Australia - Direct‑to‑Cell (D2D): How to Blend NTN With Your Terrestrial Network

Executive summary

Satellite‑to‑mobile (D2D) has crossed the line from press releases to real usage in Australia. Telstra now offers satellite texting via Starlink Direct‑to‑Cell on compatible handsets, after extensive trials (tens of thousands of messages). Optusremains publicly partnered with SpaceX, though timelines have shifted. Enterprises and public safety agencies can now treat D2D as a policy‑driven fallback for people and assets beyond terrestrial reach—or when bushfires, floods, or power cuts take towers down.

What D2D is (and isn’t) in 2025

• Now: Intermittent text messaging in most outdoor areas beyond the mobile footprint using compatible devices; not for emergency call or mass alerting; expect minutes‑long delivery variability.

• Next: Progressive enablement of voice/data as satellites, spectrum and device stacks mature.

• Device model: Works on mainstream phones (selected iPhone/Android models) with over‑the‑air enablement; no specialised satellite handset required.

Board translation: Treat D2D as a resilience and reach overlay - not a substitute for terrestrial connectivity.

Where D2D belongs in your operating model

1. Coverage filler. Rural dead zones, coastal corridors, maritime and remote highways—without new macro sites.

2. Continuity layer. “Last resort” comms when terrestrial cells or backhaul are down (disaster response, field force safety).

3. IoT tele‑reach. Standards‑aligned LTE waveforms can support basic telemetry from remote sensors once data opens - think pumps, meters, environmental monitors, isolated SCADA “pings”.

4. Tourism & recreation. Bushwalking, 4×4, boating - low‑ARPU but high societal value segments.

Risks, constraints and policy choices

• Emergency services: Today’s D2D text cannot originate 000; it is not an emergency alert channel. Publish clear guidance; explore roaming agreements for cross‑jurisdictional emergency response in future phases.

• Intermittency & UX: Manage expectations: satellite passes create bursty delivery. Provide UI hints (“connecting to satellite…”) and auto‑retry logic.

• Spectrum & interference: Coordinate with regulators for handset emissions, guard bands, and coexistence with terrestrial cells at the band edges.

• ARPU cannibalisation: Keep D2D as fallback by design; geofence and policy‑gate to prevent use where terrestrial service is adequate.

• Privacy & security: Ensure end‑to‑end encryption is unchanged; clarify data residency and lawful intercept responsibilities when traffic uplinks directly to satellites.

Commercial models that work

• Add‑on (best). A low‑friction add‑on across consumer/SMB plans (“included” texts when off‑grid).

• Segmented bundles. Maritime, agriculture, mining, utilities—priced with device lists and policy sets.

• Public safety packs. Ruggedised devices + D2D + priority messaging profile + training.

• Roaming reciprocity. Exploit Starlink’s partner ecosystem for cross‑border service (NZ, JP, NA).

Device and network roadmap

• Device certification. Maintain a public list of tested models; push firmware that exposes satellite status and power‑save rules.

• Policy engine. SIM‑policy that prefers terrestrial, falls back to D2D by location and RF conditions; suppresses OTT background chatter while on satellite.

• Billing & mediation. Tag satellite sessions distinctly; clear CDRs for charging/analytics without customer bill‑shock.

• Support playbooks. Train front‑line staff on satellite UX (“why did my text take 8 minutes?”) and safe‑use briefings for remote workers.

Enterprise adoption patterns (12–18 months)

• Field safety standard. All lone‑workers issued compatible phones with D2D enabled; weekly test routine; supervisor dashboards.

• Remote asset kits. D2D‑ready IoT gateways for periodic telemetry; store‑and‑forward buffers; alerts on missed heartbeats.

• Insurance angle. Engage insurers to price risk credits for D2D‑equipped fleets and staff.

• BCP/DR. Bake D2D into crisis comms SOPs with incident‑level scripts and channel hierarchies.

Board actions this quarter

1. Approve a D2D tariff & policy framework (fallback only; define edge cases).

2. Fund a public‑safety pilot with state agencies ahead of fire season.

3. Publish a device roadmap and compatibility matrix.

4. Update BCP to mandate D2D for designated staff and remote contractors.

5. Advance roaming MOUs to exploit the global partner network.

Board conclusion

D2D is resilience insurance with upside. Establish policy and product guardrails now so it complements - not cannibalises - your terrestrial network, and make it a visible safety feature for staff and customers.