Strand Consult Says LEO Satellites Will Complement, Not Replace, Mobile Networks
A new Strand Consult report examines the growing role of LEO satellites in network connectivity.
WASHINGTON, Sept. 8, 2026 - Low Earth orbit satellite networks are set to expand connectivity in remote and underserved areas, but they are unlikely to replace terrestrial mobile networks, according to two new reports released last week by Danish telecom consultancy Strand Consult.
The reports argue that growing excitement around direct-to-device satellite services has outpaced the technical and economic realities of the technology. Instead of replacing cellular infrastructure, LEO satellites are more likely to become a complementary layer alongside fiber and mobile networks.
The first report, ‘Will LEO Satellite Direct-to-Cellular Networks Make Traditional Mobile Networks Obsolete?’ examines the limitations of direct-to-cellular services that use terrestrial mobile spectrum. Strand Consult says these systems face significant constraints in network capacity, spectrum availability, latency, and reliability - particularly in densely populated urban areas where conventional cellular networks can support far more simultaneous users.
A second report takes a more provocative approach. Titled ‘Telecom Fiction: It's 2045, the Last Cellular Towers Have Just Been Turned Off, and LEO Satellites Are Handling All Communication,’ it imagines a world where all mobile infrastructure has moved into orbit. The exercise concludes that such a transition would require an unprecedented expansion of satellites, spectrum coordination, ground infrastructure, and international cooperation, making full replacement highly impractical.
The analysis highlights companies including AST SpaceMobile, whose direct-to-device constellation is continuing to grow, as evidence that satellite connectivity is advancing rapidly. But the reports contend that regulatory fragmentation, limited spectrum resources, and the sheer scale required to serve billions of mobile users remain major barriers to satellites functioning as a standalone alternative.
Rather than framing satellites as competitors to cellular networks, Strand Consult concludes that the industry's future lies in a hybrid model: LEO systems extending coverage where terrestrial infrastructure is uneconomical, while fiber and mobile towers continue to carry the vast majority of high-capacity traffic.
The reports are available free through Strand Consult and are intended for policymakers, regulators, investors, and telecom executives evaluating the evolving role of satellite communications.
