New Analysis: There is No Substitute for Terrestrial Wireless Infrastructure

Reports confirm complementary nature of satellite D2D services

ARLINGTON, Va. — As satellite direct-to-device (D2D) services gain momentum through new partnerships, investments, and technology developments, two new analyst reports conclude that while satellite connectivity can play an important role in extending service to remote, rural, and disaster-affected areas, it is not a replacement for the terrestrial wireless infrastructure that powers modern mobile networks. The reports find that satellite and terrestrial networks are complementary technologies that serve distinct roles within the wireless ecosystem.

The two independent reports by Mobile Experts Inc. and TMF Associates, commissioned by the Wireless Infrastructure Association (WIA), are titled Satellite Direct-to-Device: A Supplement for Terrestrial Cell Coverage and Will Satellites Replace Cell Towers? Together, they provide a practical, physics and economics-based assessment of satellite D2D’s capabilities and limitations.

“The physics and economics of wireless networks tell a consistent story that satellites are not a replacement for wireless infrastructure on the ground,” said Joe Madden, President of Mobile Experts Inc. “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.”

“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,” said Tim Farrar, President of TMF Associates. “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.”

The reports identify four key factors that limit satellite D2D’s ability to serve as a substitute for terrestrial networks:

Signal Strength: Satellite signals must travel hundreds of miles between a mobile device and a satellite, resulting in weaker connections and significantly greater challenges for indoor coverage than terrestrial networks.

Capacity: Because satellite beams cover much larger geographic areas than terrestrial cell sites, limited available spectrum and capacity must be shared among many more users.

Limited Usage: D2D services are already available today.  However, because terrestrial networks already cover the vast majority of places where U.S. consumers work and travel, current satellite D2D usage remains minimal, accounting for only a small fraction of wireless activity and network traffic, with most usage occurring in very remote areas, such as national parks.

Financial Viability: While satellite D2D can be a cost-effective solution for extending coverage in truly remote locations, terrestrial networks remain the more economical and higher-capacity option for the communities where most Americans live and work.

Despite rapid advances in satellite connectivity, both reports reach the same conclusion that satellite D2D is best viewed as a complement to terrestrial infrastructure rather than a substitute for it.

“The findings are clear: satellite D2D and terrestrial networks serve different purposes,” said Patrick Halley, President and CEO of WIA. “Satellite connectivity can help extend coverage in remote and hard-to-reach areas, but terrestrial infrastructure – towers, small cells and private indoor networks – remain essential to delivering the fast, reliable wireless service that every American consumer and enterprise depends on.”

The full reports and additional resources are available on WIA.org.

About WIA

The Wireless Infrastructure Association represents the businesses that build, develop, own, and operate the nation’s wireless infrastructure. WIA advocates for the widespread, responsible deployment of wireless infrastructure to enable connectivity, innovation, economic growth, and opportunity across the United States.

Media Contact: april.ward@wia.org