FCC Opens Digital Commerce Fast Lane With New Satellite Spectrum

internet access, satellite spectrum, FCC

Chances are, you are reading this online. PYMNTS, after all, is a digital publication.

And with the news Thursday (Sept. 26) that the U.S. Federal Communications Commission (FCC) is unlocking 1300 megahertz of contiguous spectrum for satellite service operations in order to “promote spectrum efficiency, foster competition, and expand the ability of satellite operators to deploy advanced services, including high-speed internet access,” it’s likely that more and more of daily life and commerce will become increasingly interconnected and digital.

Today’s hyperconnected digital environment needs a hyperconnected infrastructure, and access to spectrum — essentially the invisible airwaves that carry wireless signals — is a critical resource. Whether it’s for mobile networks, GPS or satellite communications, spectrum enables data transmission that fuels the internet, digital services, and modern commerce.

As demand for data grows exponentially, the competition for spectrum has intensified, leading to a regulatory push to optimize its use. The FCC’s recent decision to unlock additional spectrum for satellite services represents a significant step forward in meeting these growing demands.

The decision will allow firms like Starlink and other non-geostationary satellite (NGSO) operators to improve broadband speeds in the United States and could be poised to reshape how industries like digital commerce and payments operate.

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Unlocking Greater Potential From the Connected Economy 

Satellite operators have long sought greater access to spectrum as a means to expand their service offerings and improve connectivity in areas where traditional infrastructure is lacking. As PYMNTS has covered, there is potential for growth at the intersection of technical innovation and infrastructure.

With 1,300 megahertz of additional spectrum now available, satellite companies can increase their bandwidth, deliver faster internet services and offer enhanced coverage, even in remote regions. This is particularly important for rural and underserved areas, where terrestrial internet access remains limited or nonexistent.

For consumers, this means access to faster and more affordable satellite internet services, particularly in areas where competition among internet service providers (ISPs) has been historically limited. For businesses, especially those operating in rural or underserved areas, this can mean a significant reduction in the digital divide, allowing them to participate more fully in the global economy.

The implications of the FCC’s decision extend beyond the satellite industry. In today’s connected economy, digital infrastructure is the backbone of economic activity. As satellite operators expand their capabilities, industries such as digital commerce stand to benefit immensely — particularly as next-generation products like Meta’s Orion augmented reality (AR) glasses, which aim to redefine how users engage with digital content in their everyday lives, are brought to market.

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The Evolution of the Digital Landscape

PYMNTS covered Thursday (Sept. 26) how, in today’s rapidly evolving landscape, the pressure on organizations to transition from manual systems to automated solutions is growing.

For small- to medium-sized businesses (SMBs) that may have been hindered by limited internet access, the expansion of satellite services represents a chance to tap into new markets. These businesses will be able to reach customers, suppliers and partners in parts of the world that were previously inaccessible due to connectivity challenges.

At the same time, satellite internet can help to play a crucial role in cross-border commerce. With faster and more reliable internet connections, businesses can better manage supply chains, communicate with international partners and deliver services to global customers. As satellite services expand, there may also be a lock-step increase in global eCommerce transactions, fueling economic growth and innovation.

Still, one of the most significant impacts of the FCC’s spectrum decision will be felt in the world of digital payments.

In the payments industry, speed, security and reliability are paramount. Whether it’s processing a mobile payment, conducting a cross-border transfer or settling a B2B transaction, payment systems require stable and fast internet connections. The expansion of satellite services will allow payment providers to offer more dependable services, even in areas where terrestrial networks are unreliable or non-existent.

As high-speed satellite internet becomes more widely available, the infrastructure for secure and instantaneous financial transactions will improve dramatically — ultimately making technology, commerce and finance more connected.