- Telefónica and Orange have launched trials of direct-to-device satellite connectivity in Europe.
- The initiative marks a step towards hybrid terrestrial–satellite mobile services using standard handsets.
What happened: Testing space-to-handset links
Telefónica and Orange have begun exploring direct-to-device (D2D) satellite connectivity in Europe, signalling a shift by traditional mobile operators towards integrated space and ground networks.
According to a joint announcement published by Telefónica, the two operators are collaborating with satellite provider Sateliot to test technology that enables standard mobile devices to connect directly to low Earth orbit satellites. The aim is to extend coverage to remote and underserved areas without requiring specialised handsets.
Telefónica, headquartered in Madrid, and Orange, based in Paris, are among Europe’s largest telecoms groups, serving hundreds of millions of customers across fixed and mobile networks. Sateliot operates a 5G-standard, non-terrestrial network (NTN) satellite constellation designed to integrate with terrestrial mobile infrastructure.
The companies said the trials will focus on validating interoperability between terrestrial networks and Sateliot’s satellite system, using existing spectrum and roaming agreements. The initiative builds on growing industry interest in non-terrestrial networks as defined under 3GPP standards, which enable satellites to operate as extensions of mobile networks rather than parallel systems.
The announcement comes as global operators and satellite start-ups race to commercialise D2D services, particularly for emergency messaging, IoT connectivity and rural coverage.
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Why it’s important
The trials represent more than a technical experiment. They signal that incumbent European operators are formally embracing space-based infrastructure as part of their long-term network strategy.
Direct-to-device connectivity could allow operators to close coverage gaps without the capital intensity of building towers in sparsely populated regions. For investors, hybrid networks may offer incremental revenue opportunities from IoT and enterprise services, though monetisation models remain unproven.
By using standardised 5G NTN specifications, Telefónica and Orange are positioning themselves within a broader ecosystem rather than pursuing proprietary solutions. This could reduce fragmentation and accelerate commercial deployment.
Strategically, the move also reflects competitive pressure. As satellite-native players seek partnerships with mobile operators worldwide, European incumbents appear determined to retain control of customer relationships and spectrum assets.
If successful, the trials could mark a turning point in Europe’s telecoms market, where terrestrial and satellite systems converge into a single, interoperable communications layer.
