Direct-to-cell technology (D2C) is set for massive growth in 2026 to reach $7.6 billion, that’s a 49% year-over-year growth, according to new data from TrendForce.
With the technology maturing and global mobile communication standards 3GPP Release 17 and Release 18 continue to integrate satellite communications (SATCOM) into the future standards, satellite operators are shifting to direct SATCOM connectivity for smartphones.
Additionally, telecoms are looking to SATCOM technology to offer a value-added feature to smartphones that will allow them to generate more revenues as subscriber growth stagnates. At least temporarily before these features become a standard staple in service.
What is direct-to-cell technology?
Direct-to-cell technology enables satellites to communicate directly with standard smartphones — no special hardware, no satellite phone or satellite terminal required.
Instead of a call or text going to a ground-based cell tower, it goes straight to a low-Earth orbit (LEO) satellite to the device. This could be useful for:
- People in remote areas
- Areas where cell infrastructure is weak
- Ocean-based facilities or transportation
- Mountain ranges
- Underdeveloped rural regions
- Enabling communications during natural disasters
SATCOM via direct-to-cell technology allows every square mile of the planet to become potentially serviceable, not just areas where it makes economic sense to build a cell tower.
D2C options
Elon Musk’s Starlink, a division of SpaceX, launched its Starlink Mobile service at Mobile World Congress 2026 (MWC) that will use its V2 satellites in LEO for text messaging, voice and video transmission.
Starlink recently signed a partnership with Deutsche Telekom that will allow users to automatically switch to Starlink’s SATCOM services when smartphones lose terrestrial service. In the U.S., Starlink launched a promotional bundle with U.S. mobile in April of 2026 for SATCOM coverage.
Meanwhile, AST SpaceMobile has a planned roll out of SATCOM D2C technology in the U.S. and Japan for messaging, video and voice in 2026.
It is likely this is just the beginning of the boom in major telecom operators adopting D2C as the user base broadens and individual consumers ask for the feature, TrendForce said.
It is also likely that many enterprise vendors will get behind the use of D2C especially those in remote locations like offshore, mines or farms. TrendForce said both Starlink and AST SpaceMobile are focusing on the U.S. market to build commercial momentum.
Amazon is also likely to get into the market after acquiring Globalstar for $11.6 billion in April of 2026. This deal will provide D2C services and is part of Amazon’s long-term vision for space-based connectivity. Amazon and Apple have already signed an agreement for Amazon Leo to power satellite services for its iPhone and Apple Watch so the deal will likely play a role there as well in the future.
Competitors emerging
TrendForce said there is also an emerging contingency of startups that may challenge some of the gains of the larger companies, specifically from Taiwanese companies as they enter the supply chains of major players. However, these vendors will face challenges in high-barrier technologies such as inter-satellite laser communication (ISL), where limitations in system integration capabilities persist.
