FCC Proposes to Modernize Leasing Rules for D2D Services

Seeks Comment on Nearly 500 Megahertz of New Spectrum and Proposes to Eliminate Regulatory Barriers

The Federal Communications Commission adopted a proposal to modernize FCC rules for direct-to-device (D2D) services in licensed spectrum. The Notice of Proposed Rulemaking adopted today proposes regulatory changes to promote more flexible terrestrial, satellite, and hybrid business arrangements and incentivize high-quality D2D service for the benefit of consumers. This marks a major step to unleash American innovation and investment in next-generation connectivity.

Originally adopted in 2024, the FCC’s Supplemental Coverage Space (SCS) framework has allowed wireless carriers to lease spectrum to satellite operators for D2D. Widespread interest, innovation, and investment in D2D since then have made clear that a major refresh is needed. Today’s adopted proposal continues the FCC’s focus on spectrum abundance for D2D services. Notably, the item seeks comment on revising the U.S. Table of Frequency Allocations to increase the number of bands in which SCS is authorized from five to 13 bands, to make an additional 482 megahertz of spectrum available for SCS.

This proposal seeks comment on eliminating burdensome SCS requirements that have created the need for routine waivers. Among other changes, the Notice proposes to eliminate the SCS geographically independent area and lease requirements. The Commission seeks comment on ways to replace the existing, rigid requirements with adaptable geographic license areas and coexistence agreement requirements that accommodate SCS operators’ particular circumstances. 

The Commission also revisits its rigid technical criteria in order to use spectrum more intensively for D2D services and seeks to harmonize the SCS and mobile-satellite service (MSS) rules. The Notice seeks comment on whether to codify the exclusive right to use certain MSS bands. As MSS bands continue to attract significant investment and deal flow, it is timely to revise the Commission’s expectations for licensees to maximize the use of spectrum to the benefit of consumers.

Lastly, the Commission will seek comment on appropriate D2D performance requirements for SCS and MSS D2D providers to ensure that D2D service provides meaningful consumer benefits.

Action by the Commission October 29, 2026 by Notice of Proposed Rulemaking (FCC 26-71). Chairman Carr, Commissioners Gomez and Trusty approving and issuing separate statements.