US Carriers Oppose Starlink Spectrum Expansion as Satellite Direct-to-Device Services Launch in Brazil

As rumors of SpaceX's Starlink building its own terrestrial mobile network in the US intensify, traditional telecom operators are ramping up regulatory pushback. According to ZDNet Korea, Verizon, AT&T, and T-Mobile have jointly submitted comments to the US Federal Communications Commission (FCC), demanding a review of plans to expand frequencies for satellite direct-to-device (D2D) communications. They argue that the 2.5GHz and 3.45GHz bands, critical for 5G services, should be excluded from D2D regulations. T-Mobile warned that interference between satellite and terrestrial signals could result in up to 96% loss of base station uplink coverage.

Simultaneously, the cost barriers to market entry have been quantified by incumbents. Dan Schulman, CEO of Verizon, estimated that for Starlink to build an independent nationwide mobile network, it would take at least 4 to 6 years and require an investment of $300 billion to $500 billion over the next 7 to 8 years. He noted that beyond base stations, backhaul networks, and Radio Access Network (RAN) equipment, new entrants must also bear the costs of spectrum acquisition, user management, and billing systems, expressing skepticism about MVNO partnerships with satellite operators.

Despite regulatory friction in the US, commercialization is accelerating globally. In Brazil, the largest mobile operator Vivo launched 'Vivo Satélite', a satellite direct-to-device service in partnership with Starlink on October 26. The service covers approximately 50 million users, offering SMS, maps, and app-based communication in dead zones, with the first 12 months free for individual customers. On the same day, competitor AST SpaceMobile announced it had secured usage approval from Brazilian regulator Anatel for S-band 30MHz and up to 20MHz in the 700MHz band, planning to collaborate with four local operators and build four ground gateways.