Amazon Leo Wins FCC Approval for D2D Satellites

Amazon Leo has won Federal Communications Commission (FCC) approval to develop and deploy more than five thousand direct-to-device satellites. This decision aligns with an April 2026 FCC move to encourage the D2D market by clearing operating permits and establishing exclusive spectrum grants. Currently, there are eight active US companies specializing in D2D telecommunication satellites, and many are partnering with major telecommunications providers like AT&T and T-Mobile.

D2D technology allows satellites to connect directly to ordinary mobile phones through a network provider, extending coverage beyond terrestrial networks. It promises cost-effective connectivity for rural and remote communities and vital backup in disaster zones. Recent earthquakes in Venezuela and Colombia highlighted how damaged infrastructure complicates emergency coordination. US company Global Star provides D2D service for Apple's Emergency SOS, while Lynk Global operates a backup network in Guam and the Northern Mariana Islands.

The competitive stakes are high. American companies currently lead, owning 45.9 percent of global D2D connections. China is testing the technology and planning five major megaconstellations of ten thousand to over fifteen thousand satellites for deployment by 2035. Maintaining the US lead requires not just creating competitive systems but sending them into orbit at scale.

Deployment Capacity as a Strategic Constraint

The most immediate constraint is deployment capacity. At the 2023 World Satellite Business Week, SpaceX's dominance was described as a major chokepoint. Three years later, that warning looks prescient. Dependence on SpaceX has sparked concerns, as transporter reservations for its rockets are nearly fully booked through early 2029.

This issue goes beyond physical capacity. SpaceX is vertically integrated, manufacturing and deploying its own satellites. This gives it an incentive to limit competition. Already, 80 percent of SpaceX Falcon 9 missions have been devoted to building its own Starlink network. Demand for commercial deployment capacity is outstripping supply, potentially delaying D2D rollouts.

The State of Rocket Competition

Possible challengers to SpaceX include Rocket Lab and United Launch Alliance (ULA), a joint venture between Lockheed Martin and Boeing. Neither approaches SpaceX's scale. As of 2026, the SpaceX Falcon 9 has completed 660 missions. The competitors' records are far smaller.

Despite these successes, alternative providers do not offer enough capacity. Industry experts are tracking the anticipated deployment of 41,000 new satellites over the next eight years. A 2026 Commercial Space Federation report estimates the industry may need to send up to seven thousand satellites into space per year-a level the current market cannot satisfy.

Falcon 9's reusability drives down costs, making SpaceX the most financially viable option. As long as the deployment market remains concentrated in one company building its own competing constellation, emerging providers will face bottlenecks.

Seeking Solutions and Sovereignty

Addressing the deployment bottleneck requires a more competitive commercial space ecosystem. The source suggests satellite companies should pursue more joint ventures with rocket deployment providers to better integrate manufacturing and deployment capacity. A 2025 joint venture between Thales Alenia Space, Airbus, and Leonardo covered workforce and services, but not deployment.

D2D companies are also advised to diversify their deployment providers. Khalid Al Naqbi, vice president of product and engineering at UAE state-backed Space42, emphasizes evaluating providers on mission assurance, reliability, schedule, cost, and overall risk. He stated that the focus is always the technology itself, evaluating proven performance, reliability, and heritage because the objective is to reduce technical, schedule, and financial risk.

Another competitive angle is offering sovereignty-friendly services. Bolivia pushed back on Starlink's entry over sovereignty concerns, and the European Commission is pushing to buy more European space infrastructure. In September 2025, Space42 and Viasat announced plans to form Equatys, a sovereignty-friendly D2D venture committing to national spectrum allocation and a shared infrastructure model. Luxembourg's SES is partnering with Lynk Global, and AST SpaceMobile is collaborating with Britain's Vodafone to expand D2D services in Europe.

FCC approval alone will not get thousands of D2D satellites into orbit. Without a sturdy deployment supply chain, US D2D companies risk delays that could slow the sector's expansion and weaken US commercial space leadership, according to the Atlantic Council's GeoTech Center.