The Federal Communications Commission (FCC) has approved new regulatory frameworks that permit satellite operators to use higher power levels for direct-to-cell services. The policy change, announced as part of a year-end review, is designed to significantly enhance the reliability and capacity of satellite-to-smartphone connections, addressing long-standing technical hurdles.
This move is part of a broader effort by the agency to streamline its processes for the rapidly expanding commercial space sector. The FCC's Space Bureau reported processing 3,418 applications during its recent "Space Month" initiatives, marking a 21 percent increase from the previous year and signaling a surge in industry activity.
Key Takeaways
- The FCC has increased power limits for satellite operators to improve direct-to-cell (D2C) services.
- Legacy rules known as Equivalent Power Flux Density (EPFD) limits have been modernized to allow for more intensive spectrum use.
- The commission is preparing nearly 20,000 megahertz of Mobile-Satellite Service (MSS) spectrum for satellite broadband.
- The policy changes come amid major industry consolidation, including the $3.1 billion SES acquisition of Intelsat.
- Operators like SpaceX and AST SpaceMobile are poised to benefit from the updated regulatory environment as they expand their constellations.
Revising the Technical Rulebook
A central element of the FCC's new policy is the modification of Equivalent Power Flux Density (EPFD) limits. These regulations were originally created to prevent interference between newer low Earth orbit (LEO) satellite systems and established geostationary (GEO) satellites that operate in fixed positions much farther from Earth.
While essential for maintaining order in orbit, these older rules were not designed for the dense, next-generation mega-constellations now being deployed. By updating these constraints, the FCC aims to allow for more efficient and intensive use of available spectrum.
A Capacity Game-Changer
According to the FCC, modernizing the EPFD limits could increase satellite broadband capacity by as much as 180 percent. This significant boost is crucial for delivering reliable direct-to-cell services that can compete with terrestrial networks, especially in remote and underserved areas.
FCC Chairman Brendan Carr confirmed the adoption of the new frameworks on Tuesday, December 23, framing it as a necessary step to unlock the full potential of satellite-based communications. The goal is to improve the technical link budget, which is the calculation of all gains and losses in a communication system, ensuring a stronger and more stable connection between a satellite and a standard smartphone on the ground.
Unlocking a Vast Swath of Spectrum
Alongside the power limit adjustments, the FCC has also taken steps to harmonize rules governing the Mobile-Satellite Service (MSS) spectrum. This initiative is set to make nearly 20,000 megahertz of bandwidth available for satellite broadband services.
This allocation provides the necessary radio frequency real estate for operators to expand their services without causing undue interference. It is a critical enabler for companies building out extensive networks designed for global coverage.
What is Direct-to-Cell?
Direct-to-cell (D2C) or direct-to-device technology allows standard, unmodified mobile phones to connect directly to satellites in low Earth orbit. This eliminates the need for specialized satellite phones or ground terminals, promising to provide connectivity for text, voice, and data in areas with no cellular coverage.
This regulatory shift directly supports the ambitious plans of operators like SpaceX. The company recently filed an application to expand its Starlink constellation with an additional 15,000 satellites in very low Earth orbit (VLEO), specifically to provide ubiquitous D2C connectivity. The availability of harmonized spectrum is fundamental to the viability of such large-scale deployments.
A Reshaped Competitive Landscape
The FCC's policy updates arrive during a period of intense activity and transformation within the satellite industry. Major players are not only deploying new technology but also consolidating to build scale and capability.
Key Industry Developments
- Market Consolidation: The landmark $3.1 billion merger between SES and Intelsat was finalized in July 2025. The deal created a multi-orbit giant with a combined fleet of approximately 120 satellites in both GEO and medium Earth orbit (MEO) and a combined pro forma revenue of €3.7 billion.
- Deployment Milestones: On December 23, AST SpaceMobile successfully deployed its BlueBird 6 satellite. This is the company's first next-generation Block 2 spacecraft, featuring a large-scale commercial array designed for direct-to-smartphone service.
- Strategic Partnerships: In November 2025, Starlink secured a preferred provider agreement with Proximus Global. This partnership aims to interconnect European mobile network operators (MNOs) with Starlink's satellite-to-mobile services, extending their reach.
These developments underscore a clear industry trend: the future of global connectivity is increasingly reliant on integrated satellite and terrestrial networks. The FCC's new rules are designed to accelerate this integration.
"The regulatory friction that once defined the FCC’s interaction with the commercial space sector is being systematically stripped away. This is no longer an agency acting as a gatekeeper; it is positioning itself as a launchpad."
Looking Ahead to 2026
The FCC is not stopping with these recent updates. The agency has formally initiated a "Part 100" rulemaking process intended to completely overhaul its existing Part 25 framework for satellite licensing.
The current system is often described as a manual, "bespoke" process, where each application is handled on a case-by-case basis. This approach is becoming unsustainable given the sheer volume of applications for mega-constellations, which can involve tens of thousands of satellites.
The proposed Part 100 framework aims to create a modular, industrialized licensing model. Such a system would be better equipped to manage the scale and complexity of modern satellite networks, reducing delays and providing greater certainty for operators.
Further decisions are expected in the coming year regarding spectrum sharing protocols and the implementation of the "Build America" agenda. The commission will continue its coordination with the National Telecommunications and Information Administration (NTIA) to ensure that commercial expansion aligns with national security priorities.