which communicate with ground stations through fifteen geostationary telecommunications satellites.[3]Inmarsat has a Satellite Network and provide Global Communications via a GEO Satellite Network and provide voice services via Isaphone 2 showed in the picture below:
ISATPHONE 2 portable satellite phone. (photo courtesy of Inmarsat)
ISATPHONE 2
Inmarsat with the merger with Viasat didn’t announce any intention to provide any solution integrate with direct to cell phone services and the main reason for this purpose they need to implement a Low Orbit Satellite Constellation and Viasat didn’t have any plan and at this time abort the Inmarsat Plan for the Orchestra LEO satellites. Viasat announced that is launching direct-to-device satellite service with Skylo and Ligado’s SkyTerra satellite network.
Skylo has a tech stack that connects standard IoT devices directly to satellite, compatible with 3GPP release 17 standards. Skylo has been operating its service over Inmarsat’s L-band satellites since 2021. Now post-Inmarsat acquisition, these satellites are part of Viasat’s network. This official rollout means that Skylo has access to Viasat’s global L-band capabilities, including Viasat’s local and global partners, like Ligado. Initial deployments are planned for early 2024 in North America, using the Ligado SkyTerra satellite network, followed by a global rollout.
Thuraya
Thuraya, is the mobile satellite services subsidiary of the UAE-based Al Yah Satellite Communications Co. Uses two geo-synchronous satellites over Singapore and East Africa, offering global coverage of up to 79% (including Europe, Asia, Africa, and Australia). US, New Zealand, and South America are not covered. Voice, SMS, and data supported, dependents on the handset. Satellite broadband terminals available offering speeds of up to 444kBps for downloads, at an additional price.
THURAYA XT-PRO DUAL- satellite phone and GSM Connect to Satellite and GSM networks to enjoy connectivity in any location and include Two SIM Card Slots Use any combination of satellite and GSM SIM cards with ‘Always-on’ capability. (photo courtesy of Thuraya)
Thuraya XT-Pro Dual- Satellite Phone and GSM Connect to Satellite and GSM networks to enjoy connectivity in any location and include Two SIM Card Slots Use any combination of satellite and GSM SIM cards with ‘Always-on’ capability.
Thuraya released a new generation version of its XT-PRO DUAL satellite phone. It is a dual-mode, dual-SIM satellite-cellular phone that allows users to move in and out of terrestrial coverage and seamlessly connect regardless of their location. The Thuraya XT-PRO DUAL will be available from mid-December 2023. Thuraya announced the new model on Dec. 13.
Thuraya XT-PRO DUAL has been developed to meet the needs of a growing market and was upgraded to support terrestrial 4G LTE networks for flexible connectivity. Catering for users in harsh environments, the ingress protection was increased to the IP65/IK05 standard, which makes the phone dust- and water-resistant as well as shockproof. Thuraya is targeting the XT-PRO DUAL satellite phone to sectors such as first responders, but also for officials managing disaster relief efforts as well as border controls and coast guards. Other sectors targeted include oil and gas, mining, and infrastructure development.,” Ali Al Hashemi, group CEO of Yahsat, said in a statement. “Coupling our advanced technology with a robust satellite network spanning more than 150 countries, this handset offers us a unique competitive advantage that enables our customers to freely move in and out of terrestrial coverage areas where they can use GSM when available, and switch to satellite whenever they are out of GSM coverage.
Beyond the existing Satellite Phone companies we have now the Low Orbit Satellite Constellation that is moving to this market starting with the announcement of Starlink ( Space X LEO Satellite Provider) and two other constellation AST Spacemobile and LinkGlobal active in the market at this time.
Starlink
Starlink is a satellite internet constellation operated by US aerospace company SpaceX, providing coverage to over 65 countries. It also aims for global mobile phone service after 2023. As of November 2023, it consists of over 5,500 small satellites in low Earth orbit (LEO) that communicate with designated ground transceivers.
SpaceX is targeting end of December 2023 for a Falcon 9 launch of 21 Starlink satellites to low-Earth orbit. This launch will include the first six Starlink satellites with Direct to Cell capabilities that will enable mobile network operators around the world to provide seamless global access to texting, calling, and browsing wherever you may be on land, lakes, or coastal waters.
"..Space-based D2D players have struck multiple partnerships with terrestrial telcos keen to fill their network’s coverage gaps. D2D advocates are quick to highlight how these partnerships would help them tap into the trillion-dollar-plus telecoms market, which easily eclipses the $464 billion that the global space industry made in 2022, according to analysts at Euroconsult..."
Sara Spangelo, SpaceX’s co-lead on the sat-phone scheme, mentioned: “SpaceX is developing a breakthrough new direct to cell satellite network to bring ubiquitous cellular connectivity worldwide via the Starlink constellation. She mentioned that Starlink are partnering with telecommunication companies around the world to bring this service directly from satellites to existing cell phones, with the goal of providing coverage anywhere a phone can see the sky.” The SpaceX project could see it further its work with T-Mobile which it recently said would lead to cover most of the US with satellite-based cellular connectivity especially in remote areas.
During the Launch of these services by CEO of Space X Elon Mush and CEO of Tmobile shared their vision for expanding coverage above and beyond globally, issuing an open invitation to the world’s carriers to collaborate for truly global connectivity. T-Mobile committed to offer reciprocal roaming to those providers working with them to enable this vision. “The important thing about this is that it means there are no dead zones anywhere in the world for your cell phone,” said Musk. “We’re incredibly excited to do this with T-Mobile.” They announced that SpaceX will use a portion of T-Mobile’s existing 5G spectrum, the ‘mid-band Personal Communications Service’ to allow Gen-2 Starlink satellites to connect directly to cell phones.
This satellite connection will be limited at only 2-4 megabits per cell area – but it will be enough to allow T-Mobile customers on a standard plan to send text messages or make phone calls even in some of the most remote areas of the globe. Musk said this speed is enough to support one or two thousand phone calls per cell area.
AST SpaceMobile
The company is building the SpaceMobile satellite constellation, a space-based cellular broadband network that will allow existing, unmodified smartphones to connect to satellites in areas with coverage gaps Its BlueWalker 3 prototype satellite is the largest commercial communications array in low Earth orbit after launch in 2022.AST SpaceMobile’s BlueWalker 3 test satellite is 693 square feet in size, designed to generate power from space and deliver cellular broadband directly to your phone.
AST SpaceMobile’s BlueWalker 3 test satellite is 693 square feet in size, designed to generate power from space and deliver cellular broadband directly to your phone. (photo courtesy of AST SpaceMobile)
AST SpaceMobile,is the only DTD (Direct to Device) startup to be listed publicly following its 2021 merger with a special purpose acquisition company (SPAC), announced in June 2023 its engineers had achieved 4G LTE download speeds during tests that month with BlueWalker 3, its prototype in LEO. The venture, which made its first voice call in April with a standard smartphone using BlueWalker 3, plans to start deploying commercial satellites in 2024.
AST SpaceMobile announced in April that the startup had made its first voice call with a standard smartphone using its BlueWalker 3 test satellite in low Earth orbit.
A space-based overlay could ensure phone connectivity immediately after a natural disaster takes out terrestrial networks, he said. Government agencies could use satellites to push mass texts to areas needing emergency information, such as weather alerts, the location of shelters, and whether borders are open or about to close.
Scott Wisniewski, chief strategy officer for AST SpaceMobile said: “We believe emergency crews could potentially benefit from this service in many situations, any time they are out of coverage, in remote areas, on the water, or in the case of natural disasters.”
AST SpaceMobile has partnered in the United States with AT&T, which operates the country’s FirstNet communications network for emergency responders. AT&T has access to deployable cell towers for when natural disasters knock out terrestrial wireless systems; however, these take time to deploy. In extremely rural areas of the United States where FirstNet cannot reach, first responders currently use low-bandwidth wireless services, including VHF radios and bulky, specialized satellite-enabled handsets.
AST Space mobile informed last November 2023 that their first five commercial satellites expected to be launched in Q1 2024 and Manufacturing at full speed in Midland, Texas facilities.
Lynk Global
Lynk Global is a company developing a satellite-to-mobile-phone satellite constellation that aims to provide a "cell tower in space" capability for global mobile phone service coverage, including in underserved rural areas without cellular coverage. Lynk has requested a license from the US Federal Communications Commission to launch up to ten test satellites as early as 2022, with the goal to begin continuous global coverage in 2025 using a constellation of several thousand satellites. Lynk Global launched initial services in June 2023 from a constellation aiming to use spectrum from terrestrial cellular partners to reach the billions of smartphones already in consumer pockets.
Lynk announces the successful launch and deployment of two more satellites (pictured) in the company’s commercial cell-towers-in-space constellation. These satellites are covered by the world’s first and only commercial satellite-direct-to-standard-phone license that Lynk received from the FCC in September 2022. (Photo: Business Wire)
With just three of a proposed network of 5,000 Lynk satellites in low Earth orbit (LEO), the startup is currently enabling texts to be sent and received from three satellite overpasses per day in part of the Pacific Island nation of Palau, in partnership with a local telco.
Lynk announces the successful launch and deployment of two more satellites (pictured) in the company’s commercial cell-towers-in-space constellation. These satellites are covered by the world’s first and only commercial satellite-direct-to-standard-phone license that Lynk received from the FCC in September 2022.
The service has started on three islands where Palau National Communications Corp. (PNCC) customers previously relied on VHF radios popular with boaters.
Lynk CEO Charles Miller said the venture has “seen, in the wild, as many as 4 texts per overpass from a single user.” As Lynk grows its constellation, it expects to improve latency and expand satellite-enabled coverage over two more islands before the end of 2023 and then across Palau’s more than 300 islands and surrounding waters by March. While the startup is starting with text services, it expects to add voice and other capabilities as it densifies its planned global network.
Another event Lynk Global & Rogers Communications completed the first satellite-to-mobile phone call in Canada, using Samsung Galaxy S22 smartphones for the feat alongside testing SMS, data and emergency alert services. The phone call was made using Lynk Global’s low-earth orbit (LEO) satellites and the operator’s national wireless spectrum.
In their announcement, Rogers Communications and Lynk Global noted wireless spectrum ensures the service works on existing smartphones. The operator plans to launch the technology in 2024, beginning with SMS, mass notifications and machine-to-machine AI applications.
Conclusion
Many more DTD ventures are also on their way, including Switzerland-based Salt, and One New Zealand.
Space-based D2D players have struck multiple partnerships with terrestrial telcos keen to fill their network’s coverage gaps. D2D advocates are quick to highlight how these partnerships would help them tap into the trillion-dollar-plus telecoms market, which easily eclipses the $464 billion that the global space industry made in 2022, according to analysts at Euroconsult.
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Bernardo Schneiderman is the Principal of Telematics Business Consultants. He can be reached at:
info@tbc-telematics.com
