Recent analyses, including a report commissioned by the Wireless Infrastructure Association (WIA) and a separate independent study, have firmly concluded that satellite direct-to-device (D2D) service cannot serve as a broad replacement for terrestrial cell towers. This finding comes as the federal government's $42.45 billion Broadband Equity, Access, and Deployment (BEAD) program is significantly reducing funding for satellite internet providers, pulling back roughly half the broadband locations initially awarded.
This shift underscores the enduring importance of ground-based wireless infrastructure. For tower climbers, crew leads, and safety managers, these developments reinforce the continued demand for skilled labor in building and maintaining the robust terrestrial networks that are indispensable for reliable communication and data transfer across the United States.
Satellite Limitations: Technical and Economic Realities
The independent report, "Satellite Direct-to-Device: A Supplement for Terrestrial Cell Coverage" by Tim Farrar of TMF Associates, highlights several critical limitations of current satellite D2D technology:
- Low Usage and Speed: As of May 2026, satellite usage accounted for a mere 0.0002 percent of T-Mobile's total network traffic. Despite 150,000 daily users of its Starlink-powered T-Satellite service in January 2026, this translates to only about 2 megabytes of data per user per day. In stark contrast, the average terrestrial mobile connection consumes over 600 megabytes daily.
- Bandwidth Constraints: Current Starlink D2D speeds generally run below 1 Mbps download, significantly slower than average terrestrial mobile download speeds in the U.S., which ranged from 73.8 to 184.7 Mbps in fall 2025. This is largely due to satellite D2D service utilizing a single paired 5 MHz spectrum block, a fraction of the hundreds of megahertz mobile operators deploy terrestrially.
- Physics of Distance: Satellites orbit hundreds of miles above Earth, compared to terrestrial towers that are typically just a few miles from a handset. Signal power diminishes with the square of distance, meaning a satellite 100 times farther away produces a signal roughly 10,000 times weaker than a cell tower. This fundamental physics makes it challenging for satellites to deliver comparable service.
- Indoor and In-Vehicle Penetration: The Mobile Experts Inc. report, sponsored by WIA, points out that a modern smartphone's signal loses about 90 percent of its strength penetrating a typical exterior wall. This leaves enough power for a tower three miles away but not a satellite 400 miles up. Consequently, indoor and in-car satellite connections often fall below the threshold for even a minimal connection.
- Higher Costs: The economic analysis in the Mobile Experts report estimates that while 5G data costs mobile network operators around $0.27 per gigabyte in cities and up to $3.50 per gigabyte in rural areas, satellite D2D costs are predicted to range between $4 and $8 per gigabyte. This makes satellites financially viable primarily in truly remote areas where terrestrial networks are not feasible, rather than as a widespread replacement.
Federal Funding Shifts Away from Satellite
The National Telecommunications and Information Administration (NTIA) recently informed states that many locations previously awarded to satellite internet providers under the BEAD program no longer qualify for funding. This decision follows the FCC's newest broadband coverage map, which shows these spots either do not need service or are already served by a terrestrial provider.
This reduction primarily impacts low-Earth-orbit (LEO) satellite awards, with SpaceX and Amazon Leo collectively set to lose over $1 billion in previously allocated funds. Satellite had accounted for approximately 20 percent of the program's 3.9 million locations, a figure now significantly reduced.
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What This Means for Telecom and Construction Crews
For the workforce building and maintaining our nation's communication infrastructure, these developments have clear implications:
- Sustained Demand for Terrestrial Infrastructure: The technical and economic limitations of satellite D2D, coupled with federal funding shifts, mean that the demand for terrestrial cell towers and related infrastructure will remain strong. This translates to continued work for tower climbers, construction crews, and technicians involved in deploying and upgrading ground-based networks.
- Reliable Communication is Critical: The substantial gap in speed and reliability between satellite D2D and terrestrial networks highlights why ground-based systems are essential for critical communication. On job sites, especially those involving hazardous work like tower climbing or heavy construction, dependable communication is paramount for safety protocols, emergency response, and real-time coordination. Crew leads and safety managers must continue to prioritize robust terrestrial solutions for their teams.
- Focus on Workforce Training: As the industry continues to invest in terrestrial broadband expansion, the need for a highly skilled workforce remains constant. Training in areas like fall protection, rigging, electrical safety, and RF awareness will continue to be vital to ensure crews can safely and efficiently build out these essential networks.
Future of Broadband Funding: Opportunities for Ground-Based Solutions
With roughly $1 billion or more in BEAD funding freed up from satellite awards, the NTIA is exploring new avenues for investment. While specific earmarks are pending, potential uses include permitting reform, workforce training, public safety communications, and Next Generation 911 upgrades. Fixed wireless, which already accounts for about 11 percent of BEAD-eligible locations nationally, is a plausible landing spot for these funds.
Fixed wireless, like fiber, relies on terrestrial infrastructure and has already shown tangible results in the BEAD program, connecting residents in Louisiana and Nebraska. This further reinforces the ongoing need for construction and telecom crews to deploy these ground-based solutions.