By next year, mobile smartphone users in India could access a new technology that would allow them to stay connected even in areas with weak or no terrestrial network coverage — without changing their existing devices.

This innovation is enabled by direct-to-device or direct-to-cell (D2D) services, where the smartphone gets connected through satellites, allowing users to make calls, send texts, or use data in remote areas.

The first to announce its plans to offer this service in India is Vodafone Idea Ltd (VIL). Despite ongoing financial challenges, last fortnight, VIL announced a partnership with Texas-headquartered AST SpaceMobile to provide D2D connectivity in underserved and remote parts of India where terrestrial networks are patchy or nonexistent.

AST SpaceMobile, which has strategic investments from global giants like AT&T, Verizon, Rakuten, Vodafone Plc (a stakeholder in VIL), Google, and others, plans to launch over 243 low-Earth orbit (LEO) satellites. It currently has six in orbit. The company has already tied up with over 50 mobile network operators across the US, Africa, Europe, Australia — and now India — that collectively cover a customer base of around 3 billion people who often move in and out of terrestrial network zones.

D2D aims to complement terrestrial services by offering seamless connectivity. In its investor presentation, AST SpaceMobile projected that the global market for D2D services could exceed $100 billion in the next decade.

However, the competition in this space is heating up. Heavyweights in the satellite broadband market have entered the fray — including Elon Musk’s Starlink, which recently secured a Global Mobile Personal Communication by Satellite licence from the Indian government. Others include Globalstar-Apple Inc, Amazon’s Kuiper (which has applied for an Indian licence), Lynk Global, and Iridium. While Iridium currently supports only Iridium-specific phones, it is exploring D2D services for regular smartphones.

Starlink, with over 7,800 LEO satellites in orbit, already has more than 600 satellites equipped with transponders designed for D2D functionality. That number is expected to grow as Starlink expands its constellation. The company is currently testing the waters through a tie-up with US telecom giant T-Mobile with a beta version of D2D; a commercial launch is anticipated soon.
Sources familiar with the developments say Starlink is also in discussions with its Indian distribution and marketing partners — Reliance Jio and Bharti Airtel — to take their collaboration beyond just selling Starlink satellite broadband packages. These services are expected to be launched in India soon.

Analysts say that Jio and Airtel could leverage their spectrum to partner with Starlink and provide D2D services to their extensive subscriber base, sharing the revenues in the process.

Globalstar, which provides satellite connectivity for Apple iPhones (iPhone 14 and newer), mostly for emergency SOS and text services, may also bring this feature to India. Analysts believe this would cater well to the country’s estimated 50 million iPhone users.
Going direct
There are two key advantages of D2D over traditional satellite phone services. First, users can access the service through their existing 4G and 5G smartphones, avoiding the need to purchase expensive satellite phones. Second, telecom companies can deliver the service using their existing spectrum bands — such as 2100 MHz, commonly used for terrestrial networks — eliminating the need for new spectrum purchases.

But is there a sizable market for D2D services in India?
While mobile coverage currently reaches 99 per cent of the population, only about 50-60 per cent of India’s geographical area is covered. This leaves vast regions — especially in mountains, forests, and deserts — without network access. Travellers, logistics operators, and residents in these areas could benefit from D2D connectivity. Additionally, even in metro cities, many “dead zones” suffer from call drops and poor signal strength, representing another significant use case for D2D.

A senior executive at a telecom company planning to launch D2D services said: “We estimate that around 5 per cent of smartphone users will subscribe to the service once it stabilises, and it could contribute 10–15 per cent to the overall revenues of telcos.” He added that it would be positioned as a premium offering — much like international roaming — with a higher
price tag.

The D2D landscape could shift dramatically if the Indian government allocates the L-band (1–2 GHz) and S-band (2–4 GHz) spectrum to satellite operators. The Telecom Regulatory Authority of India (Trai) has recommended administrative allocation for these bands. With their longer wavelengths, these bands can penetrate obstacles like clouds, rain, and dense forests, offering better signal quality. However, smartphones would need to be redesigned to support these frequencies.

“While this can be expensive initially, as one has to switch to a new phone, a portion of the L-band is also expected to be allocated for International Mobile Telecommunications (IMT),” said an industry expert. “This could drive demand and scale for device manufacturers, bringing prices down quickly.”

The business model
The real difference lies in the business model.

In the traditional D2D service – powered by existing spectrum – telcos have access to the customers, and satellite operators have to tie up with them to reach them. It is not viable for the satellite operators to buy terrestrial spectrum in auction and extend the service directly to customers.

However, once satellite operators receive access to L- and S-band spectrum through administrative pricing, they could bypass telecom partners entirely. They could then provide D2D services directly to consumers using e-SIM technology embedded in smartphones, without involving traditional telcos at all.

This potential shift is causing concern among Indian telecom operators.

Industry players warn that such a move would create an “uneven playing field”. Telcos, they argue, acquire spectrum through expensive auctions, while satellite companies would gain spectrum at a fraction of the cost. And this time, the satellite players wouldn’t need telcos at all — they’d go straight to the consumer.

That said, telcos differ on the regulatory changes that might be needed to offer D2D services. Some say this would be like another 3GPP (Third Generation Partnership Project) service, so it would not require new permission from the government. Others argue that the current policy does not allow terrestrial spectrum to be used for satellite services. Hence, both Trai and the Department of Telecommunications would have to issue fresh guidelines to allow such hybrid terrestrial and satellite services, and that will take a while.

All in all, the impending shift sets the stage for a new kind of rivalry between telecom operators and satellite service providers, with both sides vying for dominance in a market that promises to redefine mobile connectivity. Business Standard