OQ Technology and Telefónica Germany are preparing to test two-way satellite communications directly to standard smartphones, in a development that highlights the growing global race to extend mobile coverage from space.
The live demonstration, planned for Mecklenburg-Western Pomerania in Germany, will assess whether low Earth orbit (LEO) satellites can be integrated with existing mobile networks to support messaging and voice-based services directly to consumer handsets.
The trial will use unmodified smartphones, including iPhone, Samsung and Google devices, with OQ Technology’s next-generation satellites and in-house developed multi-band direct-to-device (D2D) payload technology operating on terrestrial mobile spectrum provided by Telefónica Germany.
Australian Perspective
In Australia, Telstra has already launched satellite-to-mobile text messaging using Starlink Direct to Cell, initially focused on basic texting when its mobile network is unavailable. Optus is also working with SpaceX (NASDAQ:SPCX) on direct-to-mobile satellite connectivity, beginning with text messaging before planned voice and basic data services.
The German demonstration therefore points to a broader industry shift: mobile networks are no longer being built only from towers on the ground. Increasingly, telcos are looking to combine terrestrial infrastructure, licensed spectrum and LEO satellites to extend coverage into areas where building new towers is costly, impractical or commercially difficult.
Why the European trial matters
The OQ Technology and Telefónica Germany project is notable because it uses a European-operated, standards-based and spectrum-controlled model.
Under the agreement, OQ Technology will use its own satellites and multi-band D2D payload technology, while Telefónica Germany will provide terrestrial mobile spectrum. The aim is to validate direct-to-smartphone connectivity without requiring users to buy satellite phones, external antennas or modified devices.
OQ Technology’s payload is based on 3GPP standards and supports MSS S-band, C-band and IMT bands. The company said this positions it as the first European company preparing missions across the 3 major D2D spectrum bands for direct smartphone connectivity.
That matters because spectrum is becoming one of the most important issues in satellite-to-mobile services. Direct-to-device systems need to work with mobile network operators, regulators and existing spectrum users to avoid interference and ensure services can be integrated into national mobile networks.
In Australia, the Australian Communications and Media Authority has confirmed that IMT-based satellite direct-to-mobile services can operate under Australia-wide spectrum licences without further ACMA approval. That means licensed mobile operators are likely to remain central to how satellite-to-phone services are deployed locally.
Australia’s coverage challenge
For Australia, the attraction of satellite-to-smartphone services is clear.
Conventional mobile networks remain the backbone of national connectivity, but they are expensive to extend across remote highways, pastoral regions, offshore areas, national parks and sparsely populated communities.
That creates a coverage gap that has long been filled by satellite phones, emergency beacons and specialised equipment. Direct-to-device satellite services aim to make at least some of that functionality available through regular smartphones.
Early services are expected to remain limited. Text messaging is the first practical use case, while voice and basic data will depend on satellite capacity, compatible handsets, network integration and regulatory settings.
Even so, the potential benefits are significant. A basic text message from beyond mobile coverage could help a stranded driver, a bushwalker, a farmer, a regional worker or a remote community during an outage.
For telecommunications providers, satellite-to-mobile also offers a way to expand geographic coverage without replicating the economics of tower-based networks in very low-density areas.
Executive comments
OQ Technology founder and CEO Omar Qaise said Europe needed to develop its own sovereign and interoperable space-based mobile infrastructure.
“This collaboration with Telefónica Germany demonstrates that European operators and European satellite companies can jointly build next-generation connectivity solutions based on open standards, licensed spectrum and existing smartphones,” Qaise said.
“Our D2D satellite network is designed to seamlessly complement terrestrial mobile networks, extending coverage where it is most needed while preserving terrestrial mobile operator control and their spectrum sovereignty.”
Telefónica Germany chief partner and wholesale officer Jörg Kablitz said the project was an important step for Germany’s digital infrastructure.
“We are testing mobile communications connections directly between satellites and conventional smartphones – using a European technology approach and with the aim of strengthening Europe’s digital sovereignty,” Kablitz said.
“The satellite-based service is intended to supplement existing mobile networks — in areas where expanding infrastructure on the ground would be extremely costly or impossible.”
Hybrid networks take shape
The planned demonstration will focus on validating the interaction between terrestrial mobile infrastructure and OQ’s LEO satellite network.
Key areas of assessment will include achievable data performance, spectrum coexistence and direct-to-device communications in regions where terrestrial network expansion remains challenging.
OQ Technology operates a dedicated LEO constellation for D2D and Internet of Things non-terrestrial network services. It develops 3GPP-based satellite connectivity systems designed to enable direct communications with unmodified smartphones and IoT devices.
The company has already demonstrated D2D connectivity using MSS S-band spectrum and is expanding its multi-band satellite roadmap across MSS S-band, C-band and IMT spectrum.
OQ said its next-generation satellites and payloads are fully designed and developed in-house, supporting faster innovation cycles and operator-led deployment models using both satellite and terrestrial mobile spectrum.
The Telefónica Germany collaboration also builds on existing work between the companies in IoT satellite connectivity, where OQ Technology’s NTN infrastructure supports global monitoring and communications for enterprise applications.
A glimpse of 6G-era coverage
The project comes as non-terrestrial network technologies gain momentum in 3GPP standardisation and future 6G planning.
While the first wave of satellite-to-mobile services is focused on text messaging and low-bandwidth applications, the longer-term ambition is broader: mobile networks that can move more seamlessly between towers and satellites, depending on where a user is located.
The technology is still in its early stages, and users should not expect satellite-to-smartphone services to replace terrestrial mobile networks. Capacity, latency, device compatibility and indoor performance remain important limitations.
However, the direction of travel is clear. The mobile network of the future is likely to be hybrid, with terrestrial towers doing the heavy lifting and satellites filling the gaps.