3GPP Standards and Lower Satellite Costs Spurring Move to D2D
The 3rd Generation Partnership Project’s approval of non-terrestrial network (NTN) technology as part of 5G is key to broader adoption of direct-to-device (D2D) service by top wireless carriers, said Tim Hatt, GSMA's head-research and consulting, during a Mobile World Live webinar Thursday. 3GPP standards will lead to economy of scale for the device ecosystem and a larger market, he said.
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Hatt said D2D service is possible because the growing number of low earth orbit satellites is making connections cheaper. “With a lower cost structure,” the technology “brings … connectivity right to the handset,” he said. “People are going to be able to access connectivity in places they couldn’t necessarily before” and potentially at a lower cost.
Companies like AST and Starlink want to provide D2D service using terrestrial spectrum, in partnership with carriers, while other companies want to use mobile satellite service spectrum, Hatt said. Chipset and device vendors “are kind of coalescing” around open standards, he said. The bigger question is “who moves first and to what extent NTN is positioned as a competitive differentiator.” Network quality remains “the number one purchasing attribute that customers take into account” in selecting a wireless provider, Hatt noted.
“All the pieces of the puzzle are there” for D2D growth, said Daniele Finocchiaro, Eutelsat's innovation projects coordinator. “D2D can become a reality” because of new technologies, the 3GPP standard and growing user demand, he said.
Geostationary orbit (GSO) satellites cover broad areas and are very stable, but they have a weak signal because of their distance from the Earth, Finocchiaro said. Using LEO satellites requires a constellation of them for broad coverage, and “the business plan is completely different.” Some see high-altitude platforms playing a role in D2D communications, Finocchiaro said, but he doesn’t see a business case or market for those platforms so far. In the end, the 3GPP standard “will be applicable” to any type of satellite service, he predicted.
“The jury is still out” on how much customers will be willing to pay for D2D, said Kevin Cohen, Viasat's vice president-strategic initiatives. For asset tracking in countries where almost all areas have terrestrial coverage, “maybe that’s not such an interesting use case.” In a country like Brazil, where many of the highways don’t have coverage, companies will be more willing to pay for D2D, he said.