The satellite industrys most expensive problem isnt in orbit
AST SpaceMobile recently deployed three more BlueBird satellites into low Earth orbit as it advances plans for a space-based cellular broadband network of 45 to 60 satellites by the end of the year. SpaceX already has more than 650 direct-to-device satellites in orbit and a live commercial service with T-Mobile. Skylo's network has 15 million connected devices, and Iridium is preparing NTN Direct for commercial launch.
In all, more than 275 partnerships between satellite and mobile network operators (MNOs) enable phones, vehicles and IoT sensors around the world to remain connected when terrestrial coverage is unavailable. Yet most MNOs still process payments for these partnerships through a financial system that dates to 1991, and nobody agrees on how to replace it.
The satellite and telecommunications industries want to expand global connectivity, but they come from very different worlds. When they do work together, the results are promising. Pilot projects are successful, and investment is pouring in. But almost nothing goes live, because the systems and processes that connect these two industries largely don't exist.
MNOs, for the most part, haven't yet seen a meaningful return on investment. Satellite roaming traffic flows only one way, so they're always paying out to satellite operators and never collecting inbound roaming revenue. Today, this gives them limited incentive to invest in making these partnerships work.
Because they're not investing, they're not upgrading their billing and settlement infrastructure. Most MNOs still operate under a clearing standard that was built for minutes, messages and data volume, while satellite operators charge differently. As a result, both sides end up trying to force commercial arrangements through incompatible processes, and the workarounds they create can't be scaled. That keeps traffic volumes small. MNOs look at those returns and feel vindicated, but their belief that satellite isn't worth the investment prevented upgrades in the first place.
Interestingly, satellite operators' naivety can lead to productive conversations. They don't carry 30 years of assumptions about how mobile commerce is supposed to work, so they propose commercial models, like charging per satellite connection, that MNOs never considered. But MNOs' instincts are to push back, even though they faced a very similar problem decades ago.
Back then, when mobile roaming was new, they had no way to handle traffic across borders. Over time, they came together to create frameworks and standards that ensure interoperability across hundreds of networks and handle billions of dollars in settlements. That's why your phone works when you land in another country. Today, there are more than 900 Voice over LTE roaming agreements, and the worldwide roaming market exceeds $80 billion a year.
That history should inform what happens next. The industry has to commit to the GSMA's Billing and Charging Evolution (BCE) framework. It already supports the flexible charging models that satellite connectivity requires, but adoption has been slow partly because MNOs don't see enough near-term satellite revenue to justify a change. Terrestrial roaming revenue took off after common settlement processes were put in place, and broader BCE adoption has to happen for satellite communications to reach their commercial potential.
When industries hesitate during moments like these, they pay for it. German automakers watched electric vehicles gain traction for years, but they thought they could afford to wait. They couldn't. Their market dominance and their reputation didn't protect them once they began to fall behind foreign competitors in EV manufacturing.
Within five years, a person will make a standard voice call over satellite from the open ocean on a regular phone. The technology is already being tested. Making it work reliably, everywhere, means that two industries that have never had to depend on each other will need to figure out how. The longer that takes, the fewer companies will be around to do it.
Darío Buschiazzo is Senior Director of Business Development at Syniverse, where he develops and brings new telecommunications solutions to market. He has more than 15 years of experience across the telecom industry, with a background spanning network deployment, project management and product strategy.
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