Turning Satellite Connectivity into Operator Revenue

Over the past few years, CCS Insight has been tracking the rise of satellite connectivity, which has now become a mainstream priority for the mobile industry. Our new special report produced in conjunction with Skylo explores how device-makers, mobile network operators and chipset suppliers are working to speed the journey to commercial reality using non-terrestrial networks (NTNs). Using our latest data and forecasts, it reveals why 2025 marks a tipping point for the satellite-enabled device ecosystem.

From Trials to Commercial Launches

Momentum for direct-to-device satellite services has accelerated quickly as mobile network operators in the US, Canada, Germany, Japan, Australia and New Zealand have moved beyond pilots to fully commercial offerings.

The appeal for operators is clear: satellite connectivity offers a way to extend coverage, raise average revenue per user, reduce churn and improve customer satisfaction, without the huge cost of building new terrestrial networks. For subscribers, it brings peace of mind in areas with little or no cellular coverage.

In Japan, KDDI has already reported more than 1 million users of its satellite messaging service. In New Zealand, One NZ has logged over 2 million messages, and Skylo’s global NTN platform now connects 10 million devices in 36 countries.

Standards-Based Solutions to the Fore

Much of this progress comes from the growing use of standards-based models. Using mobile-satellite services (MSS) spectrum, NTN capabilities are now included in 3GPP protocols, giving operators, manufacturers and regulators a consistent global framework to build on.

Major players such as SpaceX Starlink and AST SpaceMobile have secured their own MSS spectrum rights, joining providers like Globalstar, which works with Apple, and Skylo, whose partners include Google, KPN, Tele2, Telefonica and Verizon.

But success depends on how quickly device-makers can create a diverse market of NTN-enabled products.

The good news is that globally, more than 400 million smartphones are now satellite-capable — a remarkable figure given that it’s still early days for commercial services. Apple leads adoption, with satellite connectivity built into the iPhone 14 and later models, which account for more than 80% of all satellite-capable smartphones in use.

Android phone-makers have been slower, with support largely limited to premium models in the US, Europe and Australia. But we believe this will change as Chinese brands add satellite functionality to domestic devices and extend it to their international line-ups. Doing so will nurture demand in fast-growing markets in Africa, Latin America and Europe.

The Asia–Pacific region offers some of the strongest opportunities for expansion. Despite its high population coverage, large parts of the region remain beyond the reach of terrestrial networks. Satellite services can provide a cost-effective way to bridge these gaps, support digital inclusion goals and strengthen resilience in disaster-prone areas.

Latin America is another promising market. Brazil, with its mix of dense urban areas and remote rural areas, offers opportunities for operators to improve coverage and generate new revenue streams as NTN services become more widely available.