Recently, the Federal Communications Commission (FCC) of the United States announced a bold expansion of available spectrum for satellite communication, aiming to allocate over 20,000MHz of spectrum resources to support the development of low-Earth orbit (LEO) satellites and next-generation satellite broadband services. This move aims to address the spectrum scarcity faced by the commercial aerospace and satellite internet industries, particularly the needs of large-scale constellation systems like SpaceX's Starlink. The FCC's significant shift in spectrum policy is poised to inject new vigor into the satellite communication sector, further intensifying the competition in this field.

U.S. regulators plan to release a substantial amount of spectrum resources for satellite communication.

The FCC will consult on the utilization of the 12.7 GHz-13.25 GHz, 42.0 GHz-42.5 GHz, and 51.4 GHz-52.4 GHz bands, as well as the W-band (92.0 GHz-94.0 GHz, 94.1 GHz-100 GHz, 102.0 GHz-109.5 GHz, and 111.8 GHz-114.25 GHz) for satellite connectivity.

The FCC noted that these underutilized bands are ideal for satellite broadband use. For years, outdated regulations have hampered satellite operations in the 12.7 GHz band. The 42 GHz band remains largely untapped, while the 52 GHz band has no licensed commercial users. The long-undeveloped W-band offers gigabit capacity and exciting opportunities for satellite services.

Satellite operators have long been engaged in a tug-of-war with telecommunications operators over spectrum resources, with Elon Musk's Starlink being a prominent example. Recently, Starlink expressed dissatisfaction with Dish Network, a U.S. operator, for hoarding spectrum and urged the FCC to redistribute its satellite frequencies. In a letter to regulators, Starlink argued that Dish Network possesses significant spectrum resources but has failed to provide 5G or other services to U.S. consumers, occupying valuable mid-band spectrum resources without full utilization. Starlink hopes to introduce new satellite service providers to utilize these spectra for user services.

In late 2024, Starlink submitted an application to the FCC, requesting a reconsideration of the spectrum sharing regime between non-geostationary Earth orbit (NGSO) and geostationary Earth orbit (GSO) satellite systems, deeming the current rules inefficient, flawed, and outdated.

While the FCC has yet to make a final decision on releasing satellite communication frequencies, its proactive stance sends a clear signal to the industry, demonstrating strong support for satellite communication.

Prospects for Satellite Direct-to-Device (D2D) Communication Development

The release of policies related to satellite communication has drawn industry attention to satellite direct-to-device (D2D) communication. As new players in satellite communication continue to expand capacity, both new operators and established satellite players are constantly assessing their ability to provide D2D communication, which continues to attract the attention of policymakers. Furthermore, cooperation between satellite operators and terrestrial mobile communication operators to provide D2D communication has become a hot topic in recent years.

D2D offers several compelling potential use cases. According to GSMA data, 4% of the global population currently lives outside mobile signal coverage, while 37% lives within coverage but does not use mobile services. D2D may help address the 4% coverage gap but not the 37% usage gap.

For terrestrial mobile network operators, D2D can serve two major use case categories. First, customers in certain areas (typically high-income countries/regions) may be willing to pay more for connectivity outside densely populated areas, including outdoor enthusiasts or vehicles in remote locations. Second, mobile network operators can partner with satellite operators in D2D services to provide basic coverage where base station economics are not feasible, allowing them to not only fulfill regulatory commitments but also offer new services such as agricultural IoT.

A key factor driving the rapid commercialization of D2D is its ability to reuse existing achievements in the mobile communication industry chain. D2D can leverage mobile spectra and standard smartphones, for instance, operating on chipsets used for terrestrial mobile communication or chipsets that utilize 3GPP satellite bands.

While D2D was initially used in more complex mobile phones, enabling D2D on devices that most consumers can afford is more meaningful. Additionally, international and cross-border access coordination is crucial for the operational sustainability of D2D.

Another typical application of D2D is in the field of IoT, which offers a wide range of service scenarios and is expected to have a significantly larger user base than mobile phones. Currently, D2D communication applied to IoT primarily focuses on narrowband IoT, where the revenue per connection cannot match that of broadband communication for mobile phone users. However, the scale of IoT users can guarantee revenue, attracting substantial investment from satellite operators and telecommunications operators in this field.

In the realm of satellite D2D communication, vehicle direct-to-device communication has recently garnered significant attention. Smart connected vehicles have both broadband and narrowband needs for satellite communication, emphasizing seamless switching between satellite and terrestrial communication. Given the large volume of vehicle shipments, if D2D technology can become a standard feature in vehicles, it will bring scale benefits to related manufacturers. Recently, there has been an increasing number of cases of satellite direct-to-device communication for vehicles, providing a new blue ocean for satellite communication application scenarios.

One example is LG Electronics' demonstration at the recent 5G Automotive Association (5GAA) conference in Paris, France. The demonstration, conducted throughout Paris, showcased vehicles equipped with IoT-NTN-based telematics control units. LG stated that this demonstration was the first instance of uninterrupted, conversational-level voice communication during seamless switching between terrestrial (TN) and non-terrestrial (NTN) network environments. LG's solution integrates AI-driven voice compression technology into its IoT-NTN system, significantly reducing the size of voice messages, overcoming previous data limitations that restricted satellite communication to brief emergency text messages, and extending its functionality to enable voice transmission. The result is a more than tenfold increase in voice message transmission speed, enabling true two-way conversation. In emergency situations, vehicle passengers can press an emergency call button to send a voice-based distress signal and describe the situation without needing to type a text message or perform other operations. Another case is the successful completion of a critical vehicle satellite connectivity test last week by Intelsat, an international communications satellite organization, and Cubic3, a platform vendor, demonstrating how terrestrial and non-terrestrial networks can seamlessly connect to provide always-on connectivity services regardless of location.

As I have highlighted in previous articles, from a technical perspective, with the continuous improvement of 3GPP standards and leveraging the global ecosystem influence of the 3GPP camp, 3GPP-based satellite communication technology is poised to become the mainstream route in the future. Currently, most mobile communication operators and several major satellite operators have begun cooperating on 3GPP technology.

Against the backdrop of the U.S.'s release of satellite communication spectrum policies, investment in satellite communication is expected to further escalate, stimulating investment in this field in other countries and regions globally. In the future, with the growing demand for broadband and narrowband satellite communication and a significant reduction in related costs, we may soon witness the formation of a scaled market for global satellite communication services.