This is increasingly an area of rivalry between mobile networks operators and the owners of satellite constellations – but not likely to drive stellar telecoms growth in Europe
Vodafone Group says it has “made the world’s first space video call using normal 4G/5G smartphones and satellites,” using one of AST SpaceMobile’s low-Earth orbit (LEO) satellites.
The video call was made by Rowan Chesmer, an engineer at Vodafone, from a mountainous location in mid-Wales where there is no terrestrial mobile network coverage. The call was routed via an AST Bluebird satellite then sent back to Earth via a “space-to-land” gateway or dish (pictured) which is connected to Vodafone’s mobile core.
The core platform routed the video call to the standard Pixel smartphone owned by Vodafone Group’s CEO, Margherita Della Valle, in the presence of British astronaut Tim Peake.
Vodafone has a 4.6% holding in SpaceMobile worth with a worth estimated at €285 million last November. The operator group has invested $60 million (€57.6 million) in total in AST, in three tranches, since 2018. In December 2024, the two entered into a definitive long-term commercial agreement that will run to the end of 2034
Surprising focus on Europe
In a press statement, Della Valle remarked, “Vodafone’s job is to get everyone connected, no matter where they are. Our advanced European 5G network will now be complemented with cutting-edge satellite technology. We are bringing customers the best network and connecting people who have never had access to mobile communications before.
“This will help to close the digital divide, supporting people from all corners of Europe to keep in touch with family and friends, or work, as well as ensuring reliable rural connectivity in an emergency.” Somewhat curiously, she didn’t mention the potential of direct-to-smartphone/cell/device services for Africa, where Vodafone has a large footprint.
Industry analyst Kester Mann, Director of Consumer and Connectivity at research firm CCS Insight, commented, “Although exciting, the opportunity for satellite services in Europe is less clear-cut than in other regions. This is main due to the already strong mobile and fibre coverage, meaning that the technology will likely only ever fulfil a complementary role for operators. Places like Africa, Australia, and India offer greater potential, either in connecting people for the first time or for people travelling through or into their vast areas that lack terrestrial coverage.”
Still, Mann acknowledged, “This is a significant milestone for the burgeoning and increasingly competitive satellite communications sector which has so far mostly focused on person-to-person and emergency messaging. Using ‘normal’ smartphones has a clear advantage in that there is a large existing market for operators like Vodafone to go after. CCS Insight’s research shows that there are more than 1 billion smartphones in use in the region that could already work with the technology.“
Pricing will be the key
Vodafone said it plans to offer “the first commercial direct-to-smartphone broadband satellite service in Europe from later in 2025 and 2026″. Mann noted, “Offering a commercial service as soon as later this year is ahead of many people’s expectations. However, no details have been shared about pricing, which will be the main driver of take-up. Encouragingly, recent research from CCS Insight shows that almost half of UK consumers could be willing to pay to make and receive voice calls or access the Internet over satellite.“