Anatel releases Direct-to-Device tests in Brazil

The National Telecommunications Agency (Anatel) has granted authorisation for the temporary use of radio frequencies in the 800 MHz band to carry out tests of direct communication between satellites and smartphones, an application known as Direct-to-Device (D2D). The measure was implemented by means of Act 6.359 of 1 May 2024.

The tests will involve low earth orbit (LEO) satellites developed specifically to operate in radio frequency bands already used by terrestrial mobile telephone systems. The experiments are the result of a partnership between satellite operators and personal mobile service providers.

According to Anatel, the first tests will be carried out in the city of São Luís, in Maranhão, between May and June 2024. With these tests, it will be possible to evaluate new solutions for mobile communication in Brazil, with the potential to expand the coverage of mobile systems in the future.

The mobile phones used in the tests will not need to be changed. In the future, once the solution has been developed and implemented on a large scale, it will be possible to use ordinary smart phones to communicate directly with satellites. This type of solution is not yet offered commercially. The tests will assess the technical and regulatory aspects of using this type of communication on a large scale.

Elon Musk is already doing it

At the beginning of 2024, Starlink announced its first satellites with Direct to Cell capabilities. In Elon Musk’s case, the system will allow mobile network operators around the world to guarantee continuous access initially to text messages and, in the coming years, voice and data coverage without changing any hardware or firmware.

Starlink’s Direct to Cell satellites have an advanced modem that acts like a mobile phone tower in space, eliminating dead zones with integration similar to a conventional roaming partner.

Last November, SpaceX submitted an application to the US Federal Communications Commission (FCC) for an experimental licence for 180 days from 10 December 2023 to test second-generation non-geostationary orbit satellites with direct mobile communication payloads, aimed at connecting unmodified mobile phones directly to SpaceX Gen2 satellites. Over this period, SpaceX intends to operate around 840 satellites with this type of payload. This launch, originally scheduled for mid-December, was delayed and only took place on the second day of 2024.

Regarding the launch of the Direct to Cell satellites, Elon Musk made comments on the X platform (formerly Twitter), stating that the satellites ‘will offer mobile phone connectivity anywhere on Earth’, but pointed out that there are technological limitations. ‘It only supports ~7Mb per beam, and the beams are very large, so while it’s a great solution for locations without a cellular connection, it’s not very competitive compared to current terrestrial cellular networks,’ said Musk.

D2D Market

Companies that intend to operate in the Direct-to-Device segment are establishing partnerships with terrestrial telecoms service providers interested in filling coverage gaps in their networks. Starlink itself is already working to offer Direct to Cell capabilities to cellular system providers T-Mobile in the United States, Rogers in Canada, KDDI in Japan, Optus in Australia, One NZ in New Zealand, Salt in Switzerland and Entel in Chile and Peru.

The size of D2D is still an open question with a number of variables, such as geographical coverage (regional or global), the applications the services will work with and the speed of data transfer.

In an article on the SpaceNews  website last year, research firms ventured to quote some figures associated with the emerging D2D market. A study by GSMA Intelligence suggested a total incremental revenue opportunity of more than $30 billion by 2035. Quilty Space talks of an addressable market of up to $168 billion if every potential customer paid for the service, with a market penetration rate of between 5 and 15 per cent seen as achievable in the short term.

The first user groups to adopt D2D communication will probably be the emergency services, as SOS alerts don’t require a lot of bandwidth. This market segment alone could be valued at $45 billion a year in the developed world, according to a report by Quilty Space. Rural users, travellers and practitioners of outdoor activities and extreme sports could also be the first to gain the attention of D2D services.