And 60% would be willing to pay more for direct-to-device satellite services according to report commissioned by Viasat which surveyed more than 12,000 smartphone users globally
Satellite communications company Viasat has published the results of a report it commissioned which reveals the rising demand for direct-to-device (D2D) satellite connectivity. This could open new revenue streams for mobile network operators as well as a number of challenges.
The Great Connectivity Convergence: NTN in Consumer Mobile was conducted by GSMA Intelligence and surveyed more than 12,000 mobile phone users across 12 markets. The report asked customers about satellite services as complements to terrestrial mobile networks to extend network coverage and deliver reliable service in hard-to-reach areas.
Best effort not good enough
The results found, on average, that more than a third of consumers report losing access to basic mobile services at least twice a month. Not surprisingly, more than 60% of respondents said they are prepared to pay extra for satellite-enabled services on their smartphones, although appetite varies by market.
High-growth regions like India (89%) and Indonesia (82%) were more willing to pay than those in more developed economies such as the US (56%) and France (48%).
Let’s pause there: those last two numbers are still really big: the opportunity that the mobile industry is not talking about enough is that people are super frustrated with the ‘best effort’ service we still get when what we all want is for our phones to work wherever we are, 24×7.
It is often impossible to get online, for example, at London’s major transport hubs such as Waterloo Station (check out FibreCity’s CTO David Tomalin talking about this) or Kings Cross (pictured), or most airports – although this is not what the report – or the industry – usually means by hard to reach places. The publicity shot for this report is a man standing on the side of a mountain, not on Euston Road in London: why aren’t we talking about D2D complementing the terrestrial infrastructure as required?
Rising demand and revenue potential
Back to Viasat’s survey: enthusiasm translates into revenue potential for telco providers. On average respondents who said they are willing to pay more stated they’d be happy to spend 5-7% more per month. Of all countries surveyed, India presents a particularly compelling case: with an average willingness-to-pay of 9% more on current monthly spend.
According to the report, despite a lower ARPU of $2.35 in India – in contrast with the US’ $45.57 –this is a crucial opportunity for mobile operators, taking into account the scale of the market and population: India currently has about 735 million smartphone users.
Andy Kessler, Vice President Viasat Enterprise, said, “This data highlights frustration with mobile blackspots and shows that consumers are willing to pay or even switch providers for reliable coverage. This means the industry is reaching an inflection point – [mobile operators] need to move fast to harness the excitement over satellite services to secure loyalty and generate revenue.
“This is about more than providing a feature upgrade – it can be an essential tool for digital inclusion, safety, and economic growth. We’re excited to be forging partnerships within the ecosystem to help make it a reality for millions more users.”
