Ofcom recently published a statement (09.12.25) enabling the deployment of satellite D2D services within mobile spectrum bands in the UK, a significant step forward for many industry sectors as the UK’s drive toward universal connectivity accelerates. Virgin Media O2 (VMO2) has also announced O2 Satellite, scheduled for launch in 2026, which aims to bring mobile coverage to some of the country’s hardest-to-reach “not-spots.” This development forms part of VMO2’s broader Mobile Transformation Plan and highlights the growing convergence of terrestrial and non-terrestrial networks (NTNs) in delivering near-universal connectivity.
But O2 is not alone in this race. Other UK Mobile Network Operators (MNOs) are also striking partnerships and testing new models for integrating satellite technology into their service portfolios – a sign that satellite–mobile collaboration is fast becoming a national trend rather than a single-operator initiative.
What is O2 Satellite likely to offer?
Although details are still emerging, O2 Satellite is expected to use Starlink’s Direct-to-Cell satellite network, enabling and data services directly to standard handsets, with no specialist equipment required. Voice and video calls will not initially be supported, as seen in Starlink’s partnerships elsewhere (such as with T-Mobile in the US and Spark NZ).
This service will complement, not replace, existing terrestrial 4G coverage, filling in gaps in remote or rural areas where base stations are impractical or economically unviable.
In other words, where fibre and masts can’t go, satellites will.
Across the industry, similar initiatives are underway:
- Vodafone was the first UK operator to partner with AST SpaceMobile, aiming to eliminate mobile “not-spots” by connecting devices directly to space-based networks using Vodafone’s own spectrum. Vodafone and AST have also formed a joint company to distribute AST SpaceMobile’s satellite services to European MNOs
- BT Group, meanwhile, has announced a partnership with Starlink to deliver reliable, high-speed, low-latency satellite broadband to BT and EE customers, initially focusing on enterprise and consumer broadband rather than direct-to-device
These developments reflect a wider shift toward hybrid terrestrial–non-terrestrial solutions that leverage different satellite constellations and technology generations.
Technology and spectrum context
Several questions remain open regarding NTN services:
- Coverage specifics: Which parts of the UK will benefit first?
- Services at launch: Will messaging come first, or full data connectivity?
- Technology generation: Starlink’s current Direct-to-Cell satellites operate using LTE (4G) technology; 5G NTN standards are still emerging and may follow later.
- Integration with satellite roadmaps: Starlink, AST SpaceMobile and other constellations continue to expand their fleets, with a growing proportion equipped for direct-to-cell communication.
Recent regulatory developments add to the momentum. Ofcom’s new authorisation framework now allows MNOs to partner with satellite operators to use licensed spectrum for satellite services – a global first that has effectively unlocked these collaborations.
Head of Policy and Regulation at Real Wireless, Dr Abhaya Sumanasena, notes:
“A satellite beam covers a large area, and only a few satellites are needed to ensure full UK coverage at any time. Of course this depends on many other parameters such as the beam size, antenna gain, transmitted power and the throughput. Some countries have established regulatory frameworks that allow for direct-to-cell services to use the spectrum used by MNOs. In Europe, Ofcom has led the way by introducing an authorising framework in the UK. This development is expected to encourage service providers to offer direct-to-device services in the country.”
The bigger picture: UK connectivity strategy
From a policy and infrastructure standpoint, these satellite partnerships represent a shift from coverage expansion through terrestrial means alone to a hybrid terrestrial-non-terrestrial model. We described different partnership models in our recent report on sharing between satellite and terrestrial networks in the future.
They align with national digital inclusion goals and demonstrate how public policy, spectrum regulation and commercial innovation can intersect to tackle persistent rural coverage gaps.
However, success will depend on:
- Performance: coverage, latency, throughput and reliability across different terrains.
- Integration: seamless handover between terrestrial and satellite connections.
- Affordability: ensuring satellite-enabled services don’t introduce new digital divides.
Our take
This new phase in connectivity, where terrestrial and non-terrestrial networks are beginning to converge, will create a more resilient and flexible communications ecosystem. Low Earth Orbit (LEO) constellations, high-altitude platforms and direct-to-device (D2D) links are not just for filling rural coverage gaps; they have the potential to become viable complements and in some cases, alternatives to conventional fixed and mobile broadband. Demonstrated by Virgin Media O2’s engagement with non-terrestrial partners, the Department for Transport’s £41 million investment in LEO-based train connectivity following successful trials, and ongoing research into D2D integration across public and private networks. Together, these efforts point to a hybrid connectivity model where space-based infrastructure is increasingly central to how the UK delivers digital inclusion, transport innovation and economic resilience.
But several questions remain:
- How will network handover be managed between terrestrial and satellite layers?
- What devices and network configurations will be supported?
- How will co-existence be managed in shared bands?
- What regulatory precedents does this set for future 5G NTN services?
Looking ahead
As more details become available, these factors will be of note:
- The evolution of Starlink’s Direct to Cell capabilities.
- Ofcom’s regulatory approach to NTN and terrestrial network collaboration.
- The role of satellite in the UK’s long-term connectivity and resilience strategies.
For now, VM O2’s announcement – alongside similar moves by other MNOs – represents a decisive move towards the next generation of ubiquitous connectivity, where satellites are no longer a separate system but an extension of the mobile network.
Real Wireless is closely engaged with the evolving NTN and D2D landscape. Our recent study for the UK Spectrum Policy Forum ‘Sharing between satellites and terrestrial mobile networks in the future’ undertaken by our Head of Policy and Regulation, Dr. Abhaya Sumanasena and 3GPP NTN standards expert Julius Robson, offers new insights into how satellite and mobile systems can effectively co-exist and complement one another, technically, commercially and from a policy perspective. Read a summary of our findings and download a copy of the report: Sharing between satellites and terrestrial mobile networks in the future – Real Wireless
As the UK moves toward a more integrated connectivity model, these insights will be critical for operators, regulators, and policymakers alike in shaping how terrestrial and space-based networks together deliver seamless, inclusive, and resilient connectivity for the future.
