What's Happening?
The direct-to-device (D2D) market, which allows smartphones to connect directly to satellites, is experiencing growth, largely driven by Starlink's expansion. Despite this, only a small percentage of mobile
users have utilized D2D services. In the U.S., just 0.46% of cellular users engaged with D2D in March 2026. The technology is primarily used to provide connectivity in areas lacking terrestrial networks, with future developments aiming to support 5G-like functions. While the U.S. leads in D2D activity, the overall adoption remains low due to limited awareness and the extensive coverage of terrestrial networks.
Why It's Important?
The rise of D2D technology represents a significant shift in how connectivity can be provided, especially in remote areas. As the technology matures, it could reduce the need for additional cell towers, impacting the business models of cell tower operators. The potential for D2D to offer broadband connectivity could transform rural internet access, providing new opportunities for economic development and digital inclusion. However, the current low adoption rate highlights the need for increased awareness and technological advancements to fully realize its benefits.
