Moulding a successful collaboration: satellite and terrestrial convergence for direct to device and mobile satellite services

How to optimise the collaboration model? - As MNOs and satellite players look at fashioning their new collaboration structures, a primary issue is how to generate increased value, whether using D2D, MSS, IoT or other services. For some, this is focussed (at least initially) on disaster response connectivity, while others are targeting a wider range of communications. Recent customer surveys indicate that users place significant value on the additional functionality offered by D2D services, enhancing loyalty in highly competitive markets.

With a variety of commercial models being adopted, businesses are evaluating how best to create a model which delivers a win-win solution, recognising the different dynamics of the terrestrial and satellite traditions. Whether the preferred approach is partnering, white labelling, distribution or reselling, the focus will be on finding the model which marries the complementary offerings together successfully.

In this rapidly evolving landscape, we are also seeing new intermediary players offering services to bridge the gap between space- and ground-based operators, managing the technology stack required to provide a seamless end to end service.

Many of these structuring challenges will also arise with other innovative communications services such as high altitude platform services (HAPS).

Who carries the regulatory can? - Among the key questions is how the combined services will be licensed. In addition to the need for spectrum usage to cover roaming across terrestrial networks, satellite channels and handsets, many jurisdictions are grappling with how the D2D, MSS and other services should be licensed in principle. This is currently under review both in Europe, via the CEPT, and in the UK following the Ofcom consultation in March 2025. Click here for further detail in our commentary on these issues.

For some collaborations, where the MNO spectrum needs to be used by the satellite operator or intermediary, there will be a particular challenge of assessing how this spectrum sharing sits happily with the MNO's existing licence obligations.

How to deliver end to end services smoothly? - As the delivery of the end user service depends on an efficient end to end collaboration, the responsibilities for each limb of the communication pathway will need careful treatment in the collaboration contracts. While MNOs are accustomed to managing these issues in a purely terrestrial roaming context, the addition of the satellite leg may require the issue to be reassessed, both during the early stages of the joint service, and longer term, as well as when the signal is delivered direct from space.

Cybersecurity and network security – cyber and network security issues are now higher on the agenda, not least due to the range of new laws being rolled out, such as the latest EU-wide network security regime (NIS2) and the UK's updates to its own cyber security laws expected soon. All players will be looking at their own compliance responsibilities, and how these impact on the allocation of contract obligations in a D2D/MSS/IoT collaboration deal.

Fine tuning the data compliance angles – with the increasing complexity of the data compliance landscape internationally, and recognising the key issue of customer ownership, both satellite and terrestrial operators will be assessing how the new forms of collaboration affect their traditional treatment of personal data, as well as the potential implications of the EU Data Act where the services are supporting connected products.