The nascent satellite mobile broadband, or direct-to-device (D2D), market has a fresh-faced challenger with Elveo Mobile following the merger of Lynk and Omnispace. It is the latest deal reshaping the satellite communications sector around the potential to connect smartphones and Internet of things (IoT) devices and, importantly, acquire prized mobile satellite service (MSS) spectrum rights.
The satellite industry has been through waves of consolidation before. Some recent examples are Viasat’s acquisition of Inmarsat and Eutelsat buying OneWeb in 2023, while SES completed its acquisition of Intelsat last year.
In the current M&A round, a common thread is getting access to MSS spectrum to connect devices and smartphones directly from satellites.
There are two ways to deliver satellite connectivity to devices. Satellite operators can share terrestrial spectrum provided by mobile operator partners, which is the approach of AST SpaceMobile and Starlink Mobile’s initial service. Alternatively, they can use MSS frequencies, which is what Skylo does as well as Globalstar’s service for Apple devices.
Terrestrial spectrum reaches more devices but is burdened by regulatory hurdles, interference risks and some reluctance among mobile operators to share it.
MSS spectrum, a lot of which was originally allocated many years ago, requires updates to devices to support it, but the frequencies are dedicated to satellite services. This offers “a clearer and potentially more internationally scalable route” to D2D, according to Luke Pearce, principal analyst at FDM CCS Insight.
“Direct-to-device has transformed MSS spectrum from a relatively niche asset into a scarce and strategically valuable foundation for mass-market connectivity,” Pearce said. “MSS spectrum is finite, geographically fragmented and difficult to obtain organically, so acquiring or partnering with an existing rights-holder can remove years of regulatory and commercial uncertainty.”
M&A moves in the last 12 months show how this is playing out. Here’s the latest on the most prominent deals and where they stand:
SpaceX’s EchoStar spectrum grab
The transaction that put satellite spectrum in the spotlight: Elon Musk’s SpaceX is splashing nearly $20 billion in cash and stock to acquire spectrum licenses from EchoStar, including AWS-4, H-block and unpaired AWS-3. Announced in September last year, the deal is expected to close around November 2027.
The move sparked ongoing speculation about Musk’s plans for mobile services – will he be content as a complement to fill in coverage gaps or does he want to compete with terrestrial operators? That question was answered earlier this month when SpaceX said it intends to build a hybrid satellite-terrestrial network, using 65MHz of EchoStar spectrum, and compete directly with US carriers.
The satellite portion of the network will be SpaceX’s next-generation mobile constellation, which is planned to launch next year with services expected by the end of it. The terrestrial bit would involve a mesh of rooftop small cells deployed with Starlink broadband dishes, an idea that has been widely criticized by wireless experts.
Amazon nabs Globalstar (and Apple deal)
Amazon announced an agreement to acquire Globalstar for $11.6 billion in April to expand the Amazon Leo network into D2D services. The mobile constellation is planned for launch in 2028. With this deal, expected to close sometime in 2027, Amazon will gain satellites, spectrum and a relationship with Apple.
The agreement with Apple would give Amazon an advantage in terms of having access to satellite-capable devices. According to CCS Insight, 527 million phones have built-in satellite connectivity support, of which about 90% are iPhones.
Globalstar’s spectrum rights include about 25MHz across L-band and S-band MSS spectrum as well as 11.5MHz in the terrestrial 2.4GHz midband, which the operator has used for its private 5G network offerings.
Rocket Lab snaps up Iridium
Rocket Lab is buying Iridium in a deal that values the satellite operator at around $8 billion to create a vertically integrated “space super power.” The combo will bring together Rocket Lab’s satellite manufacturing and launch capabilities with Iridium’s satellite constellations, positioning and connectivity services, as well as rights to 9MHz of valuable L-band MSS spectrum.
Iridium’s D2D focus is on narrowband IoT for mission critical applications, which is different from what Starlink, AST SpaceMobile and Amazon Leo are planning. The transaction is expected to complete in mid-2027.
Lynk seals deal with Omnispace, launches Elveo Mobile
Elveo Mobile is the global D2D player resulting from the merger of Lynk and Omnispace that was finalized last week. It will provide connectivity for smartphones and IoT devices worldwide via multi-orbit satellites using terrestrial and MSS spectrum in partnership with mobile network operators and other enterprises. Elveo Mobile has contracts with 56 mobile operators covering 60 countries.
The combined entity has international rights to 60MHz of S-band MSS spectrum from Omnispace. Luxembourg-based SES is a strategic investor, having invested in both operators separately, that also provides access to its own satellite constellations, ground infrastructure and sales, operations, engineering and regulatory support.
Elveo Mobile plans to start deploying a constellation of 320 LEO satellites and launch commercial services by early 2028.
Joining forces via JVs
There are also some new satellite joint ventures taking shape. Viasat and Space42 are putting together a JV called Equatys that would pool their satellite infrastructure and L-band and S-band MSS spectrum to operate as a neutral towerco in space for other D2D providers.
Meanwhile, AST Spacemobile and Vodafone launched their Satellite Connect Europe JV in February. It is based in Luxembourg with operations in Germany, and it is building five ground stations across the continent. AST Spacemobile is forming a similar JV in Japan with mobile operator Rakuten to build the national Japan LEO satellite communications project (J-LEO).
For more, here’s our latest coverage on this fast-changing space:
NTT Docomo expands Starlink deal for mobile broadband upgrade
Small cells, big mess – why Musk’s SpaceX telecom plan won’t work
Lynk and Omnispace merger creates D2D challenger Elveo Mobile
Study pours more cold water on SpaceX’s small cell plan
AST SpaceMobile keeps in with MNOs as a SpaceX antidote
Eutelsat hails 5G NTN to take on ‘American giants’
SpaceX small cell plan serves up more Musk madness
Musk’s mobile network moonshot is in danger of a crash landing
Wispa warns FCC of ‘unsupported conclusions’ in D2D proceeding
Starlink targets D2C trial in Malaysia amid D2C boom across APAC
Amazon Leo files plan to deploy 5,105 D2D satellites
T-Mobile looks to new JV for D2D but still tied to Starlink
Amazon and Globalstar fire back at Yippy’s yapping
AT&T CEO: A satellite MVNO pact would solve a problem I don’t have
Is spectrum SpaceX’s ticket to an MVNO deal?
AST SpaceMobile says D2D satellite launch plan delayed to 2027
Satellite D2D goes global as Africa gears up for service launches – GSA
