There is No Substitute for Terrestrial Wireless Infrastructure

New analysis confirms complementary nature of satellite D2D service

As satellite direct-to-device (D2D) gains attention through new partnerships, launches, and technology advancements, two independent analyst reports examine its opportunities, limitations, and role in America’s wireless future. The findings are clear: satellite D2D can extend coverage in remote areas, but terrestrial infrastructure remains essential for the capacity, performance, and reliability consumers expect.

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What the Satellite Direct-to-Device Reports Found

With new satellite launches, carrier partnerships, and D2D announcements generating significant industry attention, questions continue to emerge about whether satellite communications could someday replace traditional wireless networks. To better understand the facts, WIA commissioned independent analysis from TMF Associates and Mobile Experts. Together, the reports examine the technical capabilities, limitations, market realities, and economics of satellite D2D services.

Satellite D2D Extends Coverage

Satellite D2D can help provide coverage in remote areas, national parks, oceans, mountainous terrain, or disaster-affected locations. This capability can strengthen network resiliency and help fill coverage gaps where terrestrial deployment is impractical.

Physics Matter

Satellite signals travel hundreds of miles between devices and satellites, resulting in weaker signal strength, indoor penetration challenges, and more limited performance compared with nearby terrestrial sites. The reports identify these physical realities as a primary constraint on satellite D2D services.

Current Usage Remains Limited

The reports note that satellite D2D currently accounts for only a small fraction of wireless activity and most current usage occurs in remote locations such as national parks.

Terrestrial Networks Remain Essential

Towers, small cells and private indoor networks continue to provide high capacity, faster speeds, indoor coverage, and everyday reliability. These are the capabilities consumers, businesses, and public safety organizations depend on daily.

Capacity is Finite

Satellite beams serve very large geographic areas and must share limited spectrum among many users. As a result, satellite D2D cannot currently deliver the capacity levels associated with terrestrial cellular networks.

Economic Reality

Satellite D2D can be cost-effective in extremely remote areas. However, terrestrial infrastructure remains the lower-cost, higher-capacity solution for most places where Americans live and work.

Satellite Direct-to-Device vs. Terrestrial Networks

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Infographic
Satellite D2D PurposesTerrestrial Network Purposes
Remote coverageEveryday connectivity
Emergency communicationsHigh-capacity service
Coverage gap supportFast speeds
Network redundancy Indoor coverage
Hard-to-reach locationsReliable performance

Based on findings from TMF Associates and Mobile Experts.

Joe Madden

President of Mobile Experts

“The physics and economics of wireless networks tell a consistent story that satellites are not a replacement for wireless infrastructure on the ground. Satellite D2D can help extend coverage in remote areas, but terrestrial networks will continue to provide the speed, capacity, reliability, and coverage that consumers and businesses expect.”

    Tim Farrar

    President of TMF Associates

    “The momentum behind satellite innovation has sparked an important conversation about the future of wireless connectivity and the role satellites can realistically play alongside terrestrial networks. Satellite D2D can help expand coverage in remote and hard-to-reach areas, but it cannot replicate the speed, capacity, indoor coverage, and reliability provided by terrestrial networks. The strongest wireless future will leverage both technologies for the purposes they serve best.”

      FAQs

      Terrestrial infrastructure, including towers and small cells, remains essential to meeting today’s expanding wireless demand. Distance to the end user (a couple of miles max vs hundreds of miles), the shared nature of a satellite beam across a wide geographic area, the amount of signal power required, and the amount of spectrum available are currently limiting factors for D2D. Terrestrial-based infrastructure continues to be essential for mobile connectivity.

      D2D requires line of sight to the satellites meaning coverage will generally not work indoors or in crowded urban areas.

      D2D currently supports basic texting capabilities with some providers delivering voice, but high-bandwidth applications like video and picture messaging and using internet-connected applications are not currently supported outside of laboratory conditions. U.S. mobile data consumption continues to rise on an exponential basis with terrestrial operators constantly deploying new infrastructure to meet the demand.

      Despite any shared company names and even shared satellites, your mobile device cannot support the same level of connectivity as satellite broadband for homes. For some locations, fixed satellite broadband services achieve comparable speeds to other fixed broadband technologies through advanced on-premise equipment and engineering solutions that rely on a fixed location, presenting persistent barriers to achieving the same quality of service on the move.

      There will always be places where terrestrial networks are not viable for a number of reasons. D2D provides a great complimentary service allowing basic access to vital communications where it previously did not exist.

      The Bottom Line

      Satellite D2D extends wireless coverage in highly remote areas. Terrestrial infrastructure delivers the capacity, performance, and reliability that power everyday connectivity. While there is no substitute for terrestrial wireless infrastructure, America’s wireless future depends on both technologies.

      Read the Press Release