This insight explores the key regulatory challenges associated with the growth of satellite connectivity, focusing on spectrum licensing, assignment, pricing and competitive neutrality. Existing regulatory frameworks were largely designed around nationally licensed terrestrial mobile networks operating within defined geographic borders. By contrast, modern satellite systems are inherently global, with footprints that cross national boundaries and increasingly compete directly with mobile network operators (MNOs). As the performance gap between terrestrial and satellite services narrows, regulators must reconsider long-standing assumptions regarding licensing structures, spectrum rights, market access and consumer protection.

A central theme of the paper is the convergence of terrestrial and satellite technologies, particularly through D2D services using mobile spectrum bands traditionally reserved for terrestrial operators. This creates new challenges around interference management, cross-border coordination, lawful intercept, data sovereignty and the coexistence of satellite and terrestrial systems within shared spectrum environments. The paper highlights how existing frameworks are often poorly equipped to manage services that operate seamlessly across jurisdictions and outside traditional national infrastructure models.

The paper also examines the growing debate around the “level playing field” between satellite operators and terrestrial MNOs. Terrestrial operators are typically subject to extensive regulatory obligations, including coverage commitments, quality of service standards and universal service contributions. If global satellite providers are permitted to offer equivalent services without comparable obligations or spectrum costs, significant competitive asymmetries may emerge, potentially undermining investment incentives in terrestrial infrastructure—particularly in developing markets where mobile networks remain the backbone of digital inclusion.

Spectrum assignment and pricing emerge as particularly complex policy areas. Traditional national assignment models, including auctions, may not translate effectively to globally operated satellite systems whose economics are driven by constellation-wide scale rather than individual national markets. The paper outlines the need for new frameworks grounded in principles of opportunity cost, competitive neutrality, proportionality and transparency, while recognising the distinct technical and commercial characteristics of satellite services.

The analysis further reviews emerging regulatory approaches in markets such as the United States, the United Kingdom and the European Union, illustrating the growing divergence in national policy responses. It argues that regional coordination and internationally aligned regulatory frameworks will become increasingly important as D2D satellite services expand across borders.

Ultimately, this insight argues that regulators face a critical balancing act: enabling innovation and expanding connectivity opportunities while preserving sustainable investment incentives and competitive fairness within national telecoms markets. The decisions made over the coming years – including those linked to WRC-27 – will shape the future relationship between satellite and terrestrial communications for decades to come.

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