Most punters would pay more for satellite services, claims survey

A report by satellite firm Viasat claims 60% of customers would pay more for direct-to-device satellite services.

The report was conducted by GSMA Intelligence and surveyed more than 12,000 mobile phone users across 12 markets, quizzing them about their views towards satellite services.

The report claims that more than a third of consumers reported losing access to basic mobile cellular services at least twice a month, and “perhaps as a result, more than 60% of consumers globally are prepared to pay extra for satellite-enabled services on their smartphones.”

This enthusiasm varied geographically – places like India (89%) and Indonesia (82%) were more willing to pay up than those in countries such as the US (56%) and France (48%). 

This, asserts the report, means revenue potential for telcos. Those consumers who are willing to cough up for access to satellite connectivity on average would be happy to spend 5-7% more on their current phone bill per month. In India respondents were willing to pay 9% more on current monthly spend.  

The report states: “When taking into account lager population sizes and higher willingness to pay, lower-ARPU markets represent substantial growth opportunities if commercial strategies are tailored effectively.”

The report further asserts that telcos that do not opt to offer satellite services “could face risk of market share erosion,” since 47% of the respondents said they would jump ship to a different operator if outdoor smartphone services in areas outside coverage were included in their subscription.

“This data highlights frustration with mobile blackspots and shows that consumers are willing to pay or even switch providers for reliable coverage,” said, Vice President Viasat Enterprise. “This means the industry is reaching an inflection point – MNOs 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.” 

The Head of Research & Consulting, GSMA Intelligence added: “Six in ten say they’re willing to pay extra for D2D services, and nearly half would switch provider to get them, a decisive signal of demand and a clear revenue runway for operators. With satellite services aligned to 3GPP standards and moving from trials to commercial reality, the race is on to deliver D2D at scale, first messaging and voice, then data – so operators can differentiate on reach, resilience and customer trust.”