A new study by Juniper Research anticipates that the first year of commercial direct-to-cell services will be 2025; generating a modest $30 million in revenue globally.
However, Juniper forecasts that operators will generate almost $1.7 billion by 2029. Despite this impressive 8,000% growth, the study predicts that operators will face challenges in securing a return on their substantial investment into the creation of Direct-To-Cell networks.
Direct-To-Cell services enable cellular connections to access network services directly from satellites on-orbit. These services are enabled by satellite-capable radios in devices and partnerships with satellite network operators.
An extract from the new report, Global Direct-to-Cell Market 2024-2029, is now available as a free download.
The study identified two key challenges in maximizing return on investment:
- The low cost of low-power IoT connections
- The commoditization of connectivity
Owing to the demand for connectivity and remote monitoring from nomadic industries, such as maritime, the report predicts that low-power connections will represent the most prominent use case for Direct-To-Cell. However, these connections will generate an average of less than $2.00 per month; diminishing operators’ ability to secure a return on investment.
Given the commoditization of mobile connectivity, the study also predicts that operators will struggle to convince mobile subscribers to adopt an additional subscription for Direct-To-Cell services on top of existing cellular plans. As such, we urge operators to focus on tailoring Direct-To-Cellservices specifically to nomadic travelers and remote subscribers.
The new research suite offers the most comprehensive assessment of the Direct-to-Cell market to date, including insightful market analysis and in-depth forecasts for 60 countries. The dataset contains over 23,000 market statistics within a five-year period. It also includes case studies for the leading satellite network operators.
Research author Sam Barker said, “Operators must promote the substantial coverage their direct-to-cell networks serve and apply premium pricing for data-intensive connections for broadband and consumer use cases. This will attract users of profitable Direct-To-Cell services, such as mobile broadband and smartphone subscriptions.”