Next year, India may enter a new era of telecom connectivity with Direct-to-Device (D2D) technology, which would allow smartphones to stay connected in areas with poor or no terrestrial coverage. Vodafone Idea Ltd has partnered with AST SpaceMobile to provide direct-to-consumer services in India’s remote areas.

AST SpaceMobile plans to launch over 243 low-Earth orbit satellites to support this initiative. The startup has already formed partnerships with over 50 mobile network providers worldwide, intending to serve clients who frequently move across network zones.

International players like Lynk Global, Iridium, Amazon’s Kuiper, Globalstar, and Starlink are attracted to the D2D segment. Starlink, which has over 7,800 satellites, is testing D2D capabilities with T-Mobile and investigating agreements with Reliance Jio and Bharti Airtel in India. 

D2D services provide a low-cost alternative to satellite phones by allowing consumers to continue using their existing smartphones. Despite 99% population coverage, India’s large geographic regions lack network access, making D2D services important for travellers and the logistics industry.

According to industry estimates, approximately 5% of smartphone users may adopt D2D, contributing 10-15% to telco revenues. The government’s impending spectrum decisions may have an impact on how these services transform the Indian telecom sector.