In a landmark move for the global telecommunications regulatory landscape, Ofcom, the UK’s communications regulator, has officially approved Telefónica UK’s (Virgin Media O2 “VM02”) request to vary its spectrum licence.
This approval paves the way for the mobile network operator to provide satellite-to-smartphone connectivity, marking a significant milestone in the evolution of the UK’s digital infrastructure.
This development makes VMO2 the first carrier in the United Kingdom to receive such a licence variation, signaling a shift toward Direct-to-Device (D2D) technology as a mainstream solution for nationwide connectivity.
Eliminating ‘Not-Spots’ through D2D Technology
The core of this regulatory breakthrough lies in D2D services, where satellites in Low Earth Orbit (LEO) beam signals directly to standard, unmodified smartphones on the ground.
Traditionally, satellite communication required specialized, bulky hardware; however, this new framework allows existing handsets to bridge the gap in mobile coverage.
For the UK’s digital economy, this is a strategic move to eliminate mobile not-spots, those hard-to-reach rural areas, coastal regions, and mountainous terrains where traditional terrestrial masts are commercially or geographically unviable.
Regulatory Framework and Frequency Allocation
Ofcom’s approval is not just a localized win for VMO2 but a broader regulatory signal. The regulator has:
Updated Licence Parameters: Formally inserted specific frequencies into VMO2’s licence to permit D2D transmissions.
Enacted New Regulations: Finalized the legislative framework to support the rollout of these services, ensuring that standard consumer handsets can legally communicate with satellite constellations.
The new regulations are slated to come into full effect on February 25, 2026, providing a clear timeline for the commencement of commercial or pilot D2D operations.
Techeconomy Perspective on Why This Matters
From a digital economy standpoint, the move by Ofcom reflects a growing global trend where regulators are becoming more agile to accommodate satellite-cellular convergence.
By allowing VMO2 to utilize its spectrum in space, the UK is positioning itself at the forefront of the Non-Terrestrial Network (NTN) revolution.
For businesses and consumers, this means always-on connectivity. In a world where digital inclusion is a driver of GDP, the ability to maintain a signal regardless of geography is no longer a luxury but a critical component of national infrastructure.
What to Watch:
Following VMO2’s lead, other major UK players like EE and Vodafone are expected to seek similar variations as the race for satellite-enabled dead-zone elimination heats up.
For VMO2, this licence variation provides a first-mover advantage in a market that is increasingly looking toward the stars to solve ground-level connectivity challenges.
