AT&T is adding Amazon Leo to its enterprise connectivity mix as satellite moves deeper into terrestrial networks – and European operators eye D2D spectrum and US regulators push to expand satellite capacity and use cases.
In sum – what to know:
The LEO layer – AT&T will offer Amazon Leo alongside fiber and 5G for enterprise connectivity, using satellite for remote sites, field operations, and resilience (rather than direct-to-smartphone D2D).
EU D2D stake – Deutsche Telekom, Orange, Telefónica, and Vodafone are reportedly discussing a joint bid for EU-controlled satellite spectrum, potentially giving them control in the D2D space.
US spectrum tap – The FCC is pursuing more than 1,000MHz for satellite broadband and other space connectivity, while proposing unlicensed satellite comms to broaden D2D beyond smartphones.
AT&T Business says it is the first US telco to offer Amazon Leo’s satellite broadband service. The pair have a deal (a “strategic agreement”), which effectively formalizes AT&T as a distribution channel for Amazon’s low-Earth orbit system, to bring satellite broadband to enterprise customers in the US. AT&T plans to offer LEO connectivity as part of a converged “business-grade” offer, also including its standard fiber and 5G services. It cited “growing customer demand for solutions that extend beyond any single-access technology”.
Note, this is not a direct-to-device (D2D) mobility service – so hyped because of Starlink. Instead, Amazon’s Leo service is a satellite-to-terminal/site system (like Starlink’s satellite broadband product) to supplement conventional fixed or fixed-wireless access. It is geared for remote sites, vehicles, field operations, and backups – versus the kind of AT&T-killer satellite-to-smartphone D2D product the market thinks (!) Elon Musk has up his sleeves with Starlink Mobile, or which AT&T and other telcos are offering in a less contested manner via AST SpaceMobile.
As covered further below, and as related to potential Starlink disruption of terrestrial carrier services, and also to the wider conversations around geopolitics and tech sovereignty, European operators are reportedly weighing a joint bid to keep D2D spectrum under operator control.
Nevertheless, the AT&T tie-up is part of Amazon’s effort to catch up with Starlink, which has a substantial lead. Starlink had about 12 million direct subscribers at the end of June, and more than 11,000 satellites by late summer. Its connectivity business generated $4.3 billion in Q2 revenue, including $2.5 billion from consumers and $1.8 billion from enterprise and government customers. The latter figure includes revenue from Starlink Mobile, its D2D service, which is being rolled out via carriers including Deutsche Telekom, NTT Docomo, Softbank, T-Mobile, and others.
By contrast, Amazon has 392 Leo/LEO satellites, apparently, of which only 315 are considered to be in the “proper operational orbit” – according to the MarketWatch report, which attributes the figures to astronomer Jonathan McDowell. However, Amazon has regulatory approval for 3,232 satellites to support its main broadband service, plus approval for another 4,504 satellites to expand its constellation further. It has separately asked the FCC for permission to deploy up to 5,105 additional satellites specifically for D2D.
Amazon has a broadband deal with Vodafone, as well – to extend its coverage across Europe and Africa. It also has deals with DIRECTV in Latin America, NBN Co in Australia, and Herotel in South Africa, plus with JetBlue and Delta as airline customers. It is targeting a commercial launch in 2026, with availability expanding with its LEO rollout. Delta will launch LEO-based Wi-FI in 2028. Amazon’s D2D system is not due to begin deployment until 2028. The most interesting aspect of the AT&T tie-up is the convergence play to make the satellite layer invisible to customers.
AT&T said its “unified architecture” enables customers to “leverage the right connectivity option” via a “single provider and experience”. Enterprises will integrate satellite connectivity into their IT and network environments. AT&T has done “extensive technical validation”, it said, and plans a “structured, phased deployment”. Amazon’s services arm AWS adds the cloud layer to the proposition, with AT&T describing the resulting offer as “business-grade managed services powered by AWS”.
Shawn Hakl, senior vice president and head of product at AT&T Business, said: “Enterprise and public sector customers need a connectivity platform that delivers greater reliability. AT&T is uniquely positioned to provide that reliability by bringing together three critical network layers – fiber, 5G, and LEO satellite – into a single managed architecture. While others offer individual connectivity products, AT&T Business delivers a seamless experience to keep customers connected, protected, and operational… That is a meaningful distinction in the industry.”
Meanwhile: Reuters (via Bloomberg, behind a paywall) reported yesterday that Deutsche Telekom, Orange, Telefonica, and Vodafone are in early talks to create a consortium for European Union satellite spectrum and D2D services. The report said no final decision has been made, and the bid would target spectrum the EU has proposed reserving for a local operator.
Meanwhile: Reuters (via Bloomberg, behind a paywall) reported yesterday that Deutsche Telekom, Orange, Telefonica, and Vodafone are in early talks to create a consortium to buy EU satellite spectrum and potentially launch joint D2D services or carrier-gated access to local satellite spectrum. The bid would target the EU-controlled portion of the 2 GHz mobile-satellite spectrum (MSS) band that Brussels plans to allocate for commercial D2D services The implication is the quartet could build a European-controlled D2D proposition rather than rely on US providers.
A final decision has not been made by the four operators, said the report. But the move aligns with Brussels’ push for European “sovereign” satellite capabilities and could create a home-grown rival to Starlink in D2D. The mooted spectrum deal is distinct from the portion of the 2 GHz resource reserved for the IRIS² project, the EU-backed satellite constellation being developed by the SpaceRISE consortium. As above, the thinking is to control access to the MSS spectrum to use with a D2D satellite network – so spectrum sovereignty first, satellite infrastructure second.
Also, back in the US: the FCC said it is pursuing a broad “spectrum abundance” agenda for satellite comms, including more than 1,000MHz of additional spectrum in the 12.7GHz and 42GHz bands for satellite broadband, in-flight, and maritime connectivity, and satellite ground-network traffic routing. It is also seeking comment on freeing up a further 1,450MHz in Ku- and Ka-band spectrum and 138.25GHz in the D-band for more intensive satellite communications and space operations.
It is also proposing to let unlicensed devices communicate directly with satellites using more than 200 MHz currently available to unlicensed devices on a non-interference basis. Which could allow a wider range of ordinary Part 15 devices – including IoT and other enterprise devices – to communicate via satellite without requiring individual spectrum licences. The strategy is to expand the D2D market beyond Starlink-style services, and to lower the barrier to experimentation to create new capacity and use cases for satellite IoT and other services. But it is early – as a ‘notice of proposed rulemaking’, with comments by November 9 and replies by December 7.
