First commercial direct-to-cell connections to launch in 2025
However, the service may have initial low demand due to existing coverage of terrestrial base stations.
The first commercial direct-to-cell connections are expected to launch in 2025, bringing reliable coverage to remote and underserved areas.
In its Top 10 Telecoms & Connectivity Trends 2025 report, Juniper Research said satellite network operators (SNOs) such as AST SpaceMobile, Lynk Global, Omnispace, and Sateliot have all been investing heavily in satellite launches and operator partnerships to enable the first commercial service in 2025.
The innovation will enable devices with a SIM card to connect directly to signal from a satellite, including capable radios in devices and satellites with the correct antennas.
In turn, it will provide cellular coverage in locations that were not financially viable for operators, such as rural locations or maritime.
The report cited factors such as new technologies and innovative business models that are reducing the costs of launching satellites to deploy commercial direct-to-cell connections.
Additionally, the expanding private space economy has enhanced available options for SNOs to launch their satellites.
However, Juniper Research expects the service to have an initial low demand for services in 2025, owing to the existing coverage of terrestrial base stations.
It also noted niche addressable user base for direct-to-cell services, suggesting that operators should focus primarily on promoting these services to enterprise clients, who provide a higher average revenue per client than consumer subscribers.
Moreover, network operators are advised to prioritize areas with high population densities to maximize the value of their networks.