The new space race: Direct-to-device satellite communications and what it means for business

The space communications industry is experiencing an unprecedented boom, with launches occurring at a record-setting pace. Just recently, we witnessed six launches globally in a mere 18 hours, with four dedicated specifically to communication satellites. This acceleration is fueled by dramatically decreasing launch costs — from $20,000 per kilogram during the Space Shuttle era to under $2,000 per kilogram with SpaceX’s Falcon 9, and potentially dropping to just $10-20 per kilogram when Starship becomes fully operational for cargo. 

The numbers tell a compelling story: the space communications industry represents a $464 billion market, with 200 million direct-to-device capable smartphones sold in 2024 alone. Investors have poured $3 billion into direct-to-device satellite technology just this year, recognizing its transformative potential. 

For enterprises with remote workers or disaster recovery needs, understanding the evolving satellite communications landscape is becoming increasingly important. We’re witnessing a fundamental shift from traditional satellite phones — those bulky devices used by explorers on Mount Everest or military personnel in remote locations — to seamlessly integrated satellite capabilities in standard smartphones. 

This evolution is enabled by the transition from geostationary satellites orbiting 22,000 miles above Earth to low Earth orbit (LEO) constellations positioned just 300-600 miles up. The impact on performance is dramatic: Starlink’s LEO network now delivers lower latency than traditional fixed wireless access, meaning your data can travel to space and back faster than it moves through terrestrial cellular networks. 

Major industry players are forming strategic partnerships to capitalize on this technology. Apple has partnered with Globalstar to offer emergency SOS messaging on iPhone 14 and higher models. Google’s Pixel 9 works with Skylo for text-only capabilities. T-Mobile has teamed with Starlink, which currently has 400 satellites capable of providing SMS service using existing T-Mobile frequencies. AT&T initially partnered with OneWeb before investing $100 million in AST SpaceMobile, successfully testing voice, video and text on AST’s first five satellites. Verizon has followed a similar path, first exploring Amazon’s Project Kuiper before also investing in AST SpaceMobile. 

Despite the marketing hype reminiscent of early 5G promotions, enterprise-grade satellite communication options remain limited today. Organizations with remote workers can leverage device-based solutions like iPhone and Pixel with their satellite messaging capabilities. Still, these require a complete loss of cellular service to activate and offer limited functionality. 

For more robust needs, portable solutions like battery-powered Starlink mini units can provide temporary connectivity for up to four hours without external power. Looking ahead, we’re working on small cell solutions with CBRS LTE/5G capabilities that can create localized coverage zones connected via satellite backhaul. 

It’s essential to acknowledge that satellite communications will complement, rather than replace, terrestrial networks within our lifetime. The physics of satellite communications — including the 90-second window during which a fast-moving LEO satellite remains in your field of view – creates inherent limitations for real-time applications. 

At MetTel, we’re closely monitoring these developments and implementing relevant technologies to enhance our clients’ connectivity options. Just as we helped organizations separate reality from hype during the early days of 5G, we’re committed to providing clarity around satellite communications capabilities and practical applications for enterprise use. 

The space race is indeed back on for many reasons — human migration, scientific discovery, military dominance, national pride and global connectivity.  For enterprises seeking to ensure their workforce remains connected regardless of location, understanding these emerging options will be increasingly critical to maintaining operational resilience in our connected world.

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