SpaceX Deploys Direct-To-Cell Starlinks
There’s officially a new player in the direct-to-cell market.
SpaceX launched its first batch of Starlink satellites with the embedded capability to connect directly with phones on the ground. T-Mobile, the company’s partner in connectivity, is signed on to enable the service within the US as early as this year.
Get connected: Direct-to-cell technology (These modems are similar to cell phone towers but operating in space. Once these satellites are in orbit, they instantly connect over a laser backhaul to Starlink's low-earth-orbit (LEO) constellation to provide global connectivity) (Lynk technology connects to mobile phones on the ground in a way similar to roaming networks, where the satellite mobile service will connect to another available cellular network when outside the range of its home network.) has gained steam in the past few years as satellite operators have forged partnerships with telecom companies and phone manufacturers to bring the ability to connect directly to satellites in times of need to a broad consumer market.
Satellites equipped with this technology mimic cell towers. This can enable users on the ground to send texts and make calls even when they’re in remote locations not covered by terrestrial towers.
Other players in the game:
Lynk Global, which demonstrated its capabilities with unmodified smartphones in February 2022, has announced a SPAC merger with Slam Corp. to raise funds for its planned 5,000-bird constellation AST SpaceMobile ($ASTS), which notched a 5G demo in September 2023 using its BlueWalker 3 satellite, is seeking additional financing for its constellation Iridium ($IRDM) has dipped its toe into the tech as well. The company announced a partnership with Qualcomm earlier this year to explore the service, but prohibitive pricing and quality issues with compatible hardware led the companies to call it off. The big picture: The market for direct-to-cell services is new, but the companies vying to ramp up their services in the near future say they are confident that customers will get on board quickly.
A Euroconsult report published last month backs up those expectations. The analysts found that the direct-to-cell satellite market could reach $1B as early as 2027 and could connect as many as 130M monthly users by 2032.
What’s next? The new fleet of direct-to-cell-enabled Starlinks is expected to begin offering texting capabilities from dead zones this year, with calling and IoT connectivity to follow in 2025 and beyond.
SpaceX has not yet secured the regulatory approval it needs to offer its direct-to-cell services commercially.
Lynk Completes Satellite-to-Phone Connectivity Demonstration
Lynk announced yesterday that it has completed a demonstration of its direct-to-phone telecom service from its fifth satellite. The company said the satellite connected to thousands of devices on three continents.
The Virginia company is hoping to roll out its direct-to-phone two-way communications service later this year. In the meantime, the demo results show that the satellites can connect to phones and provide messaging capabilities without any add-on receivers—and without the devices “knowing” they were even part of the test, Lynk CEO Charles Miller told SpaceNews.
The vision: We spoke to Miller back in October about Lynk’s technology. To paraphrase, he said Lynk’s satellites mimic cell towers. They’re compatible with the 3GPP protocol, the global standard for mobile phones. “In this way, we are backward-compatible with every existing mobile phone on the planet that’s 2G, 3G, 4G, or LTE,” Miller said. “And in the future, 5G as well.”
Lynk’s targeting initial service for mobile network operators (MNOs) and mobile users in “black spots,” areas where their phones can’t reach a terrestrial cell tower. Lynk’s market research showed that ~15% of mobile users globally are disconnected at any given time. Devices in black spots can request satellite-to-phone service—and, as the tech demo showed, the satellite is happy to oblige.
The execution: Lynk reported that its satellite connected to thousands of devices in the US, UK, New Zealand, Bahamas and Canada. And that’s not just phones and tablets—the service reached IoT devices, cars, and tractors, according to a press release. These devices came from eight out of the world’s top ten mobile network operators.
Lynk has contracts with seven MNOs, which will be the first to benefit from the “cell towers in space” when they go online in a rollout planned for later this year. The company said more MNO partnerships are on the way.
Once service is switched on, Lynk’s satellites will only support data-light applications (like SMS messaging). Up next: Last year, Miller told us a critical mass of ~1,500 satellites would be required for global coverage. That’s the first step (or leap). Then, Lynk will funnel revenue into developing more powerful, next-gen satellites that unlock more capacity on the network—and support more bandwidth-intensive applications. “We’ll create this virtuous cycle,” Miller said. And it all starts with these initial demos.
Satellite-direct-to-phone service everywhere on the planet
Currently, about 90% of the planet and 75% of the Earth’s landmass has no cell tower connectivity either because it is not economical (very low-density areas) or physically impossible (in the ocean). Building land-based cell towers in uncovered regions is economically unsustainable. Lynk’s transformative global communications solution moves the traditional cell tower onto small satellites in Low Earth Orbit. Lynk’s constellation provides direct connectivity to 3GPP standard mobile devices on the ground including mobile phones and cellular IoT devices. Lynk’s patented technology compensates for Doppler shift (the cell tower is moving relative to the mobile device) and extended range time delay cell tower is now ~500 km from the mobile device) to provide global affordable mobile coverage. In 2021, Lynk proved its technology by connecting thousands of mobile devices across five countries with Lynk’s fifth satellite, Shannon. This technical milestone is the first step in connecting everyone everywhere outside terrestrial tower coverage using their existing, unmodified mobile devices. On April 1, 2022, Lynk launched its first commercial-ready satellite enabling the company to begin providing commercial service later in 2022.
Benefits:
Ubiquitous global mobile coverage for billions of people Mobile network resiliency not impacted by natural disasters Alleviating digital poverty in remote or dispersed communities Lynk Global Inc. Mahmoud Khafagy, Margo Deckard, Tyghe Speidel info@lynk.world lynk.world
AST SpaceMobile Notches 5G Direct-to-Cell Success
Direct-to-cell technology has taken another step forward. AST SpaceMobile ($ASTS) announced yesterday that it successfully demonstrated 5G connectivity with an unmodified smartphone from space for the first time.
Call incoming Direct-to-cell capabilities have gained traction in recent years, with several companies—including ASTS, Lynk Global, and SpaceX—working on incorporating the technology into their constellations.
Essentially, capable satellites mimic cell towers, enabling cell service across the globe, including in dead zones where terrestrial towers don’t reach.
It’s also useful as an emergency backup when disaster strikes. Iridium, for example, has partnered with Qualcomm to develop compatible smartphones to tap into satellite networks specifically in case of an emergency.
The technology is new, but these providers are betting on rapid customer adoption and growth. On a panel at World Satellite Business Week, Lynk CEO Charles Miller estimated that the market will reach $1B within the next five years. (Lynk demonstrated direct-to-cell capabilities with unmodified smartphones up to 4G in Feb. 2022.)
The demo ASTS reported that it used its BlueWalker 3 LEO test satellite and AT&T’s spectrum to connect with an unmodified smartphone in Hawaii on Sept. 8 and facilitate a call with a Vodafone engineer in Madrid.
5G connectivity between unmodified smartphones has never before been demonstrated from space, the company said.
Market check: $ASTS stock was up 8.66% at EOD Tuesday.