MWC Barcelona 2026 Space Sector Announcements: Will Direct-to-Cellular (D2C) Lead the Next Connectivity Wave?

• Starlink Mobile V2 Satellites for Direct-to-Cellular (D2C) Services: At MWC Barcelona 2026 (MWC26), SpaceX President and Chief Operating Officer (COO) Gwen Shotwell, and Senior Vice President (SVP) of Starlink Mike Nichols delivered a keynote speech highlighting the progress of their D2C service from their V1 satellites. The Gen 2 satellites will leverage S-Band spectrum acquired from EchoStar last year to provide terrestrial-like connectivity and deliver full cellular coverage worldwide. Improved capabilities such as higher bandwidth link capability, larger phased array antennas, and improved link performance will enable a significantly better user experience, and the service is expected to be launched commercially in mid-2027, employing The 3rd Generation Partnership Project (3GPP) Release-19 New Radio (NR)-Non-Terrestrial Network (NTN) standards. In addition, Deutsche Telekom announced that it will collaborate with Starlink to bring this service to Europe and expand its network coverage area.
• AST SpaceMobile Expands Partnerships with MNOs: AST SpaceMobile announced that it has added two key Canadian Mobile Network Operator (MNO) partners—Bell and TELUS—for its satellite-based cellular service. Orange (France) also signed two satellite Direct-to-Device (D2D) deals with AST SpaceMobile for satellite services: 1) developing a service for Orange subsidiaries outside Europe to provide complementary coverage to terrestrial mobile networks in regions such as Africa; and 2) a partnership with Satellite Connect Europe (joint venture between AST SpaceMobile and Vodafone’s Group) that launched in February 2026 to deliver D2D satellite broadband across Europe.
• Equatys D2D Infrastructure Progress: Equatys (joint venture between Space42 and Viasat) shared that its system will operate on a TowerCo or neutral host model (acting as an independent, neutral “space tower” that combines shared space and ground NTN infrastructure) and is expected to operate in globally harmonized L- and S-Band Mobile Satellite Service (MSS) spectrum initially, with technical capability to operate across over 100 Megahertz (MHz) of globally allocated spectrum. This model will follow a wholesale approach, aiming to lower costs and improve spectrum efficiency, while offering services to operators, governments, and local industries. It is also designed to welcome additional co-founders, satellite operators, and spectrum holders as the ecosystem develops. Equatys' shared multi-tenant infrastructure will be supported by up to 2,800 satellites deployed across 60 orbital planes and 3 altitude layers by Viasat and Space42.
• China Telecom and Huawei Won Best NTN Solution Award: Chinese firms are increasingly elevating satellites as key infrastructure in their global telecommunications stack. China Telecom and Huawei earned the Best NTN Solution award for their smartphone direct-to-Geostationary Earth Orbit (GEO) satellite connectivity technology. Moreover, besides space tech companies, the total number of Chinese companies exhibiting at the event has increased from approximately between 270 and 288 in 2025 to over 350 this year, highlighting their expanded presence on the global stage.

Given these developments, what will be the impact on satellite service capabilities, consumer and enterprise adoption rates, industry competition, and the broader ecosystem?

• Expansion of Service Capabilities: With the advancement of second-generation satellite constellations, service capabilities are expected to expand beyond emergency SOS communication and basic messaging to voice calls and data services. The number of paid users is projected to reach approximately 350 million users by 2035, with new service capabilities helping to retain and lock in customers. Moreover, the increased capacity results in improvements in latency, throughput, link performance, and reliability of the services, enabling new enterprise use cases across a range of industry verticals. At the same time, satellite operators are increasingly adopting 3GPP NTN standards and integrating with mobile operator networks through 5G NR NTN to support more seamless connectivity.
• Impact on End Users and Adoption Rates: With improved quality, reliability, and access to satellite-enabled services, consumer adoption is likely to grow. ABI Research forecasts that the total number of paid and free users will reach approximately 2.6 billion in 2035, growing at a Compound Annual Growth Rate (CAGR) of 10.9% between 2025 and 2035. As technology matures, the Average Revenue per User (ARPU) is expected to decline over time due to higher competition in the market. ABI Research forecasts that ARPU annually for the consumer segment is projected to decline from US$192 in 2025 to US$132 in 2035, at a negative CAGR of -3.7%. While satellite D2C services can complement terrestrial networks in remote and rural areas, they also have the potential to serve as a primary connectivity option for digital nomads, frequent travelers, and residents in suburban or outdoor settings. However, the main limitation is that connectivity remains challenging indoors, which emphasizes that telco-satellite partnerships are crucial in enabling seamless connectivity regardless of settings. Besides collaboration with telcos, some satellite service providers are working with satellite-equipment vendors (e.g., Intellian) that develop specialized antennas and equipment that can be installed in buildings or vehicles and allow satellite phones to function without needing a direct line of sight to the sky. At the same time, the growing number of partnerships between Satellite Network Operators (SNOs), MNOs, and Original Equipment Manufacturers (OEMs) demonstrates the potential for greater device compatibility that ultimately results in lower cost barriers, broader adoption, and a quicker commercial rollout of these services.
• Industry Competition and Ecosystem: There has been ongoing speculation on whether satellite connectivity will eventually replace terrestrial networks, and whether relationships between telco operators and satellite providers will be defined more as cooperation or competition. Recent partnerships between SNOs, MNOs, and OEMs show that the general attitude of the ecosystem is trending toward collaboration. The growing adoption of standards-based architecture (e.g., 3GPP NTN) further reinforces this trend, demonstrating that the telco-satellite integration is only going to deepen. While different partnership models exist—proprietary (Apple and Globalstar) and standards-based (Skylo, Starlink, AST SpaceMobile)—the broader connectivity ecosystem is ultimately converging to be more cooperative to deliver enhanced service quality for end users.   

From MWC26, D2C service announcements have been steadily rolling out, and more are to be expected at SATELLITE 2026 in Washington, D.C., later this month. Service operators now face the challenge of maintaining high service quality, while accelerating the pace of commercial deployment. What strategies can operators take to ensure this?

• Strengthen Telco-Satellite Partnerships: While this has already been ongoing for many telcos and satellite operators, these partnerships will become increasingly important as D2C services mature. With higher quality of services and capabilities, both parties need to leverage each other’s strengths in infrastructure, coverage, and customer reach. Stronger partnerships can accelerate service deployment and improve network resilience. This is especially crucial once full commercial service rollout is implemented, and the network infrastructure needs to handle higher data traffic and greater capacity demands.
• Prioritize Standards-Based Interoperability: The adoption of 3GPP NTN standards is key to ensure device compatibility and global scalability. Prioritizing standards-based D2C solutions reduces fragmentation in the connectivity ecosystem and allows for greater device compatibility, which supports the smoother rollout of commercial services. In addition, OEMs should continue integrating NTN support into smartphones and Internet of Things (IoT) devices in their new launches, allowing more devices to seamlessly access satellite-enabled connectivity as the ecosystem matures. In this way, there would be minimal time lag between service deployment and the availability of compatible devices in the market.  
• Invest in Ecosystem Development: The long-term success of D2C services will depend on a strong and holistic ecosystem, consisting of telcos, satellite operators, device manufacturers, chipset companies, and application developers. For example, apart from telco-satellite collaborations, major chipset vendors (Qualcomm, MediaTek, Samsung) are integrating L-band and S-band connectivity into their modern chips. Furthermore, these vendors are actively conducting trials and securing certifications for NTN satellite connectivity to enable D2C services. More investments and trials between various vendors can help accelerate the process and deployment of D2C services.