Half of Customers Say They Would Switch Telco Providers for Satellite Services as Demand Rises - Report

Rhea-AI Summary

Viasat (NASDAQ: VSAT) published a GSMA Intelligence report (Dec 3, 2025) showing rising consumer demand for direct-to-device (D2D) satellite mobile services.

Key findings: 60% of more than 12,000 global respondents would pay more for satellite services; 47% would switch providers to get outdoor coverage; willing-to-pay averages 5–7% extra on monthly bills (India averages 9%). Markets vary: India 89% willingness, U.S. 56%, France 48%. Report highlights revenue opportunity for mobile operators and a potential marketing gap between promised and available data-rich satellite services.

Positive

• 60% of consumers willing to pay more for D2D services
• 47% would switch operators for outdoor satellite coverage
• Willingness-to-pay averages 5–7% higher monthly bills
• India shows 89% willingness and 9% average WTP

Negative

• Potential market-share erosion: 47% willing to switch operators
• Marketing gap risk between expectations and available data services
• ARPU disparity: India $2.35 vs U.S. $45.57

Insights

Market Strategy Expert

Survey shows meaningful consumer willingness to pay and switch for D2D satellite services, creating clear revenue and churn risks for MNOs.

On the business mechanism, the data indicates a direct monetization path: >60% of respondents globally would pay extra for direct-to-device satellite services and willing-to-pay averages cluster around 5-7% of current monthly bills, with higher pockets such as India at 9%. This implies operators can structure incremental service tiers or add-ons that expand ARPU rather than only relying on new subscribers; the survey also flags that 47% of customers would switch providers for outdoor satellite coverage, signalling a tangible churn risk for lagging carriers.

Dependencies and risks are concrete and bounded by the disclosed findings. Revenue capture depends on operators launching commercially viable D2D plans, matching regional willingness-to-pay profiles, and managing consumer expectations where awareness varies widely (for example, 74% awareness in India versus much lower rates in Japan). The report also highlights a marketing mismatch: demand for higher-data satellite use in less developed markets may outpace current service capabilities, so operators risk reputational backlash if product claims exceed technical readiness.

Watch for three measurable items in the near term: commercial service launches and pricing by major MNOs (timing and feature sets), uptake metrics in high-willingness markets (notably India), and churn/migration figures once offerings are live; initial signals should appear within the next 6–18 months. These factors will determine whether the stated willingness-to-pay converts into sustainable ARPU growth or mainly redistributes existing revenue among providers.

New Viasat report — based on a survey of more than 12,000 global smartphone users — reveals 60% would pay more for direct-to-device satellite services, with nearly half ready to switch providers to access.

CARLSBAD., Calif., Dec. 03, 2025 (GLOBE NEWSWIRE) -- Viasat, Inc. (NASDAQ: VSAT), a global leader in satellite communications, today launched a new report revealing that rising demand for direct-to-device (D2D) satellite connectivity could open new revenue streams for Mobile Network Operators (MNOs) — while posing a significant competitive challenge.

The report – The Great Connectivity Convergence: NTN in Consumer Mobile – was conducted by GSMA Intelligence and surveyed more than 12,000 mobile phone users across 12 markets. The report asked customers about satellite services, which complement terrestrial mobile networks to extend network coverage and deliver reliable service in hard-to-reach areas. Together, they enable operators to offer connectivity everywhere. The results revealed that, on average, more than a third of consumers report losing access to basic mobile cellular services at least twice a month.

Perhaps as a result, more than 60% of consumers globally are prepared to pay extra for satellite-enabled services on their smartphones. Appetite varies by market, with high-growth regions like India (89%) and Indonesia (82%) more willing to pay than those in more developed economies such as the U.S. (56%) and France (48%).

Rising demand and revenue potential
This enthusiasm translates into revenue potential for telco providers. On average, globally, consumers who are willing to pay more would be happy to spend 5-7% more on their current phone bill per month. Of all countries surveyed, India presents a particularly compelling case: with an average willingness-to-pay of 9% more on current monthly spend.

According to the report, despite a lower Average Revenue Per User (ARPU) of $2.35 in India - contrasting with the U.S.'s $45.57 -remains a crucial opportunity for MNOs: when taking into account lager population sizes and higher willingness to pay, lower-ARPU markets represent substantial growth opportunities if commercial strategies are tailored effectively.

Providers that do not opt to offer satellite services could face risk of market share erosion. Nearly half (47%) of survey respondents state they would switch to a different operator if outdoor smartphone services in areas outside coverage were included in their subscription.

‘Marketing gap’ could prove a challenge for telcos
Awareness of satellite-enabled features, the report shows, seems heavily influenced by regional market conditions. In India, for example, 74% of consumers are aware of these features — almost 50 points higher than in Japan.

In less economically developed markets, consumers show disproportionately stronger enthusiasm for higher-data-rate applications like web browsing and video calls via satellite. This pattern is reversed in more developed economies, where interest is focused more on messaging and SOS services.

As a result, MNOs could face a ‘marketing gap’: striking a balance between harnessing excitement without over-promising more data-rich services which are not yet available, especially in emerging markets.

Andy Kessler, Vice President Viasat Enterprise, said: “This data highlights frustration with mobile blackspots and shows that consumers are willing to pay or even switch providers for reliable coverage. This means the industry is reaching an inflection point – MNOs need to move fast to harness the excitement over satellite services to secure loyalty and generate revenue. This is about more than providing a feature upgrade – it can be an essential tool for digital inclusion, safety, and economic growth. We’re excited to be forging partnerships within the ecosystem to help make it a reality for millions more users.”

Tim Hatt, Head of Research & Consulting, GSMA Intelligence, said: “Six in ten say they’re willing to pay extra for D2D services, and nearly half would switch provider to get them, a decisive signal of demand and a clear revenue runway for operators. With satellite services aligned to 3GPP standards and moving from trials to commercial reality, the race is on to deliver D2D at scale, first messaging and voice, then data – so operators can differentiate on reach, resilience and customer trust.”

About the report
Viasat and GSMA Intelligence surveyed 12,390 mobile phone users about their existing terrestrial coverage, their awareness and interest in satellite services, and their willingness to pay for these services and to switch mobile network providers to access these services.

From May to June 2025, we surveyed over 1,000 people in each market, covering Australia, Brazil, Canada, France, Germany, India, Indonesia, Italy, Japan, South Africa, the United Kingdom (UK), and the United States of America (USA).

GSMA Intelligence undertook a survey with these same parameters in 2024. Throughout the report data has been compared between both years to reach insights into how key elements have developed in the past year.

About Viasat
Viasat is a global communications company that believes everyone and everything in the world can be connected. With offices in 24 countries around the world, our mission shapes how consumers, businesses, governments and militaries around the world communicate and connect. Viasat is developing the ultimate global communications network to power high-quality, reliable, secure, affordable, fast connections to positively impact people’s lives anywhere they are - on the ground, in the air or at sea, while building a sustainable future in space. In May 2023, Viasat completed its acquisition of Inmarsat, combining the teams, technologies and resources of the two companies to create a new global communications partner. Learn more at www.viasat.com, the Viasat News Room or follow us on LinkedIn, X, Instagram, Facebook, Bluesky, Threads, and YouTube.

Copyright © 2025 Viasat, Inc. All rights reserved. Viasat, the Viasat logo and the Viasat Signal are registered trademarks in the U.S. and in other countries of Viasat, Inc. All other product or company names mentioned are used for identification purposes only and may be trademarks of their respective owners.

About GSMA Intelligence
GSMA Intelligence is the definitive source of global mobile operator data, analysis and forecasts, and publisher of authoritative industry reports and research. It is the most accurate and complete set of industry metrics available, comprising tens of millions of individual data points, updated daily. GSMA Intelligence is relied on by leading operators, vendors, regulators, financial institutions and third-party industry players, to support strategic decision-making and long-term investment planning. For more information, visit gsmaintelligence.com

Viasat, Inc. Contacts
Richard Jones – External Communications, Viasat Enterprise, Richard.jones@viasat.com
Lisa Curran/Peter Lopez, Investor Relations, IR@viasat.com

FAQ

What did Viasat (VSAT) report on consumer demand for satellite mobile services on Dec 3, 2025?

Viasat published a GSMA Intelligence report showing 60% of 12,000+ respondents would pay more for D2D satellite services and 47% would switch providers for outdoor coverage.

How much more are consumers willing to pay for satellite services according to the VSAT report?

Globally, consumers willing to pay would spend about 5–7% more on monthly phone bills; in India the average is 9%.

Which markets show the highest willingness to pay for D2D satellite services in the VSAT report?

High-growth markets lead: India 89% and Indonesia 82% showed the strongest willingness to pay.

What revenue implication does the VSAT report highlight for mobile operators?

The report indicates a clear revenue runway as D2D services could drive additional ARPU via 5–7% higher monthly spend from willing customers.

What risk does Viasat say operators face if they don’t offer satellite services (VSAT)?

Operators risk market-share erosion, since 47% of consumers said they would switch to get outdoor satellite coverage.

How does ARPU compare between India and the U.S. in the VSAT report?

The report cites ARPU of $2.35 in India versus $45.57 in the U.S.