The high-stakes regulatory battle over the future of the Direct-to-Device (D2D) and Supplemental Coverage from Space (SCS) markets has entered a new phase of entrenched resistance.
In a series of joint defensive maneuvers before the Federal Communications Commission (FCC), satellite titans SpaceX and Globalstar have demanded that the agency reject a petition for reconsideration filed by small-satellite operator Sateliot.
The filings follow a landmark April ruling by the FCC Space Bureau, which explicitly ordered satellite operators to stay in their lanes regarding mobile satellite services (MSS) frequency bands.
The D2D Land Grab and the Incumbent Defense
At the heart of the dispute is a fundamental clash over orbital resource management. The explosive growth of satellite-to-cellular connectivity—which aims to link standard smartphones directly to low-Earth orbit (LEO) constellations—requires premium, low-frequency radio spectrum. Because these frequencies are exceptionally scarce, established incumbents guard their licenses aggressively against newcomers who argue that modern technology allows for painless spectrum sharing.
Sateliot, an emerging provider of narrowband IoT connectivity, requested that the FCC reconsider its rigid licensing framework for D2D spectrum bands. The small-satellite operator claimed that the FCC’s 2019 Small Satellite Order, designed to streamline licensing for smaller space systems, should allow new players to share the constrained bands without triggering harmful interference.
SpaceX and Globalstar strongly rebuffed this premise. In their respective filings, the companies argued that the streamlined small-satellite framework was never intended to grant newcomers back-door access to exclusive spectrum blocks. Allowing uncoordinated, secondary operators to tap into these heavy-traffic bands, they warned, would undermine network reliability, diminish signal capacity, and directly compromise the long-term capital investments made by primary licensees.
A Complicated Web of Rivalries
The alignment of SpaceX and Globalstar is a striking tactical alliance, given that the two companies are fierce rivals in the broader D2D marketplace.
THE D2D LANDSCAPE: SPECTRUM ALLOCATIONS & PARTNERSHIPS
+-------------------+--------------------+------------------------+
| Operator | Spectrum Band | Primary Terrestrial |
| | | Partner |
+-------------------+--------------------+------------------------+
| Globalstar | 1.6 / 2.4 GHz | Apple |
| (Amazon-backed) | "Big LEO" Band | |
+-------------------+--------------------+------------------------+
| SpaceX | 2.0 GHz | T-Mobile |
| (Starlink) | (ex-EchoStar) | |
+-------------------+--------------------+------------------------+
Prior to this alliance, SpaceX had actively lobbied the FCC to let its Gen2 Starlink satellites operate within the very 1.6/2.4 GHz “Big LEO” bands managed exclusively by Globalstar. SpaceX had asserted that its advanced phased-array antennas and dynamic beam-scheduling software could safely coexist alongside Globalstar’s architecture. The FCC decisively dismissed that request, opting to preserve the regulatory certainty that protected Globalstar’s emergency messaging infrastructure for Apple iPhones.
Having been denied entry into Globalstar’s territory, SpaceX pivoted horizontally by acquiring a 30 MHz slice of the coveted 2 GHz spectrum block from EchoStar for its T-Mobile cellular partnership. With its own multi-billion-dollar D2D footprint now secured, SpaceX’s regulatory strategy has shifted cleanly from a spectrum disruptor to a protector of the status quo.
By pushing the FCC to deny Sateliot’s petition, SpaceX is actively defending the exclusivity of its newly acquired 2 GHz assets from outside dilution, while Globalstar continues to shield its 1.6/2.4 GHz band from any alternative users.
The Toll of Regulatory Certainty
The FCC’s consistent refusal to reopen established band plans underscores its current policy priority: fostering a robust, facilities-based D2D ecosystem by providing absolute regulatory predictability to the heavily capitalized frontrunners. FCC Chairman Brendan Carr has publicly targeted a framework that sustains at least three independent, major infrastructure facilities in the space-to-phone sector.
While this policy gives companies like SpaceX, AST SpaceMobile, and Globalstar the long-term confidence to launch massive, expensive satellite constellations, it simultaneously raises steep regulatory barriers for smaller or later-stage entrants. For companies whose business models depend heavily on gaining flexible access to shared global frequencies, the hardening of these spectrum walls makes funding, scaling, and securing launch paths an increasingly difficult operational challenge.
