Direct-to-cell services enable cellular connections to access network services directly from satellites in orbit.
The commercial direct-to-cell services will launch in 2025, generating $30m in global revenue in their first year, according to a new study by Juniper Research.
The report, titled Global Direct-to-Cell Market 2024-2029, predicted a dramatic rise, with operators expected to bring in nearly $1.7bn by 2029an impressive growth of 8,000%. However, despite this significant increase, the study highlights the challenges operators may face in recouping their investments in direct-to-cell networks.
Direct-to-cell services enable devices with satellite-capable radios to connect directly to network services via satellites in orbit, thanks to partnerships with satellite network operators. The report identifies high demand from nomadic industries, such as maritime, for low-power connections as the primary use case for these services. However, these connections are expected to generate less than $2.00 per month on average, limiting operators’ ability to recover their investment.
The study also noted that due to the commoditisation of mobile connectivity, operators may struggle to convince regular mobile subscribers to pay for direct-to-cell services in addition to their existing cellular plans. As a result, Juniper Research advises operators to focus on targeting nomadic travellers and remote users for these services.
Research author Sam Barker remarked: Operators must promote the substantial coverage their direct-to-cell networks serve and apply premium pricing for data-intensive connections for broadband and consumer use cases. This will attract users of profitable direct-to-cell services, such as mobile broadband and smartphone subscriptions.
